Item 5. Fees and Compensation
ACP offers its services on a fee basis, which may include fixed fees, as well as fees based upon assets under
management.
Investment Advisory and Management Fee
ACP provides investment advisory and management services for an annual fee based upon a percentage of the market
value of the assets being managed by ACP (Management Fee”). ACP’s investment adviser representatives (IAR’s)
may provide investment management and a variety of financial and wealth planning services (see Financial Planning
services described above) without charging an additional financial planning fee. ACP’s Management Fee is exclusive
of, and in addition to, investment management fees charged by Managers, brokerage commissions, transaction fees,
and other related costs and expenses, which are incurred by the client. ACP does not receive any portion of brokerage
commissions, transaction fees or other expenses charged by Custodians. No portion of the Management Fee shall be
based on capital gains or capital appreciation of the assets except as provided herein and provided for under the
Investment Advisers Act of 1940, as amended (the “Advisers Act”) and analogous state securities laws. The annual
Management Fee varies (typically between 0.50% and 2%) depending upon the market value of the assets under
management and the type of investment management and other planning services to be rendered and may be reduced
or waived at ACP’s sole discretion.
The Management Fee is charged quarterly in advance based on the value of the account at the end of the previous
quarter as determined by the custodian. The Management Fee for the initial quarter is calculated on a pro rata basis
commencing on the day the assets are initially designated to us for management. Clients may make additions to and
withdrawals from the account at any time, subject to our right to terminate an account. If funds are deposited to or
withdrawn from an account in an amount that collectively exceeds $10,000 after the inception of a quarter, the
Management Fee payable with respect to the deposited or withdrawn assets will billed prorated in arrears and applied
to the next quarterly billing cycle.
As noted above, Aveo’s advisory fees generally are paid in advance. Upon the termination of a client’s advisory
relationship, Aveo will issue a refund equal to any unearned management fee for the remainder of the quarter.
Generally, Aveo will make such refund to the client’s account at the client’s custodian, unless otherwise such process
is unavailable.
Financial Planning Fees
ACP IARs may charge financial planning fees separately for such services in addition to the agreed upon
Management Fee. Financial planning fees can be a negotiated flat or minimum annual fee or hourly fee. A
typical minimum or annual fee can range from $2,500 to $5,000, or hourly fees of between $150-$500 per hour.
Financial planning fees can be significantly higher depending on the complexity of the client’s needs and
financial situation. All fee arrangements are authorized in writing by each to ensure clients understand all fees
being charged. Such fees are in addition to any Management Fees set forth above and negotiated with each
client separately, unless otherwise set out in the Investment Management Agreement. To pay for such services,
clients may pay by check, ACH withdrawal from checking account, credit card, or provide us with written
authorization to debit an investment account on the client’s behalf.
Fees Charged by Financial Institutions & Managers
Clients may incur certain charges imposed by the Financial Institutions, Managers and other third parties such as
Manager fees, custodial fees, charges imposed directly by a mutual fund or ETF in the account, which are disclosed in
the fund’s prospectus (e.g., fund management fees and other fund expenses), deferred sales charges, odd-lot
differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage accounts and
securities transactions. Additionally, clients will generally incur brokerage commissions, transaction fees and platform
service fees. Such charges, fees and commissions are exclusive of and in addition to ACP’s Management Fee.
ACP’s Agreement and the separate agreement with any Financial Institutions may authorize ACP or Managers to debit
the client’s account for the amount of their respective fees and to directly remit that management fee to ACP or the
Managers. ACP directly deducts fees when available. Any Financial Institutions recommended by ACP have agreed
to send a statement to the client, at least quarterly, indicating all amounts disbursed from the account including the
amount of management fees paid directly to ACP.