ITEM 5: FEES AND COMPENSATION
Family Office Services - Fixed Fee
Fixed Fees for family office services generally range from $50,000 to $1,000,000 per year and are
negotiated with the client. Fixed Fees are based on the level of services to be offered to the client and
can be billed quarterly or semi-annually. Fixed Fees are billed both in advance and in arrears. The
terms and conditions of the services provided, and fees charged are agreed upon in writing by both the
client and Aspen Grove and described in the advisory agreement.
Once the client has chosen the preferred fee structure, fees will be determined based on the services to
be offered to the client.
A client may authorize its custodian(s) to deduct fees when due or may pay Aspen Grove by check or
electronic fund transfer. Clients will be provided with a statement, at least quarterly, from the
custodian reflecting a deduction of the fee. Clients are urged to also review statements provided by
the custodian, as the custodian does not perform a verification of fees. It is the client’s responsibility,
and we encourage you to verify this calculation.
Asset Management Services – Asset Based Fee
Asset Management Services client’s, pay Aspen Grove a management fee (“Management Fee”) based on a
percentage of assets under management, as valued by the custodian or Independent Manager. These
Management Fees range from .60%-.90% of assets under management and are payable quarterly in
advance. Certain accounts and/or assets may be excluded from the Management Fee.
Management Fees are deducted directly from a client’s account. Clients are provided with a
statement, at least quarterly, from the custodian reflecting a deduction of the Management Fee.
Clients are urged to also review statements provided by the custodian, as the custodian does not
perform a verification of Management Fees. Clients provide written authorization permitting
Management Fees to be deducted and paid directly from their account[s] held by the custodian as
part of the account forms provided by the custodian.
Clients may terminate the advisory relationship by providing written notice to Aspen Grove. We will prorate
the Fixed Fees earned through the termination date and send the client an invoice for the Fixed Fee due. In
the case of Fixed or Management Fees billed in advance, we will prorate the fees earned through the
termination date and send the client a reimbursement for the Fixed or Management Fees overpaid in
advance. However, should the client terminate the agreement within five (5) business days of signing the
contract, a full refund of any prepaid fees will be given. All fees may be negotiable at the discretion of the
adviser, in certain circumstances.
Other Costs Involved
In addition to our Fixed or Management Fees, the client is responsible for paying other fees and expenses
associated with their account. These fees and expenses may include, but are not limited to:
• Independent Manager fees;
• mutual fund loads, if applicable. These charges are paid to brokers as a form of
commission;
• management fees for ETFs (as defined in Item 8) and mutual funds. These are fees
charged by the managers of the ETF or mutual fund and are a portion of the expenses
of the ETF or mutual fund;
• management fees charged by managers of underlying investments, such as, hedge funds, private
equity funds or real estate;
• Private Fund expenses;
• custodial fees, brokerage commissions, transaction fees, and other maintenance fees charged by the
custodian and/or executing broker;
• reporting fees; and
• accounting and legal fees including certain tax and audit fees.
Aside from the Fixed or Management Fees, Aspen Grove does not receive compensation related to the
sale of clients’ securities or other investment products. Additional information about brokerage costs and
services is provided in “Item 12: Brokerage Practices.”
Private Fund Fees
Aspen Grove does not charge fees to its clients invested in the Private Funds. Clients invested in Private
Funds are responsible for paying the investment management fee of the Independent Manager(s) engaged
by each Private Fund to manage the Private Fund’s assets. These fees will differ among Independent
Managers and are subject to negotiation by Aspen Grove. The fees of Independent Managers retained by
the Private Funds are paid as an expense of the Private Fund and therefore, are reflected in the net asset
value of the Private Fund client’s capital account.
Private Fund Expenses
Generally, each client invested in the Private Funds will be charged a percentage of expenses borne by the
Private Funds equal to one (1) divided by the total number of investors. The Private Funds bear all costs
and expenses directly or indirectly related to their investments and operations, including, but not limited
to, (i) any out-of-pocket expenses related to making, holding and monitoring the Private Fund investment;
(ii) any extraordinary expenses (e.g., expenses related to litigation and indemnification); (iii) any research
and due diligence expenses, interest on borrowed money, financing and brokerage fees and expenses; (iv)
any expenses due to the Private Fund tax returns and Schedules K-1, custodial, legal and insurance
expenses, regulatory filing expenses, any taxes, fees or other governmental charges levied against the
Private Fund; (v) any attorneys’, accountants’ or consultants’ fees and disbursements incurred for and on
behalf of the Private Fund; (vi) any regulatory expenses (and damages); (vii) any expenses related to
insurance; (viii) any expenses incurred in connection with the winding up or liquidation of the Private
Fund; (ix) organizational and offering expenses of the Private Fund; and (x) any expenses incurred in
connection with the distributions to the investors and in connection with any meetings of the investors.