Item 5: Fees & Compensation
We are required to describe our brokerage, custody, fees and fund expenses so you will know how
much you are charged and by whom for our advisory services provided to you. Our fees are generally
negotiable.
Asset Management:
Our asset management programs will provide discretionary or non-discretionary asset allocation
services across all major asset classes including but not limited to cash and currency, money
market mutual funds, taxable fixed income (taxable bonds) and non-taxable fixed income
(municipal securities), US and international equities, real estate related securities, commodity
related securities, indexes and exchange traded funds (ETF’s), preferred securities/shares, notes,
options (index, ETF or single security), mutual funds, single issue concentrated positions (stocks
and/or bonds), and other securities and/or contracts relating to the same. Our programs will
utilize different securities in each category to implement the diversified asset allocation program,
including: indexes and exchange traded funds/notes, options (index, ETF or single security) and
single issue (stocks & bonds). Our fees are based on the complexity of the account, time involved,
trading activity and program objective best suited for the client. A basic financial planning review
may be included with your advisory fees upon request.
We charge an annualized fee, not to exceed 1.50% of investable assets under management or a
negotiated flat rate may be applied in certain circumstances. The negotiated fee as agreed upon
will be outlined in your advisory agreement with us. Our firm’s fees are billed on a pro-rata
annualized basis quarterly in advance based on the value of your account on or about the last day
of March, June, September, and December (the corresponding previous quarter). Adjustments
will be made for deposits and withdrawals on the quarterly billing cycles. Clients entering into an
advisory agreement mid-quarter will have their initial bill debited the month following the
transfer of assets and based on the end value of the account of the prior month. These accounts
will be billed on a quarterly basis in advance on the start of the following quarterly schedule.
Adjustments for deposits or withdrawals will not be made on the account’s initial billing cycle.
Further, it is important to note that our firm will charge advisory fees on cash and cash
equivalents held in client accounts.
In rare cases, we will agree to invoice clients. Fees will generally be automatically deducted from your
managed account. As part of this process, client is made aware of the following:
a) Your independent custodian sends statements at least quarterly to you showing the
market values for each security included in the Assets and all disbursements in your
account including the amount of the advisory fees paid to us;
b) You provide authorization permitting us to be directly paid by these terms;
c) We generally do not invoice clients. In the rare case that we agree to invoice, we send an
invoice to the you the Client including a legend urging the comparison of information
provided in the invoice with those from the qualified custodian.
d) ERISA Regulation Section 2550.408b-2(c) requires that we disclose our direct and
indirect compensation for advisory services provided for ERISA plans for which we act as
a fiduciary within the meaning of Section 3(21)(A) of ERISA. We never receive indirect
compensation for these services and only charge the agreed upon amount specified in the
advisory agreement executed by the client. Alpha Cubed Investments, LLC does not
provide record keeping services or charge for such services. The qualified custodian
sends monthly statements of holdings and fees.
Financial Planning and Consulting:
Our firm may charge on an hourly, a flat fee basis or percentage of assets under advisement for
standalone financial plans and consulting services. The total estimated fee, as well as the ultimate
fee charged, is negotiable and based on the scope and complexity of our engagement with the
client. The maximum hourly fee to be charged will not exceed $350. Flat fees range from $1,500
to $10,000. The fee based on a percentage of assets under advisement will not exceed 1%. Our
firm requires a retainer of fifty-percent (50%) of the ultimate financial planning or consulting fee
at the time of signing for the hourly or flat fee offering. The remainder of the fee will be directly
billed to the client and due within thirty (30) days of a financial plan being delivered or
consultation rendered. Our firm will not require a retainer exceeding $1,200 when services
cannot be rendered within 6 (six) months.
Family Office Services:
Fees for Family Office Services are based on the general amount of time we spend working with
the family. Fees are negotiated and determined by the complexity of the engagement. We charge
a fee based on Assets Under Management that will not exceed 1.50%.
Additional Information about Fees
Clients may incur transaction charges for trades executed in their accounts. These transaction
fees are separate from our advisory fees and will be disclosed by the firm that the trades are
executed through. It is important to note, however, that Charles Schwab & Co., Inc. no longer
charges transaction fees on domestic stocks and exchange traded funds. Also, clients will pay the
following separately incurred expenses, which we do not receive any part of: charges imposed
directly by a mutual fund, index fund, or exchange traded fund which shall be disclosed in the
fund’s prospectus (i.e., fund management fees and other fund expenses).
...