Item 5. Fees and Compensation
Advisory Partners offers services on a fee basis, which may include fixed fees, as well as fees based upon
assets under management. Additionally, certain of the Firm’s Supervised Persons, in their individual
capacities, offer insurance products under a separate commission-based arrangement.
Investment Management Fees
Advisory Partners offers Investment Management Services (which include consulting services, family
office services, global review of financial situation, and chief investment officer service) for an annual
Page | 7
Disclosure Brochure
Investment Management Fee based on the amount of assets under the Firm’s management. This
management fee generally varies between 20 and 150 basis points (0.20% – 1.50%), per annum, depending
upon the size and composition of a Client’s portfolio and the type of services rendered.
The annual Investment Management Fee is typically charged quarterly, in advance, based upon the market
value of the assets being managed by Advisory Partners on the last day of the previous billing period. If
assets are deposited into or withdrawn from an account after the inception of a billing period, the fee payable
with respect to such assets is adjusted to reflect the interim change in portfolio value. For the initial period
of an engagement, the fee is calculated on a pro rata basis. In the event the advisory agreement is
terminated, the fee for the final billing period is prorated through the effective date of the termination and
the outstanding or unearned portion of the fee is charged or refunded to the Client, as appropriate. The
terms and conditions of the Investment Management Services and Fees are set forth in each Client’s
Advisory Agreement.
Family Office Fees
Advisory Partners typically charges a fixed fee for Family Office Services (“Family Office Fee”), which
can be in addition to the asset-based Investment Management Fee or for services provided without
Investment Management Services under a stand-alone engagement. Family Office Fees are negotiable,
depending upon the scope and complexity of the services provided. The terms and conditions of the Family
Office Services and Fees are set forth in the Advisory Agreement, and Advisory Partners will typically charge
these fees quarterly in advance.
Fee Discretion
Advisory Partners may, in its sole discretion, negotiate to charge a lesser fee based upon certain criteria,
such as anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to
be managed, related accounts, account composition, pre-existing/legacy client relationship, account
retention and pro bono activities.
Additional Fees and Expenses
In addition to the fees paid to Advisory Partners, Clients may also incur certain charges imposed by other
third parties, such as broker-dealers, custodians, trust companies, banks and other financial institutions
(collectively “Financial Institutions”). These additional charges may include securities brokerage
commissions, transaction fees, custodial fees, margin costs, embedded fees and expense ratio 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), transfer taxes, wire transfer and electronic fund fees, and
other fees and taxes on brokerage accounts and securities transactions. The Firm’s brokerage practices are
described at length in Item 12, below.
Page | 8
Disclosure Brochure
Fees charged by Independent Managers to manage portions of Client’s assets are separate from and in
addition to Advisory Partners’ fees described above. Independent Manager fees are set out in each
Independent Manager’s investment advisory agreement with each Client.
Direct Fee Debit
Clients generally provide Advisory Partners and/or certain Independent Managers with the authority to
directly debit their custody account(s) for payment of the investment advisory fees. The Financial
Institutions that act as the qualified custodian for Client accounts, from which the Firm retains the authority
to directly deduct fees, have agreed to send statements to Clients not less than quarterly detailing all account
transactions, including any amounts paid to Advisory Partners. Advisory Partners encourages Clients to
review these statements and contact us with any questions.
Account Additions and Withdrawals
Clients may make additions to and withdrawals from their account at any time, subject to Advisory Partners’
right to terminate an account. Additions may be in cash or securities provided that the Firm reserves the
right to liquidate any transferred securities or declines to accept particular securities into a Client’s account.
Clients may withdraw account assets on notice to Advisory Partners, subject to the usual and customary
securities settlement procedures. However, the Firm generally designs its portfolios as long-term
investments and the withdrawal of assets may impair the achievement of a Client’s investment objectives.
Advisory Partners may consult with its Clients about the options and implications of transferring securities.
Clients are advised that when transferred securities are liquidated, they may be subject to transaction fees,
short-term redemption fees, fees assessed at the mutual fund level (e.g., contingent deferred sales charges)
and/or tax ramifications.