Item 5 – Fees and Compensation
Consulting Fees
Investment consulting services are typically provided pursuant to a fixed fee, more fully
described in the Investment Consulting Agreement.
Investment Management Fees
For investment management services, we will generally bill our fees in advance on a quarterly
basis based upon the value of assets under management on the last day of the previous quarter,
and as more fully described in the Agreement. The Agreement and/or the separate agreement
with any financial institution(s) may authorize us through the financial institution(s) to debit a
client’s account for the amount of our fee and to directly remit that management fee in
accordance with applicable custody rules. The custodian does not validate or check our fee or its
calculation on the assets on which the fee is based. The financial institution(s) recommended by
us have agreed to send a statement to the client, at least quarterly, indicating all amounts
disbursed from the account including the amount of management fees paid directly to us.
A client may make additions to and withdrawals from the account at any time, subject to our
right to terminate an account. Clients may withdraw account assets on notice to us, subject to the
usual and customary securities settlement procedures. However, we design our portfolios as
long-term investments and asset withdrawals impair the achievement of a client’s investment
objectives.
For the initial quarter of investment management services, the first quarter’s fees shall be
calculated on a pro rata basis. The Agreement between Ascent and the client will continue in
effect until terminated by either party pursuant to the terms of the Agreement. Our annual fee
shall be prorated through the date of termination and any remaining balance shall be charged or
refunded to the client, as appropriate, in a timely manner.
Additions may be in cash or securities provided that we reserve the right to liquidate any
transferred securities, or decline to accept particular securities into a client’s account. We may
consult with our clients about the options and ramifications of transferring securities. However,
clients are advised that when transferred securities are liquidated, they are subject to transaction
fees, fees assessed at the mutual fund level (i.e. contingent deferred sales charge) and/or tax
ramifications.
Investment management fees will vary based on the client but will generally be up to 0.35% of
assets under management per annum. Fee arrangements are subject to negotiation. Please see
your Agreement for the fees applicable to your account.
Additional Fees and Expenses
In connection with Ascent’s advisory services, clients will incur and are responsible for the fees
and expenses charged by their custodians and imposed by broker-dealers and third party
managers. Such fees may include, but are not limited to custodial fees, transaction costs, fees for
duplicate statements and transaction confirmations, brokerage commissions, and fees for reports.
Item 12 further describes the factors that we consider in selecting broker-dealers for client
transactions and determining the reasonableness of their compensation (e.g., commissions).