Item 5: Fees and Compensation
A. Methods of Compensation and Fee Schedule
Wealth Management Services Fees
Wealth management advisory fees are paid quarterly, in advance of each calendar quarter,
pursuant to the terms of the Wealth Management Advisory Agreement. Wealth management
advisory fees are based on the fair market value of portfolio assets under management at the
end of the preceding quarter-end. Our firm bills on cash unless disclosed otherwise. Wealth
management advisory fees are charged at an annual rate of up to 1.00% and are based on
several factors, including the complexity of the services to be provided, the level of assets to be
managed, and the overall relationship with the firm. Relationships with multiple objectives,
specific reporting requirements, portfolio restrictions, and other complexities may be charged a
higher fee. The wealth management advisory fee in the first quarter of service is prorated from
the inception date of the account(s) to the end of the first quarter.
Fees may be negotiable at the sole discretion of the firm. The client’s fees will take into
consideration the aggregate assets under management with the firm. ACP generally requires a
minimum account size of $500,000. ACP, in its sole discretion, may waive the required minimum.
Financial Planning/Family Office Services Fees
Comprehensive Financial Planning Services will have an annual fee based on the scope and
complexity of the engagement. Such services and fees will be negotiated and memorialized in
written financial planning agreement prior to commencement of the engagement. The fees for
this service are assessed as follows:
� For pro-athletes, it is 1% of the annual contract value as provided by the client.
� For exonerees, it is 1% of the gross settlement amount less the amount of the settlement
committed to asset management.
� For all others, it is 1% of their net worth as provided by the client.
Comprehensive Financial Planning/Family Office Services fees will be custom to each individual
client and negotiated on an individual basis.
Sub-adviser Fees
Sub-advisory services will be executed through ACP’s written agreement between the client.
Selected sub-advisors may charge fees in addition to ACP’s fee.
Clients authorize ACP and the sub-advisers to deduct the management fee directly from the
account(s) where such assets are held, pursuant to applicable custody rules. It is the client’s
responsibility to verify the accuracy of the calculation of the management fee; the custodian will
not do so.
B. Client Payment of Fees
Wealth Management Services
ACP generally requires fees to be prepaid on a quarterly basis. ACP requires clients to authorize
the direct debit of fees from their accounts. Exceptions may be granted subject to the firm’s
consent for clients to be billed directly for our fees. For directly debited fees, the custodian’s
periodic statements will show each fee deduction from the account. Clients may withdraw this
authorization for direct billing of these fees at any time by notifying us or their custodian in
writing.
ACP will deduct its advisory fees directly from the client’s account provided that (i) the client
provides written authorization to the qualified custodian, and (ii) the qualified custodian sends
the client a statement, at least quarterly, indicating all amounts disbursed from the account. The
client is responsible for verifying the accuracy of the fee calculation, as the client’s custodian will
not verify the calculation.
The wealth management agreement may be terminated, at any time, by either party, by written
notice to the other party. In addition, the client may terminate within five (5) business days of
signing the agreement at no cost to the client. After the five-day period, the client will be
responsible for fees incurred to the date of the termination. The firm will refund any unearned,
prepaid fees from the effective date of termination to the end of the quarter.
Financial Planning/Family Office Services
The terms and conditions of the financial planning engagement are set forth in the client
agreement. Clients will be billed quarterly in advance. For exonerees awaiting receipt of financial
settlement, fees will begin accruing upon execution of the agreement and all fees accrued will
be due to the firm immediately upon receipt of their settlement monies.
The firm does not take receipt of $500 or more in prepaid fees in excess of six months in
advance of services rendered.
The financial planning agreement may be terminated, at any time, by either party, by written
notice to the other party. In addition, the client may terminate within five (5) business days of
signing the agreement at no cost to the client. After the five-day period, the client will be
responsible for fees incurred to the date of the termination. The firm will refund any unearned,
prepaid fees from the effective date of termination to the end of the quarter. Upon termination,
the client will incur charges for services rendered to the point of termination based on the
number of days worked. Any prepaid fees exceeding the amount due to ACP for services
rendered shall be refunded to the client.
C. Additional Client Fees Charged
All fees paid for investment advisory services are separate and distinct from the fees and
expenses charged by exchange-traded funds, mutual funds, separate account managers, private
placement, pooled investment vehicles, broker-dealers, and custodians retained by clients. Such
fees and expenses are described in each exchange-traded fund and mutual fund’s prospectus,
each separate account manager’s Form ADV and Brochure and Brochure Supplement or similar
disclosure statement, each private placement or pooled investment vehicle’s confidential
offering memoranda, and by any broker-dealer or custodian retained by the client. Clients are
advised to read these materials carefully before investing. If a mutual fund also imposes sales
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