Item 5 – Fees and Compensation
In addition to the information provided in Item 4 – Advisory Business, this section provides additional
details regarding our firm’s services along with descriptions of each service’s fees and compensation
arrangements. It should be noted that lower fees for comparable service may be available from other
sources. The exact fees and other terms will be outlined in the agreement between you and the firm.
Asset Management Services
Fees charged for our asset management services provided through a Third-Party Manager are
charged based on a percentage of assets under management, billed in advance (at the start of the
billing period) on a quarterly calendar basis and calculated based on the fair market value of your
Account as of the last business day of the previous billing period.
Fees are pro-rated (based on the number of days service is provided during the initial billing period)
for your account opened at any time other than the beginning of the billing period. If asset
management services are commenced in the middle of a billing period, the prorated fee for the initial
billing period is billed in arrears at the same time as the next full billing period’s fee is billed.
The asset management services continue in effect until terminated by either party (i.e., the firm or
you) by providing written notice of termination to the other party. Any prepaid, unearned fees will
be promptly refunded by the firm to you. Fee refunds will be determined on a pro rata basis using
the number of days services are actually provided during the final period.
ASGIM charges an investment advisory fee which is separate from and in addition to the
Platform and TPMs charge. Clients are generally charged an annual fee based upon the amount
of assets under management, which is calculated using the following tiered fee schedule*:
Assets Under Management Annual Fee of ASGIM
$1.00 – $750,000 1.00%
$750,001 – $1,500,000 0.90%
$1,500,001 – $2,000,000 0.75%
$2,000,001 and up Negotiable
The tiered fee schedule assesses different fees for each tier. For example, if a client has $1,500,000 in assets
managed with ASGIM, the first $750,000 is charged 1.00% and the next $750,000 is charged 0.90%, resulting in a
blended fee of 0.95%.
Negotiability and Variability of Advisory Fees
Although ASGIM has an established investment advisory fee schedule, we retain the discretion to
determine the appropriate advisory fee on a client-by-client or account-by-account basis and a client may
pay more or less than the fee charged to a substantially similar client. ASGIM considers each client’s facts,
circumstances, and needs in determining the fee schedule. These considerations include the complexity of
the client's situation, additional assets anticipated or prior assets received, the client’s relationship with the
investment adviser representative, reporting requirements, and other facts. Actual fees charged are
negotiable and detailed in each client’s Asset Management Agreement with ASGIM.
Clients are subject to the advisory fees in effect at the time they enter into the advisory relationship with
ASGIM. Since certain accounts pay fees from previously established fee schedules, the firm’s fees differ
among clients.
Additional Fees
In addition to ASGIM’s management fee, you will incur fees charged by the Platform provider.
Currently, ASGIM uses the AssetMark Platform to manage client accounts. AssetMark’s fees include the
management fees charged by the third-party manager(s) managing client accounts via the Platform; all
transaction costs related to the management of your account; custodial fees; and the cost of quarterly
reporting and online access to account information. The management fees charged by different third-
party managers available on the Platform differ, and so a change in the third-party manager(s) used will at
times increase or decrease the total fees charged by AssetMark; however, such changes will have no impact
on ASGIM’s fee.
All fees, including Platform fees and ASGIM’s management fees, will be charged and collected by
AssetMark, who will be responsible for forwarding ASGIM our portion of the management fee. Fees are
deducted directly from the client’s account. Generally, AssetMark's fees and, by extension, ASGIM’s
fees, are prorated and paid quarterly, in advance, based upon the market value of the assets on the last
business day of the previous quarter. For the initial billing period, the fee is prorated for the remainder of
the quarter (if services commenced in the middle of a calendar quarter), this pro-rated fee is billed on the
first business day of the month following the commencement of services. Fees and compensation for
using the AssetMark Platform, are provided in more detail in the AssetMark Platform Disclosure Brochure,
which is provided to clients when they enter into a Client Service Agreement with ASGIM. Other Platform
providers may offer similar services for fees which are more or less than those charged by AssetMark.
Additional fees not included in ASGIM’s or AssetMark’s fees include margin costs, embedded fees and
expense ratio charges imposed directly by a mutual fund or ETF in a Client’s account, as disclosed in the
fund’s prospectus (e.g., fund management fees and other fund expenses), transfer taxes, wire transfer and
electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions.
You should review your account statements received from the qualified custodian(s) and verify that
appropriate investment advisory fees are being deducted. The qualified custodian(s) will not verify
the accuracy of the investment advisory fees deducted.
IRA Rollover Recommendation Fees
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