Item 5 Fees and Compensation
Asset Management Fees
Pursuant to an investment advisory contract signed by each client, the client will pay Alphacopia
an annual management fee as detailed below, payable monthly or quarterly in arrears, based on the
value of portfolio assets of the account managed by the Advisor on the last business day of the
month or quarter.
Tiered Market Values Tiered Fee Rates
Up to $3,000,000 1.00%
$3,000,001 - $6,000,000 0.75%
Over $6,000,000 0.50%
New account fees will be prorated from the inception of the account to the end of the first month
or quarter. These fees may be negotiated at the sole discretion of the Advisor. Asset management
fees will be directly deducted from the client account on a monthly or quarterly basis by the
qualified custodian. The client will give written authorization permitting the Advisor to be paid
directly from their account held by the custodian. The custodian will send a statement at least
quarterly to the client and the Advisor will also send an invoice to the client outlining the fee
calculation and time period covered, and the amount withdrawn from the client account at the same
time the fee deduction invoice is sent to the qualified custodian.
All fees paid to Alphacopia for investment advisory services are separate and distinct from the
expenses charged by mutual funds to their shareholders. These fees and expenses are described in
each fund’s prospectus. These fees will generally include a management fee and other fund
expenses. The client is responsible for all custodial and securities execution fees charged by the
custodian and executing broker-dealer. The Advisor’s fee is separate and distinct from the
custodian and execution fees.
Sub-advisory Investment Management Fees
In consideration for providing sub-advisory investment management services and pursuant to the
terms of the Sub-Advisory Agreement with an advisor, Alphacopia generally charges advisers
0.10% to 0.75% of each client’s assets under management, payable monthly or quarterly in arrears,
based on the value of portfolio assets of the account managed by the Advisor on the last business
day of the month or quarter. Alternatively, for certain sub-advisory relationships Alphacopia may
agree to a revenue-sharing fee, under which Alphacopia receives an agreed percentage of the net
investment advisory fee that the Primary Adviser collects from its client for the assets Alphacopia
sub-advises. The fee structure for each relationship (asset-based or revenue-sharing), the rate, and
Alphacopia Page 7
the billing frequency are negotiated at arm’s length with each unaffiliated Primary Adviser and are
set forth in the applicable Sub-Advisory Agreement; sub-advisory fees are payable monthly or
quarterly in arrears. Sub-advisory fees are paid to Alphacopia by the Primary Adviser and are not
billed directly to, or deducted by Alphacopia from, the underlying client’s account unless the client
and the Primary Adviser expressly authorize such deduction in writing. Because each sub-advisory
relationship is individually negotiated, the fees paid by one Primary Adviser may differ from those
paid by another for similar services. In no event is any sub-advisory fee based on a share of capital
gains or capital appreciation of client assets, except in compliance with Rule 205-3 under the
Investment Advisers Act.
Business Consulting Fees
Advisor charges a fixed fee for Business Consulting Services. The fee will be based on the scope
of services, complexity, and expected duration of the project. Fixed fees will be negotiated and
agreed to in advance, and will be charged monthly, in arrears, and upon completion of the services
rendered. If the final fee is not paid by the client upon completion of the services, the client is
required to pay the fee within five days of delivery of the final invoice. If the client terminates the
Agreement with the Advisor prior to the Advisor's completion of the project, any fees due the
Advisor will be invoiced to the client and payable within five days of delivery of the invoice.
Investment Consulting Fees
Third-Party Advisors may be charged a monthly fee of up to $100,000 for the ongoing investment
research and support component of these services. For each of the Advisor's services described
above, the Client may terminate these services within five business days of the effective date of an
Agreement signed with the Advisor without any payment of the Advisor's fee.
Wealth Planning Fees
Clients that enter into an investment management agreement with Alphacopia may receive wealth
planning services at no extra cost to them. For those clients that do not receive investment
management advice from Alphacopia, but wish to receive our wealth planning services, wealth
planning fees are negotiated with each client based on their needs, objectives, and the complexity
of their financial situation. The firm may charge a flat fee rate ranging from $500 to $25,000 for
wealth planning services. The total estimated fee, as well as the ultimate fee that we charge the
client is based on the scope and complexity of the services provided, as well as, the client
relationship. Alphacopia provides initial consultations for our wealth planning services.
Our Wealth Planning Fee is invoiced to the Client upon completion and presentation of the Client’s
financial plan and due to our firm within thirty (30) days of the invoice date. Wealth planning
services will be considered complete at the presentation of the final plan in a face-to-face meeting
with the client, at which point a physical copy of the plan will also be provided to the client.
Fees Associated with Selection of Unaffiliated Investment Managers
...