Item 5: Fees and Compensation
A. Fee Schedule
Asset-Based Fees for Portfolio Management
Total Assets Under Management Annual Fee
$1,000,000 - 4,000,000 1.00%
$4,000,001 - $8,000,000 0.75%
$8,000,001 - $15,000,000 0.50%
$15,000,001 - $25,000,000 0.25%
$25,000,001 + 0.15%
These fees are generally negotiable and the final fee schedule is included in the quarterly
client billing statement. AWA bills in arrears based on the average daily balance during
the previous billing period. New clients can terminate the agreement without penalty for
a full refund of AWA's fees within five business days of signing the Investment Advisory
Contract. Subject to the terms of the investment management agreement, agreements
terminated within the first year will be subject to a termination fee equal to the balance of
the first year’s fee based on the prior quarter-end balance or the date prior of termination,
if less than a full quarter. Thereafter, clients may terminate the Investment Advisory
Contract with thirty days’ written notice.
Selection of Other Advisers Fees
AWA routinely recommends third-party investment advisers, whose services are
accessed via separate accounts or private funds, to manage all or a portion of the client's
assets. In such cases, AWA will receive its standard fee on top of the fee paid to the third-
party adviser. This third-party relationship will be memorialized in each instance by
contract between the client and each third-party adviser. The notice of termination
requirement and payment of fees for third-party investment advisers will depend on the
specific third-party adviser selected.
Financial Planning Fees
The rate for creating client financial plans is subject to negotiation but typically ranges
between $5,000 and $10,000. Clients may terminate the agreement without penalty for a
full refund of AWA's fees within five business days of engagement. Thereafter, clients
may terminate the engagement with no notice.
B. Payment of Fees
Payment of Asset-Based Portfolio Management Fees
Asset-based portfolio management fees are withdrawn directly from the client's accounts
with client's written authorization on a quarterly basis. Fees are paid in arrears.
Payment of Selection of Other Advisers Fees
The timing, frequency, and method of paying fees for selection of third-party managers
will depend on the specific third-party adviser selected and will be disclosed to the client
prior to entering into a relationship with the third-party adviser.
Payment of Financial Planning Fees
Payment of fixed financial planning fees are determined in consultation with the client
but are typically paid upon delivery of the financial plan.
C. Client Responsibility for Third Party Fees
AWA clients commonly incur certain charges imposed by custodians, brokers, third party
investments and other third parties such as fees charged by managers, deferred sales
charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and
other fees, such as commissions, and taxes on brokerage accounts and securities
transactions. Mutual funds and exchange traded funds also charge internal management
fees, which are disclosed in a fund’s prospectus. Such charges, fees and commissions are
exclusive of and in addition to AWA’s fees. Please see Item 12 of this brochure regarding