(5) Fees and Compensation
Agili is a fee-only financial advisory firm. As such, our sole source of compensation is the fees our clients
pay us. Neither the firm nor any employee receives compensation from the sale of securities or other
investment products.
Clients of Agili pay for investment advisory and financial planning services either as a percentage of
assets under management or a fixed fee. A client who receives comprehensive investment and financial
strategy services is charged a fee based on the total market value of the assets under management. We
measure market value at the beginning of each calendar quarter, and we bill clients quarterly in
advance. Our standard annual fee schedule for assets managed is:
• 1.00% on the first $2,000,000 managed, plus
• 0.50% on the next $8,000,000 managed, plus
• 0.35% on assets managed in excess of $10,000,000.
Assets supervised include assets in which the client has limited investment choices, such as certain
401(k) plans, personal and investment real estate, etc. Whether an account classifies as assets managed
or assets supervised is determined by Agili. Agili reserves the right to reclassify accounts if their
investment choices expand or the account, or its purpose in the portfolio, becomes more complex. Our
standard annual fee schedule for assets supervised is:
• 0.50% on total assets supervised.
The above-listed standard fee schedule may be subject to a minimum annual fee based on the
complexity of the overall client engagement. This minimum annual fee is disclosed and mutually agreed
to with the client in the letter of engagement between Agili and the client. A different fee may be
mutually determined by Agili and the client if, for example, the client’s situation is less complex.
Certain clients may be charged a flat fee for financial advisory services. In these cases, the total fee is
based on the number of hours we spend fact-finding, analyzing, developing, and presenting the client’s
financial plan. Prior to the engagement, we provide the client with an estimate of the total expected
fees. We may request an advance of up to fifty percent (50%) of the expected total fees when the client
enters into a flat fee financial planning engagement.
A client may select one of two methods for paying an Agili invoice: the client may submit payment or
the client may elect to have fees deducted from one or more of his investment accounts. In either case,
an invoice will be issued to the client on a quarterly basis. If the client has elected to have his fee
deducted from one or more of his investment accounts, the invoice is for informational purposes only
and includes the fee calculation. When entering an engagement, Agili generally requires a deposit
before performing investment advisory services. This advance deposit is credited against future billings.
Either the client or Agili may cancel a client agreement at any time, for any reason or no reason at all, by
providing the other party with written notice. If a client agreement is terminated, Agili will return all
unearned fees to the client within 30 (thirty) days. The amount of the refund is determined by a pro-
rated amount of the quarterly fee that was paid in advance where the numerator is the number of days
remaining in the quarter and the denominator is the total number of days in the quarter. For example,
if an engagement is terminated after 30 days of a quarter that consists of 90 days, the refund will equal
the amount of the quarterly fee paid in advance times 60 days/90 days.
In addition to paying Agili a fee, clients who own mutual funds, hedge funds or limited partnerships will
also be subject to the operating expenses of the various underlying investments. These operating
expenses are generally for management fees and distribution and administrative costs of the underlying
funds. On a mutual fund, this is commonly known as the “expense ratio.” Agili has no financial interest
in and receives no compensation from these operating expenses.
Finally, clients will also incur brokerage and other transaction costs when Agili buys and sells securities
in their accounts. These costs are discussed in more detail in Section 12, “Brokerage Practices,” of this
brochure.