Item 5 – Fees and Compensation
Barrett Capital Management, LLC is compensated based upon a percentage of assets under
management. Barrett Capital’s annual fee schedule is as follows:
1.50% = on the first $1,500,000
1.25% = on assets from $1,500,001 to $5,000,000
1.00% = on assets above $5,000,000
With respect to 529 Plan account advisory services, Barrett Capital assesses a 0.75%
annual fee, based upon the value of the 529 Plan account assets under Barrett Capital’s
management.
The client signs an Investment Advisory Agreement, which authorizes automatic
withdrawal of the management fee from the client’s brokerage account(s). The signed
agreement is kept in the client file. With respect to 529 Plan accounts, Barrett Capital will
either withdraw its fee from another account under Barrett Capital’s management or
directly invoice the client for the amount owed, as agreed.
Barrett Capital’s fee schedule is applied to the value of the accounts on the last day of the
quarter (March, June, September, and December), gross of any outstanding margin balance
(see discussion in Item 8 below). Fees are deducted quarterly in arrears. Management fees
are prorated for each capital contribution and withdrawal made during the applicable
calendar quarter. Accounts initiated or terminated during a calendar quarter are charged a
prorated fee.
Barrett Capital, in its sole discretion, may charge a lesser investment advisory fee than that
reflected in the above fee schedule based upon certain criteria (i.e., anticipated future
earning capacity, anticipated future additional assets, dollar amount of assets to be
managed, related accounts, account composition, prior fee schedules, competition,
negotiations with client, etc.). As result of the above, similarly situated clients could pay
different fees. In addition, similar advisory services may be available from other
investment advisers for similar or lower fees.
Once a contract has been signed, the contract can be terminated using written notice by
either party within the first five (5) business days without being charged a fee. Thereafter,
either party can terminate a contract by written notice and the client will incur a pro-rated
charge for services up to the date of termination.
Barrett Capital’s fees are exclusive of brokerage commissions, transaction fees, and other
related costs and expenses, which shall be incurred by the client. The client will incur
certain charges imposed by custodians, brokers, and other third parties, such as fees
charged by third party investment managers, custodial fees, 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. Mutual funds and exchange traded
funds also charge internal management fees, which are disclosed in a fund’s prospectus.
Such charges, fees and commissions are exclusive of and in addition to Barrett Capital’s fee,
and Barrett Capital does not receive any portion of these commissions, fees, and costs.
Item 12 further describes the factors that Barrett Capital considers in selecting or
recommending broker-dealers for client transactions and determining the reasonableness
of their compensation (e.g., commissions).