Item 5 – Fees and Compensation
In consideration for our advisory services, we receive compensation as described below. In
our sole discretion, we may offer fee discounts or waivers. In no event will we collect fees in
excess of $1,200 six months or more in advance. In some cases, legacy clients and referrals
from legacy clients may have different fee schedules than those shown below. We review
legacy fee arrangements on at least an annual basis to ensure client fees are cost effective
based on the client’s circumstances. Your specific fee will be set forth in your advisory
agreement.
Wealth Management Services
For our Wealth Management Services and Portfolio Management Services, we typically
charge our clients a fee based on the amount of assets held in client accounts we manage.
In some instances, we charge on a fixed-fee basis, as more fully described below. All fee
arrangements and terms are detailed in each client’s advisory agreement.
Asset-Based Fee
Our asset-based fees are calculated based on the value of the client’s investments on the last
market date of the respective quarter and are payable quarterly in arrears, subject to a
minimum annual fee based on complexity starting at $7,200. The fee is a percentage of the
assets under management, according to the schedule below:
Assets Under Management Annualized Asset-Based Fee
$0.00 to $3,000,000.00 0.90% (90 basis points)
$3,000,000.01 and above 0.50% (50 basis points)
This is a blended fee schedule. This means the assets in your investment portfolio will be
billed at different levels according to the fee schedule above. For example, a client’s portfolio
with $4,000,000 in assets would be assessed an annualized fee of 0.90% on the first
$3,000,000, and 0.50% on the remaining amount. The annualized asset-based fee is
multiplied by the quarter-end value, then divided by four to determine the quarterly fee. This
example is provided for illustration only. Fees are based on your portfolio balance and thus
will fluctuate as your portfolio balance changes.
The fee is calculated on all assets in your investment account, including any cash or cash
equivalents. We bill quarterly in arrears (meaning after services have been rendered).
Advisory fees for partial quarters will be prorated based on the remaining days in the
reporting period in which our firm services the account. In addition, fees will be adjusted for
cash inflows and outflows (i.e., deposits or withdrawals of cash and receipts or transfers of
securities) that occur during the quarter, prorated by the number of days the assets were in
the account during the quarter. At the discretion of AWP, clients may pay all or a portion of
the wealth management fees with a credit card or ACH bank payment through a third-party
payment processor unrelated to AWP.
If we manage multiple accounts for you and members of your household, we may, in our
sole discretion, aggregate your accounts for purposes of determining the fee breakpoints
outlined in the table above.
All fee arrangements and terms are detailed in the investment advisory agreement we
execute with our clients. In this agreement we obtain authorization from you to deduct our
fees directly from your investment account(s). Clients will open their investment accounts
with a qualified broker-dealer and/or custodian. In the account opening documentation
clients also authorize the custodian to accept instruction from AWP (when and amount) to
deduct our fees from the client’s account(s). The custodian will deliver to the client an account
statement at least quarterly, reflecting deduction of the fee.
Clients may access their accounts at any time through the custodian’s on-line portal to review
the activity in their account(s) and the fees deducted.
Fees and fee schedules are negotiable considering factors such as the client’s financial
situation and circumstances, the amount of assets under management, and the complexity
of the services provided.
For the benefit of discounting your asset-based fee, at our discretion, we may aggregate
accounts for the same individual or two or more accounts within the same family, or where
we feel it is reasonable and or necessary.
Outside Manager Fees. When an Outside Manager is used to manage all or a portion of a
client’s investment portfolio, the Outside Manager charges an asset-based fee of up to 0.40%,
but which varies based on the investment strategy used. This fee is in addition to the asset-
based fee charged by AWP. Additional information regarding the Outside Manager’s services
and fees is outlined in its Disclosure Brochure.
Fixed Fee
When a fixed fee is agreed upon, the annual fee will be determined at the time the initial
advisory agreement is executed. The fee for the first year of services will be prorated by the
number of days remaining in the year. Fees are divided and billed into equal quarterly
payments and are due in arrears at the end of each quarter. Annual fixed fees are
determined based on the amount of the client’s assets, the complexity of the client’s financial
situation and the estimated amount of time needed throughout the year.
All fee arrangements and terms are detailed in the advisory agreement we execute with our
clients. In this agreement we obtain authorization from you to deduct our fees directly from
your investment account(s). Clients will open their investment accounts with a qualified
broker-dealer and/or custodian. In the account opening documentation clients also
authorize the custodian to accept instruction from AWP (when and amount) to deduct our
fees from the client’s account(s). The custodian will deliver to the client an account statement
at least quarterly, reflecting deduction of the fee.
Clients may access their accounts at any time through the custodian’s on-line portal to review
the activity in their account(s) and the fees deducted.
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