Item 5 Fees and Compensation
Portfolio Management Services
Our fee for portfolio management services is based on a percentage of your assets we manage and is
set forth in the following fee schedule:
Assets Under Management Annual Fee
First $1,000,000 1.00%
Over $1,000,000 0.75%
The minimum annual fee is $500. Our advisory fee is negotiable, depending on individual client
circumstances. In some circumstances and at our sole discretion, we may agree to an annual flat fee
for portfolio managment services. Current client relationships may exist where the fees are different
from the fee schedule above.
Our annual portfolio management fee is billed and payable quarterly in advance based on the value of
your account on the last day of the previous quarter.
©2012 National Compliance Services 800-800-3204
If the portfolio management agreement is executed at any time other than the first day of a calendar
quarter, our fees will apply on a pro rata basis, which means that the advisory fee is payable in
proportion to the number of days in the quarter for which you are a client.
At our discretion, we may combine the account values of family members living in the same household
to determine the applicable advisory fee. For example, we may combine account values for you and
your minor children, joint accounts with your spouse, and other types of related accounts. Combining
account values may increase the asset total, which may result in your paying a reduced advisory fee
based on the available breakpoints in our fee schedule stated above.
We will send an invoice and deduct our fee directly from your account through the qualified
custodian holding your funds and securities. We will deduct our advisory fee only when the
following requirements are met:
• You provide our firm with written authorization permitting the fees to be paid directly from your
account held by the qualified custodian.
• We send you an invoice showing the amount of the fee, the value of the assets on which the
fee is based, and the specific manner in which the fee was calculated.
• The qualified custodian agrees to send you a statement, at least quarterly, indicating all
amounts dispersed from your account including the amount of the advisory fee paid directly to
our firm.
You may terminate the portfolio management agreement upon written notice to our firm. You will incur
a pro rata charge for services rendered prior to the termination of the portfolio management
agreement, which means you will incur advisory fees only in proportion to the number of days in the
quarter for which you are a client. If you have pre-paid advisory fees that we have not yet earned, you
will receive a prorated refund of those fees.
We encourage you to reconcile our invoices with the statement(s) you receive from the qualified
custodian. If you find any inconsistent information between our invoice and the statement(s) you
receive from the qualified custodian please call our main office number located on the cover page of
this brochure.
Financial Planning Services
We charge an hourly fee of $100 for consultive financial planning services. If you require advice on a
single aspect of your finances, we offer single subject financial planning services at a flat rate based on
the hourly rate of $100. The flat rate is based upon an estimate of the total time/cost determined at the
start of the advisory relationship. In limited circumstances, the cost/time could potentially exceed the
initial estimate. In such cases, we will notify you and request that you approve the additional fee. Our
financial planning fees are negotiable depending on the scope and complexity of the plan, your
situation, and your financial objectives.
We require that you pay 50% of the fee in advance and the remaining portion upon the completion of
the services rendered. We will not require prepayment of a fee more than six months in advance and in
excess of $500.
You may terminate the financial planning agreement by providing written notice to our firm. You will
incur a pro rata charge for services rendered prior to the termination of the agreement. If you have pre-
paid advisory fees that we have not yet earned, you will receive a prorated refund of those fees.
©2012 National Compliance Services 800-800-3204
Other Fees
Custodians may charge transaction fees on purchases or sales of certain mutual funds and exchange-
traded funds. These transaction charges are usually small and incidental to the purchase or sale of a
security. The selection of the security is more important than the nominal fee that the custodian
charges to buy or sell the security.
Expense Ratios
Mutual funds generally charge a management fee for their services as investment managers. The
management fee is called an expense ratio. For example, an expense ratio of 0.50 means that the
mutual fund company charges 0.5% for their services. These fees are in addition to the fees paid
by you to Atlantes Financial Advisors Corp.
Performance figures quoted by mutual fund companies in various publications are after their fees have
been deducted.
Past Due Accounts and Termination of Agreement
Atlantes Financial Advisors Corp. reserves the right to stop work on any account that is more than 90
days overdue. In addition, Atlantes Financial Advisors Corp. reserves the right to terminate any
financial planning engagement where a client has willfully concealed or has refused to provide
pertinent information about financial situations when necessary and appropriate, in Atlantes Financial
Advisors Corp.'s judgment, to providing proper financial advice. Any unused portion of fees collected in
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