Fees and Compensation
Altruist will instruct Altruist Financial LLC as the custodian for the Allocation TPA Program, and Altruist Financial
LLC will act on such instructions, to deduct and pay to Altruist fees charged by Altruist for the Allocation TPA
Program (“Model Marketplace Fees”, “Tax Management Tool Fee”) from Third-Party Advisors’ firm brokerage
accounts or TPA Users’ brokerage accounts, according to the instructions of the Third-Party Advisors and as
authorized by the TPA Users. Separately, the Third-Party Advisors will instruct Altruist Financial LLC - through the
portfolio accounting software features of the Website - to deduct their advisory fees from the TPA Users,
according to the authorization of the TPA Users.
Altruist’s Model Marketplace Fees are based on a percentage of the market value of the assets in an account that
are invested in model portfolios made available in the Allocation TPA Program, and generally range from 0.00% to
1.00%. Specific fees for each model portfolio can be found on the Altruist LLC Fee Schedule.
The Tax Management Tool Fee is charged by Altruist for Third-Party Advisors’ usage of Altruist’s tax management
tools in connection with the Third-Party Advisors’ management of TPA User accounts. The Tax Management Tool
Fee is charged on assets invested in TPA Models and TPA Portfolios (as defined below). This fee will be charged
on the portion of assets in a TPA User account which are invested in TPA Models and TPA Portfolios, exclusive of
assets invested in Model Marketplace model portfolios. Altruist’s Tax Management Tool Fee will range generally
from 0.00% to 1.00% and can be found on the Altruist LLC Fee Schedule.
Altruist’s fees are charged on a pro-rata annualized basis monthly in arrears based on the value of assets in TPA
User accounts which are enrolled in the Allocation TPA Program and are subscribed to model portfolios or are
utilizing tax management tools at any point during the previous month. The TPA User should consult with their
respective Third-Party Advisor on the specifics of the Third-Party Advisor’s practices or arrangements with
respect to Altruist’s Model Marketplace Fees and Tax Management Tool Fee, including as to whether the
Third-Party Advisor will pay the fees or pass them on to the TPA User, as well as the Third-Party Advisor’s own
advisory and other fees.
Third-Party Advisors will pay a monthly subscription fee to Altruist Corp for portfolio accounting software
(“Accounting Software”) and general access to the Website.
As of the date of this Brochure, there are no minimum account size requirements for most model portfolios in the
Model Marketplace. However, the Altruist generated Strategist model portfolio series has a minimum investment
which starts at $2,000 and varies depending on the equity allocation of the model portfolio. Additionally, the
Altruist Strategist Direct Index, when used as a standalone strategy (via Unified Managed Accounts) has a $1,200
investment minimum. Please refer to the Strategist fact sheet found on the Website for more details on minimums.
Separately Managed Account (“SMA”) model portfolios have minimums starting at $1,000. Altruist reserves the
right to impose minimum account sizes or values in the future at its discretion. Fees are not negotiable.
Altruist or a Third-Party Advisor can terminate the Third-Party Advisor’s participation in the Allocation TPA
Program at any time generally or as to any TPA User. Each TPA User can also terminate its Altruist Financial LLC
brokerage account at any time pursuant to the brokerage account agreement with Altruist Financial LLC, as
appropriate. Upon termination of a TPA User’s account, assets are transferred to another brokerage account or
liquidated, according to the instructions of the Third- Party Advisor (if authorized by the TPA User) or TPA User, as
soon as practicable and money is returned to the TPA User, if applicable. Once the account termination process is
initiated, Altruist will only receive fees through the termination date (and not thereafter).
Altruist reserves the right to waive its fees or any part thereof for any period for any Third-Party Advisors or TPA
Users in Altruist’s sole discretion. To this end, Altruist may, from time to time, elect to launch programs or
initiatives whereby fees may be waived, in whole or in part, for certain categories of Third-Party Advisors or TPA
Users. Any such program or initiative (i) is entirely discretionary to Altruist, and can be expanded, narrowed,
suspended, canceled or modified at any time by Altruist, and (ii) will be subject to any rules, guidelines and/or
terms and conditions created by Altruist in connection therewith (which rules, guidelines and/or terms may be
included in website landing pages on the Website and/or elsewhere). To the extent any such program or initiative
is canceled or terminated, applicable Third-Party Advisors or TPA Users will once again be charged the
then-current fees on a going-forward basis. Altruist shall have sole discretion in determining whether or not any
existing or potential Third-Party Advisor or TPA User meets the requirements to participate in and/or benefit from
any such program or initiative.
Altruist or a Third-Party Advisor can terminate the Third-Party Advisor’s participation in the Allocation TPA
Program at any time generally or as to any TPA User. Each TPA User can also terminate its Altruist Financial LLC
brokerage account at any time pursuant to the brokerage account agreement with Altruist Financial LLC, as
appropriate. Upon termination of a TPA User’s account, assets are transferred to another brokerage account or
liquidated, according to the instructions of the Third- Party Advisor (if authorized by the TPA User) or TPA User, as
soon as practicable and money is returned to the TPA User, if applicable. Once the account termination process is
initiated, Altruist will only receive fees through the termination date (and not thereafter).
...