Item 5 Fees and Compensation
Clients compensate ACG for all services furnished under the Investment Management Program
by the payment of fees (Management Fees) on a percentage of the assets under management.
ACG charges an annualized Management Fee that ranges up to 1.75%, depending on a number
of factors including the size and complexity of the client account.
If a client account is referred by a Referral Advisor to ACG, the Referral Advisor may receive up
to 50% of ACG’s Management Fee.
Management Fees will be calculated at the beginning of each month. Management Fees may be
charged in arrears or in advance depending on the client agreement. Management Fees will be
prorated and be based on the Period Ending Balance of the client’s account assets under
management at the end of the previous month. Management Fees do not take into account
securities that are not priced. Management Fees will be deducted from the account. A client
account that is opened mid-period will be charged an initial Management Fee that includes a
portion of the fee that is pro-rated for the number of days that the account is open in the first
month. Management Fees will be noted on client’s monthly Broker-Dealer/ Custodian statements.
ACG charges a fee of $150 per outside account for its Flat Fee – Outside Account Advice. This
annual flat fee is negotiable at the discretion of ACG.
In instances where the management of client accounts is delegated to other investment advisors
that have subadvisor agreements with ACG or separate agreements with clients the fees for these
services will range up to 100 basis points (bps). Some of these other investment advisors are paid
by ACG’s Management Fees. Other investment advisors may charge their fees separately from
ACG’s Management Fees. If other investment advisor fees are deducted separately from ACG
Management Fees those other fees will be noted separately from ACG Management Fees. The
use of other investment advisors in the management of a client account may increase the fees
that the client pays for their advisory services. A complete description of these other investment
advisors’ fees is described in their Form ADV Part 2A Disclosure Brochures.
Clients may incur certain charges imposed by third parties other than ACG in connection with
investments placed in the account, including but not limited to:
IRA and Qualified Retirement Plan Fees, and other custodial fees; and
Mutual fund and variable annuity internal expenses, commissions, sales loads, 12(b)-1 fees,
trail fees and surrender charges. The purchase of mutual fund shares in a client’s account
can result in certain processing and mailing charges that are not incurred when shares are
purchased directly from the mutual fund company.
Broker-Dealer and Custodian fees, expenses, and commission charges are separate and distinct
from the fee charged by ACG.
Investment Management Program accounts may be terminated by ACG or client effective upon
receipt of written notice to the other party. Upon termination, the client shall receive a refund of
any Management Fee not already earned by the ACG. Termination of an Investment Management
Program account will not affect the liabilities or obligations of the parties arising out of transactions
initiated prior to termination.
Financial Planning Services
Financial Planning Services are often included for Clients as part of their Clients will compensate
ACG for all Financial Planning Services furnished to them by the payment of fees (“Financial
Planning Fees”), which are due and payable upon completion of the financial planning services
provided by ACG. The Financial Planning Fees for the services being rendered do not include
payment for other professional services, which may be required by clients to implement the
recommendations made by ACG. Clients will be billed at an hourly rate of up to $500 per hour, a
fixed fee rate of up to $50,000 or based on a percentage of specific assets under advisement up
to 1.75%. ACG’s minimum financial planning fee is $100. However, the minimum Financial
Planning Fees are negotiable. Financial Planning Fees will be determined by the IAR based upon
the complexity of the client’s financial situation and the services being provided and will be
disclosed to the client prior to the services being provided.
ACG’s Financial Planning Services may be terminated by either ACG or the client effective upon
receipt of written notice to the other party. Upon termination, the client will receive a refund of any
Financial Planning Fees not already earned by ACG. Any Financial Planning Fees owed by the
client are immediately due and payable at the termination of the Financial Planning Agreement.
Retirement Plan Advisory and Review Program
For its Retirement Plan Advisory and Review Program, ACG’s Investment Advisory Fee is a
maximum of 1.0% of Plan assets, with a minimum fee of $500. This fee is negotiable at the
discretion of ACG. ACG’s Investment Advisory Fees are paid quarterly or monthly in arrears or
advance based on the previous period ending balance of the assets invested in the Plan.
ACG’s Retirement Plan Advisory and Review Program is best suited to employers of fifty or more
employees or plans with $1,000,000 or more of assets. For Qualified Plans with fewer employees
or assets of less than $1,000,000 a negotiated fee will be considered for the scope of work to be
performed.
ACG’s Retirement Plan Advisory and Review Program may be terminated by ACG or Qualified
Plan by giving the other party written notice. The agreement will then be terminated upon receipt
of the termination notice by the other party. Any prepaid, unearned fees will be refunded to the
Qualified Plan. ACG doesn’t charge a termination fee.
Estate Planning Services
The fees for our Estate Planning Services are listed below. Fees are payable at the time the
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