ITEM 5 – FEES AND COMPENSATION
ASSET MANAGEMENT SERVICES PROGRAM
We offer Asset Management Services Program accounts where no separate transaction charges apply, and a single
fee is paid for all advisory services and transactions (“Wrap Account”). For certain wrap accounts, the wrap fee is
set-up so that the Advisory Representative pays the underlying ticket charges for securities transactions. When the
Advisory Representative pays the ticket charges, a conflict exists that the Advisory Representative will trade less
frequently which results in the Advisory Representative retaining a greater portion of the wrap fee. The Firm has
policies and procedures to monitor and reduce the risk of this occurring.
We also offer Asset Management Services Program accounts with separate advisory fees and transaction charges
(“Unwrapped Account”). As such, in addition to the monthly and quarterly account fee described below for advisory
services, you will also pay separate per-trade transaction charges.
You will pay a monthly or quarterly fee, in advance or arrears, based upon either the average daily balance (ADB)
or the period ending balance (PEB) of your account assets under management for the previous period. Your account
fees are negotiable and will be debited from your account by your custodian. On an exception basis, you can have
your management fees paid from other accounts or have us bill you directly by invoice. If you terminate your
participation in this program, you will be entitled to a pro-rata refund of any prepaid monthly or quarterly fees based
upon the number of days remaining in the month or quarter after the date upon which the notice of termination is
received.
APA IA Brochure 2024.2 Current as of June 27, 2024
Each of our Advisory Representatives negotiates his or her own account fee schedule.
Mutual funds and ETFs invested in the account have their own internal fees which are separate and distinct from
the program account fees (for more information on these fees, see the applicable fund prospectus).
For complete fee details, please refer to the Asset Management Services Program Brochure.
PARTICIPANT RETIREMENT PROGRAM
You pay management fees to the Firm and your Advisory Representative pursuant to the provisions of a client fee
schedule, with a maximum 3% annual fee charged. The fee can be a fixed percentage fee on the total assets in
your account or a tiered fee schedule where the percentage-based fee is lowered as assets in your accounts
increase. The exact fee charged or fee schedule used is disclosed prior to services being provided.
Fees are negotiated based on the complexity of your financial situation, the investment services to be provided, the
experience and standard fees charged by your Advisory Representative and the nature and total dollar value of
Plan Assets maintained in your account. The management fee covers only the investment management services
provided by us and does not include brokerage commissions or other costs associated with the purchase and sale
of securities, custodial fees, interest, taxes or other account expenses.
The Firm retains up to 25 basis points (0.25%) of the annual fee charged to your account for the administrative and
support services we provide. Although not required, we can bundle your related accounts to achieve a break on
management fees. Account bundling does not reduce our administrative fee; each account is priced separately for
purposes of the administrative fee. Account bundling can be done on accounts with the same fee schedule and
with clients in the same immediate family or under the same qualified plan. When accounts are bundled, the total
average daily balance (ADB) or total period ending balance (PEB) for all of the bundled accounts is used to
determine the applicable fee percentage from the client fee schedule. This percentage is then applied to each
account and a fee charged to each respectively.
Fees are calculated at the beginning of each period (monthly or quarterly) based on either the ADB or the PEB of
the account assets under management for the previous period. Frequency (monthly or quarterly) and basis (ADB
or PEB) will be disclosed in the fee schedule. Management fees will be billed either in advance or arrears, as
disclosed in the fee schedule, with the exception of the initial fee. The initial fee is billed in arrears based on the
number of days that services are provided during the first billing period. The FIrm retains the right to change the
basis (ADB or PEB) upon which the management fee is calculated and/or the timing of billing (advance or arrears).
At its discretion, the Firm and/or our Advisory Representative may exclude certain assets from the calculation of
management fees.
If your account has not maintained adequate cash in the account to pay management or other fees, the Firm
reserves the right to direct Fidelity Institutional Wealth Services to liquidate, at any time, a portion of other Plan
Assets to cover the charges. You should review the documents establishing the Fidelity account for details on the
tax reporting treatment of deducting management fees.
Depending upon the investment services provided, assets in excess of a threshold amount (as determined from
time to time by the Firm) deposited into or withdrawn from the account by you may be charged or refunded a pro-
rated portion of the management fee based on the number of days during the billing period the assets were held in
the account.
TRANSFERRED SSNAI ACCOUNTS
The maximum annual fee charged in the Transferred SSNAI Accounts is 3%. Our Advisory Representatives charge
either (1) a fixed flat percentage fee on the total assets in the account, (2) a tiered fee schedule where the fee is
calculated by applying different (decreasing) rates to different portions of the account (tiers) or (3) a linear fee where
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