Item 5 Fees and Compensation
INVESTMENT MANAGEMENT SERVICES FEES
The annualized fee for investment management services are charged as a percentage of managed
assets, according to the following schedule. Each office is able to determine its own fee schedule as
long as the maximum fees quoted below are not exceeded. Fees charged to similarly-situated clients
may differ from office to office, and some offices will typically charge less than others for similar
services. Clients are encouraged to review the typical fee schedule charged by the office with which
they work.
A minimum of $500,000 of assets under management is required for our portfolio management
services, although each office may establish a lower or higher minimum. Clients are encouraged to
review the minimum amount of assets required by the office with which they work.
The First $2,000,000 1.00% per annum
The Next $3,000,000 0.80% per annum
The Next $5,000,000 0.70% per annum
The Next $5,000,000 0.60% per annum
The Next $5,000,000 0.50% per annum
Over $20,000,000 0.45% per annum
Note: This fee schedule is effective January 1, 2020. Those who became clients prior to this date will
continue to be charged according to the fee schedule listed in their advisory agreement.
This account size may be negotiable under certain circumstances. BDO WA may group certain related
client accounts for the purposes of achieving the minimum account size and determining the
annualized fee.
Clients are typically invoiced, in advance, at the beginning of each calendar quarter based upon the
value (market value or fair market value in the absence of market value) of the client's account,
including accrued interest, at the end of the previous quarter, without regard to contributions or
withdrawals. However, fees for some clients will be adjusted for contributions and withdrawals to
the account during the billing period, based on the policy of that office.
Fees will be debited from the client’s account in accordance with the client authorization in the Client
Services Agreement or paid by check directly from the client. The Custodian will send Client a
quarterly statement showing all amounts paid from the Account, including all advisory fees paid by
Custodian to BDO WA.
In the event a client terminates his or her Investment Management Agreement with BDO WA, the
advisory fee for the calendar quarter in which the termination occurs will be pro-rated based on the
number of days that the Account was open during the quarter, and client will be refunded the
difference.
We encourage you to reconcile our invoices and statements 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 offices at 904.396.4015.
SELECTION AND MONITORING OF SEPARATE ACCOUNT MANAGERS’ FEES
Advisory fees charged by SAM(s) are separate and distinct from our advisory fees. Assets managed by
SAM(s) will be included in calculating our advisory fee, which is based on the fee schedule set forth in
the "Investment Management Services Fees" section in this brochure. Because SAM(s) typically also
charge asset-based fees, you generally will pay management fees more than once on the same assets
when a SAM is used. Advisory fees that you pay to the SAM(s) are established and payable in
accordance with the ADV Disclosure Brochure provided by each SAM to whom you are referred.
These fees may or may not be negotiable. You should review the recommended SAM's Form ADV Part
2A brochure and take into consideration the SAM’s fees along with our fees to determine the total
amount of fees associated with this program.
CONSULTING SERVICES FEES
Portfolio Aggregation and Reporting. The cost of this service is an annual flat fee that can range
from $15,000 to $1,000,000 per year based on the nature and complexity of the client’s
circumstances. Clients are invoiced in advance at the beginning of each calendar quarter. Clients will
be charged a one-time set-up fee ranging between $5,000 and $100,000 based on the nature and
complexity of the client’s circumstances.
Outsourced Chief Investment Officer. The cost for this service is a flat fee that can range from
$15,000 to $1,000,000 annually based on the complexity of the consulting arrangements we are hired
to perform. Typically, these consulting services will be billed in advance on a monthly or quarterly
basis as such services are completed. Clients will be charged a one-time set-up fee ranging between
$5,000 and $100,000 based on the nature and complexity of the client’s circumstances. These
consulting services can be terminated at any time.
Investment Policy and Strategy Development. The cost for this service is a flat fee with a minimum
of $15,000 based on the size, nature and complexity of the client’s account. Typically, the fee for
these consulting services will be billed in advance with services to be provided within six months.
Investment Manager Search. The cost for this service is a flat fee that can range from $15,000 to
$30,000 per manager search based on the size, nature and complexity of the client’s account.
Typically, the fee for these consulting services will be billed in advance with services to be provided
within six months.
Ongoing Independent Manager Performance Evaluation. The cost for this service is an annual flat
fee billed quarterly in advance.
The exact fee will be based on the size, nature and complexity of the client’s account and the manager
to be examined. Clients are invoiced in advance at the beginning of each calendar quarter.
...