ITEM 5 - FEES AND COMPENSATION
Investment Advisory Fees
Separate Account Management
Anfield Advisors bases its fees on a percentage of assets under management, hourly charges, and
retainer service fees.
Retainer Agreements may be priced based on the complexity of work, especially when asset
management is not the most significant part of the relationship. Fees for retainer agreements are
negotiated with each client and are typically charged as a fixed fee for a set of deliverables or on an
hourly basis, generally based on a rate of $250 per hour.
An annual advice fee for both general guidance on financial matters and financial planning services
is charged in addition to investment management and supervisory fees. The annual fee for advice
and financial planning services is 0.50% of assets under management (AUM) and payable quarterly in
advance.
The maximum fee Anfield Advisors will charge for investment management services is 2.5%.
Anfield Advisors also offers asset supervisory services in conjunction with other services. The annual
fee for asset supervisory services is payable quarterly in advance as a percentage of assets under
supervision (AUS), based on the following range: 0.10% to 1.00%. Fees for assets under supervision
are determined on a case-by-case basis. Alternatively, Anfield Advisors may enter into Retainer
Agreements with clients for asset supervisory services. All retainer fees for asset supervisory
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December 31, 2019
services are determined on a case-by-case basis.
We reserve the right to negotiate all fees and terms with clients. Lower fees for comparable services
may be available from other sources. Client and client’s immediate family accounts may be
aggregated for fee breakpoint purposes. At the Firm’s discretion, advisory services may be provided
without charge to employees and their family members. Investment management fees are based
on the market value of assets in the account on the last business day of the previous quarter. At the
inception of the account, the fee will be prorated for the remainder of the current billing period
and will be based on the value of the account as of the date when the majority of assets are
transferred.
Consulting Services
Fees for Anfield Advisors’ customized consultation regarding economic and market outlook,
investment strategy, security selection, and financial planning are charged depending on the
nature of the assignment:
Project consulting with a specific deliverable such as an economic outlook, portfolio strategy or
financial plan will be charged a fee as agreed between Anfield Advisors and the client. Project
consulting fees will generally range from $1,000 to $10,000, but may be more or less, depending
on the scope of the services provided. Open-ended consulting assignment: $250 per hour. Fees
are payable 50% upon acceptance of assignment, based on forecast effort for open-ended
consulting, with balance due on completion (adjusted for actual time where applicable).
Speaking honoraria and travel expenses are negotiated on a case-by-case basis and payable in
advance.
Additional Compensation from Investments in Funds Advised and Sub-Advised by Affiliate Anfield
Capital Management, LLC
ACM is the investment adviser or sub-adviser for various registered investment companies (the “Funds”).
From time to time ACM may invest all or part of your assets, sub-advised by ACM, in the Funds. The fees
received by ACM for management of the Funds, including the portion of such fees corresponding to the
amount of client assets invested in the Funds, are separate from and in addition to the investment
management fee paid to AA by clients for management of the overall relationship.
This presents a conflict of interest, since our relationship with ACM creates an incentive for us to retain
ACM as a sub-adviser and for ACM to invest client assets in the Funds. However, we will only retain ACM,
and ACM will only invest client assets in the Funds, if we believe the investment to be in the client’s best
interests, considering the client’s objectives, risk tolerance, limitations and capital available for
investment.
Other Fees and Expenses
Anfield Advisors’ fees do not include custodian fees. Clients pay all brokerage commissions, stock transfer
fees, margin charges, foreign exchange and settlement fees, and/or other charges incurred in connection
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December 31, 2019
with transactions in accounts, from the assets in the account. These charges are in addition to the fees
client pays to us. See Item 12 - Brokerage Practices below for more information on the factors that we
consider in selecting or recommending broker-dealers for client transactions and determining the
reasonableness of their compensation.
In addition, any mutual fund shares held in a client’s account might be subject to deferred sales
charges, 12b-1 fees, early redemption fees, and other fund-related expenses. The fund’s prospectus
fully describes the fees and expenses. All fees paid to Anfield Advisors for investment advisory
services are separate and distinct from the fees and expenses charged by mutual funds. Mutual
funds pay advisory fees to their managers, which are indirectly charged to all holders of the mutual
fund shares. Consequently, clients with mutual funds in their portfolios are effectively paying both
Anfield Advisors and the mutual fund manager for the management of their assets.
Termination
Accounts may be terminated in accordance with the provisions set forth in the agreement – at any
time by written notice. Terminated accounts are credited the pro-rata unearned portion of fees for
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