ITEM 5: FEES AND COMPENSATION
Advisory Fees (For accounts opened after March 1, 2024)
AVESTAR ADVISORY BASE FEES: The fees below are applicable to Avestar Internally Managed Strategies, as
well as the base fee for 3Alpha strategies. *
Assets Under Management Fee
Up to $1 million 1.5%
$1 million to $5 million 1.25
$5 million to $10 million 1%
$10 million to $15 million .75%
$15 million to $25 million .65%
$25 million and above .55%
3ALPHA STRATEGIES FEES: The fees for 3Alpha custom strategies are in addition to the Avestar Base Advisory
Fee.
Fees for 3Alpha strategies (as discussed in Item #4), range from 10 basis points to 100 basis points, depending on
the complexity of the strategy and leverage used.
* Avestar Base Advisory Fees for Avestar Internally Managed and 3Alpha strategies do not include an additional 2
basis point Technology Fee as described below. The Base Advisory Fee does not include fees and expenses charged
by the Custodian. Please see the “Additional Fees and Expenses” section below.
Advisory Fee Calculation & Deduction
Advisory fees are charged quarterly in advance. The Advisory Fee is calculated on the value of your account on
end of period snapshot. It takes the value of the billing level as of the last day of the given period. The Advisory
Fee is negotiable, depending on individual Client AUM and circumstances.
We can 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.
In very limited circumstances and depending on the size and scope of the relationship, we may charge a flat fee
for advisory services instead of a percentage of assets under management. This fee will be disclosed in your IAA.
We will deduct the Advisory Fee directly from your account through the qualified custodian holding your funds
and securities.
We will deduct the Advisory Fee only when you have given us written authorization permitting the fees to be paid
directly from your account. For discretionary accounts, in the event that there is not sufficient cash in the Account
to pay the Advisory Fee, the Adviser is authorized to sell assets to pay the Advisory Fee. The qualified custodian
will deliver an account statement to you at least quarterly. These account statements will show all contributions
and disbursements from your account. You should review all statements for accuracy.
You may terminate the IAA upon 30 days written notice. You will incur a pro rata charge for services rendered
prior to the termination of the IAA, 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 promptly receive a prorated refund of those fees.
In addition to or combined with the Advisory Fees outlined above, Avestar charges a .02 % (2 bps) Technology
Fee, which covers the costs that our portfolio accounting system charges to maintain your account and run
performance reports.
SELECTION OF OTHER ADVISERS
We offer discretionary investment advisory services through one or more third-party Sub-Advisors (“Sub-
Advisor”). If you engage us for investment advisory services, we require an executed Investment Advisory
Agreement (“IAA”). The IAA outlines the services and fees you will incur for our services. Upon execution of the
IAA, we will work closely with you to identify your specific needs and objectives and the suitability of the strategies
offered by the Sub-Advisor.
As part of our discretionary authority, we retain the ability to hire and fire any Sub-Advisor as necessary to best
service your account(s). We review several factors when determining which Sub-Advisor is most suitable for you.
The fees and expenses associated with the third party Sub-Advisors are disclosed in each respective Sub-Advisors
Form ADV Part 2A, a copy of which you will receive upon your engagement with us.
FAMILY OFFICE SERVICES (“FOS”)
We charge a flat rate for family office services, which is negotiable depending on the scope of services. Generally,
our minimum fee for such service starts at $2500 and varies depending on the complexity of your engagement
with us and we may charge additional fees at year end as a true up based on our IAA. An estimate of the total
cost will be determined at the start of the relationship. In addition, we may charge out of pocket expenses for
any third-party service providers we may engage to assist in execution of the services we provide to you. You
may terminate the family office services agreement upon 90 days written notice to us. Family office services are
non-advisory. We do not provide investment advice or ongoing supervisory management of your accounts that
are under an FOS agreement. However, if you have executed an IAA in conjunction with an FOS agreement,
accounts subject to the IAA will be managed in accordance with the terms of the IAA.
DUE DILIGENCE SERVICES
Fees for Due Diligence Services range from $2500 to $15,000 depending on the scope and complexity of the
products requiring due diligence. We may outsource our due diligence services to a third-party or conduct it
internally depending on the scope and complexity of the product.
MODEL PORTFOLIOS
In cases where Avestar utilizes a third-party model to implement a client portfolio, fees are typically 50 basis
...