Item 5. Fees and Compensation
AdvicePeriod is compensated for its services in the form of fixed fees or fees based upon
assets under management or advisement depending on the client relationship,
circumstance, and complexity. For Core Family Office Services, AdvicePeriod charges a fixed
quarterly fee or on an hourly basis depending on the scope of the engagement.
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Fees
Clients will generally pay: either ninety-five (95) basis points based on the market value of
the assets under management (“AUM”) or assets under advisement (“AUA”) being managed
or advised on by the Firm, although that amount may be higher or lower depending on
various circumstances; or a fixed fee, depending on various factors such as investable assets,
administration, reporting, oversight, financial planning, estate planning, and client
complexity. In some instances, clients will pay a combination of both types of fees
(AUM/AUA and fixed). Although AdvicePeriod does not have a minimum account size
requirement, in certain cases it sets a fixed fee term based on client situations and as a result,
the fixed fee causes our typical 95 basis points to be higher, or, in other cases, AdvicePeriod
charges ninety-five (95) basis points with a minimum fixed fee. Clients will generally pay an
annual fixed fee between $5,000 to $500,0001, depending on circumstances and
requirements, but there are instances in which some clients will pay lower fees and some
cases in which clients will pay higher fees than those amounts.
The annual fee for AdvicePeriod’s services is prorated and typically is charged prospectively
on a quarterly basis. In the event the Agreement is terminated, the fee for the final billing
period is prorated through the effective date of the termination and the outstanding balance
is charged to the client, as appropriate, or any prospective payment in excess of the prorated
portion is credited to the client’s account.
Fees and hourly rates for CFO Services:
AdvicePeriod charges a fixed quarterly fee or on an hourly basis for CFO Services,
depending on the scope of the engagement. Clients will generally pay an annual fixed fee
between $5,000 to $500,000, depending on circumstances and requirements, but there are
instances in which some clients will pay lower and some cases in which clients will pay higher
than those amounts. Hourly rates for CFO Services are:
• Principals $600 - $800
• Managers/Sr. Managers $300 - $450
Fixed fees typically are subject to annual inflation increases of 3%.
AdvicePeriod.com 2121 Avenue of the Stars, Suite 2400, Los Angeles, CA 90067 O 424.281.3600 F 424.281.3601
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• Associates $150 - $250
• Staff Accountants $100 - $150
The hourly rates for CFO services are determined by the scope and complexities of services
required and the rates are based upon the experience of the individual. The hourly rates for
CFO services are billed in arrears separately from advisory fees which are typically billed in
advance. The fixed annual fee for AdvicePeriod’s CFO Services is prorated and typically is
charged prospectively on a quarterly basis.
Fee Discretion
AdvicePeriod, in its sole discretion, will negotiate to charge a greater or lesser fee based
upon certain criteria, such as the complexity of the client’s portfolio, the level of expertise
required to service the account, the staff time involved in servicing the account, potential
value added to the client for the services to be provided, pre-existing client relationships,
anticipated future additional assets, dollar amount of assets to be managed, account
retention and pro bono activities among other factors. Related client accounts may be
aggregated for purposes of calculating fees. AdvicePeriod reserves the right to waive or
reduce its advisory fee at any time when it deems it appropriate and/or necessary.
Use of Margin
Where appropriate, AdvicePeriod is authorized to use margin in the management of the
client’s investment portfolio. In these cases, the fee payable will be assessed gross of margin
such that the market value of the client’s account and corresponding fee payable by the
client to AdvicePeriod will be increased.
Additional Fees and Expenses
In addition to the advisory fees paid to AdvicePeriod, clients bear certain charges that are
imposed by other third parties, such as broker-dealers, custodians, trust companies, banks
and other financial institutions (collectively “Financial Institutions”). These additional charges
include securities brokerage commissions, transaction fees, custodial fees, fees charged by
the Independent Managers, charges imposed directly by a mutual fund or ETF in a client’s
account, as disclosed in the fund’s prospectus (e.g., fund management fees and other fund
expenses), margin costs, reporting charges, deferred sales charges, odd-lot differentials,
transfer taxes, wire transfer and electronic fund fees and other fees and taxes on brokerage
AdvicePeriod.com 2121 Avenue of the Stars, Suite 2400, Los Angeles, CA 90067 O 424.281.3600 F 424.281.3601
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accounts and securities transactions. The Firm’s brokerage practices are described at length
in Item 12 below.
Many funds offer multiple share classes available for investment based upon certain
eligibility and/or purchase requirements. For instance, in addition to more commonly
offered retail mutual fund share classes (typically, Class A (including load-waived A shares),
B and C shares for mutual funds), some funds offer institutional share classes or other share
classes specifically designed for purchase by an account for a fee-based investment advisory
...