Item 5 – Fees and Compensation
Fees for Asset Management Services
Fees paid to your IAR for investment advisory services (“IAR Fee”) are negotiable. IARs are permitted to offer advisory services and
charge fees in accordance with the descriptions detailed in this document. However, the exact services you will receive and the fees you
will be charged are dependent upon the complexity of your financial situation, the investment services to be provided, the experience and
standard fees charged by your IAR, and the nature and total dollar value of assets maintained in your account. Fees are typically charged
based on a percentage of your account value as determined by the custodian of your account, and include all positions in the account
including cash, money market funds and brokered CDs unless specifically excluded by policy or by agreement with your IAR.
Advisory programs have additional fees such as platform fees, transaction fees, fees to third-party investment advisors and clearing and
custodial fees that are separate from your IAR’s fee. These fees are outlined in more detail below.
Galaxy Program
You will pay a fee based upon your account value as reported by the custodian of your account. . Your IAR has the option to charge a “linear fee”
or “tiered fee,” with a minimum IAR fee of 0.50% and a maximum IAR fee as outlined below.
AIC 793 Page 10 of 37 09-15-21
Form ADV – Part 2A
Fee Schedule
Account Value Maximum Fee
First $250,000 2.00%
$250,001 – $500,000 1.75%
$500,001 – $1,000,000 1.50%
$1,000,001 – $3,000,000 1.25%
$3,000,001 + 1.00%
When choosing a linear fee arrangement, you will pay a maximum fee of 2.00% if your total account value is $250,000 or below, 1.75% if your
account value is $500,000 or below, and so on. In a tiered fee arrangement, once the value of your account meets the next tier, the new rate
will be applied to all assets above the tier up to the next tier. For example, you will pay 2.00% on the first $250,000 in assets, 1.75% on the
next $250,000, and so on.
Fees are payable quarterly in advance and are calculated based on the account value as reported by the custodian of your account as of the
last business day of the previous quarter. The initial quarterly fee will be based on the initial balance of your account and prorated based on
the number of billing days in the initial quarter. An IAR Fee will not be imposed for 2 years from the date of purchase on mutual fund Class A
and B shares that were subject to a commission and sold to you by your IAR on a commission basis in his/her capacity as a registered
representative of AIC. In addition, the value of any annuity, investment designated as an “alternative investment product,” such as a non-
traded real estate investment trust, or mutual fund Class C shares will be excluded from the IAR fee if you purchased it in a commission-based
account through a registered representative of AIC and then transferred it to a Galaxy Program account.
However, if an annuity was purchased at Net Asset Value (“NAV”) (in other words, purchased for no commission), then that annuity will be
subject to the IAR Fee. Other investments including but not limited to stocks, bonds, ETFs, UITs, structured products, Class A and B share
mutual funds (held for more than 2 years if purchased at AIC), money market funds, brokered CDs, and cash transferred into your program
account, purchased at AIC, or at another broker/dealer, are subject to the investment advisory fee agreed upon in your advisory agreement.
Certain holdings may be excluded from billing as well. You should discuss fee exclusions with your IAR prior to opening an account.
In addition to the IAR fee, you will pay transaction fees for all trades within your account. Transaction fees include AIC’s cost based on its
clearing firm’s fee schedule and a mark up to compensate AIC for the cost of processing the transactions and to add to AIC’s revenues. In
addition to the above, AIC will charge a confirmation fee for all transactions except no-transaction-fee funds, mutual fund exchanges, and
periodic investment/systematic withdrawal plans. If you choose to have confirmations sent to you via mail the confirmation fee is $6.00 per
trade and $3.00 per trade if sent electronically.
Transaction fees are outlined in the brokerage account agreement you sign with AIC when you establish your advisory account and are subject
to change upon 30 days’ notice to you. Please refer to the sections “Other Fees” and “Compensation for the Sale of Securities or Other
Investment Products” at the end of this Item 5 for additional information.
Your IAR may choose to pay the transaction fees associated with your account. This decision to pay transaction fees on your behalf may be
based on a variety of factors such as the level of trading in your account, the size of your account and your overall relationship with the IAR.
Galaxy Wrap Fee Program
You will pay an annualized fee based on your account value as reported by the custodian of your account. This fee includes all fees and
charges for the services of your IAR and transaction fees associated with the purchase and sale of investments in your account. The
annualized fee does not include 1) fees for services provided by broker-dealers other than NFS for transactions executed by or through them
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