Item 5: Fees and Compensation
Advisory and Management Fees
The fees for both our nondiscretionary advisory services and our discretionary management services vary by
the type of client, assets under management, and/or the proposed project. Our advisory fee schedule is
negotiable, and we usually charge clients either a flat annual retainer fee, a percentage-of-assets fee, or a
combination of both, depending upon the scope of services provided to the client. Some of our clients are
grandfathered under a lower fee structure and we render some services pro bono and at material discounts.
Discretionary clients are generally charged a percentage of their assets under management. Fees are
determined for each client individually based on the scope of services provided and the needs of the client.
Nondiscretionary clients, including certain endowment and foundation clients, are generally charged a flat
annual retainer amount.
Cash Management:
Account minimums and fees for our cash management services are negotiable.
Project/Fixed Fees and Hourly Rates:
We offer standalone financial planning services to our clients pursuant to a written agreement. These services
are provided at varying levels depending on the nature and complexity of the client’s situation. The planning
or consulting may encompass one or more areas of need, including but not limited to financial goal setting,
debt management, estate planning, cash flow and budgeting, education funding, and retirement planning.
Fees for financial planning are either charged on a fixed basis or an hourly rate depending on the range of
services provided, the nature and size of the plan, and other relevant circumstances.
Our analyses will be highly dependent on certain economic assumptions about the future. Therefore, you
should establish familiarity with historical data regarding key assumptions such as inflation and investment
rates of return, as well as an understanding of how significantly these assumptions affect the results of our
analyses. We may counsel you as to the consistency of your assumptions with relevant historical data, but we
will not express any assurance as to the accuracy or reasonableness of your specific data and assumptions.
You are ultimately responsible for the assumptions and personal data upon which our procedures and
projections are based. The financial plan assumptions and reports are primarily a tool to alert you to certain
possibilities. The reports are not intended to, nor do they provide, any guarantee about future events
including your investment returns. The implementation of the plan is solely your responsibility.
Billing
Our management services are generally billed quarterly in arrears, but some clients pre-pay their quarterly
advisory fees. For fixed fee projects, we generally bill half of the total fee upon commencement of the project
and the remaining half upon completion. Hourly fees are generally billed on a monthly basis. All invoices are
due within thirty days of the invoice date.
Fees can be deducted from an account designated by you to facilitate billing — you must consent in advance
to direct debiting of your investment account. Note that payment of fees in this manner may result in the
liquidation of securities if there is insufficient cash in the account to pay the fees. Generally, should you
terminate your engagement of our firm during a quarter or project, for any reason, the fee for such quarter or
project is prorated and, in the case of accounts billed in advance, any pro rata unearned amount is refunded
within a commercially reasonable amount of time.
Form ADV Part 2A Page 6 of 20
Form ADV Part 2A
Arnerich Massena, Inc. CRD Number 116395 SEC File No. 801-61109
Other Fees or Expenses Paid in Connection with our Services
Fees paid to us for our services are separate from the fees and expenses that are charged to investors by
mutual funds, exchange-traded funds (“ETFs”), or other pooled investment vehicles, including private
investment funds. These fees are described in each investment fund’s prospectus or private offering
documents and generally include a separate management fee, fund expenses (such as administration, audit,
accounting, legal, etc.), and a possible distribution fee. Our fees also do not include fees charged by third
parties for brokerage or transactions associated with trades in your account or for custody of your assets.
These fees are usually detailed in contracts between you and the third parties providing those services. (See