Item 5: Fees and Compensation
A. Fees Charged
All investment management clients will be required to execute an Investment Management Agreement
that will describe the type of management services to be provided and the fees, among other items.
Clients are advised that they may pay fees that are higher or lower than fees they may pay another
advisor for the same services. Clients are under no obligation at any time to engage or to continue to
engage, Wellfull for investment services.
Financial Planning
Separate fees may be charged for financial planning. In general, though, financial planning services,
including the amount of time required and the complexity of the relationship will be factors in
determining the client’s asset management fee.
Asset Management
Generally, fees vary from 0.00% to 2.00% per annum of the market value of a client’s assets managed
by Wellfull. Fees are negotiable, and the fee range stated is a guide. The fee chosen within that range
is determined in part by the nature of the account, including the size of the account, the complexity of
asset structures, the nature of the ongoing financial planning work needed for that client, the
complexity of the portfolio, and other factors that would be dependent upon the specific client.
In very limited circumstances, a fixed annual fee may be determined for asset management and/or
ongoing financial planning services. The amount of these fixed fees must be negotiable and not
predetermined, as these engagements would tend to be for large, complex family wealth structures.
American Funds
Wellfull has an agreement to establish investment advisory accounts directly through American Funds
in their F2 advisory share class funds. The fees are not billed by Wellfull. American Funds calculates
the fees and pays Wellfull. The fees are established by Wellfull and can range from 0% to 0.75%.
Retirement Plan Consulting Services
For plan sponsors, fees for consulting on retirement plan options vary from 0.10% to 1.00% per annum
of the market value of the plan’s assets under the direction of Wellfull. These are the only fees, either
direct or indirect, that Wellfull reasonably expects to receive from the plan. Fees are negotiable and
will be determined by the scope and nature of the services provided the size of the account, the
complexity of the plan document, and other factors.
For asset management clients with 401(k) or 403(b) plans, fees for choosing and monitoring plan
options will vary depending on the available options in the plan, the client’s needs, and the frequency
of desired monitoring. Retirement Plan Consulting fees are negotiable and are dependent on the nature
of the engagement at the sole discretion of Wellfull.
Pooled Investment Vehicles
Fees charged to pooled investment vehicles are as described in the vehicle’s respective private
placement memorandum. The fund’s Manager, in conjunction with Wellfull, may modify or waive the
fee arrangement for a given investor. Please see the fund’s private placement memorandum for specific
details.
B. Fee Payment
Fees will be debited directly from each client’s account. The advisory fee is paid quarterly in advance,
and the value used for the fee calculation is the last business day of the previous quarter. This means
that if your annual fee is 1.00%, we will take the previous quarter’s ending value, multiply the value
by 1.00%, and then divide by 4 to calculate our fee. To the extent there is cash in your account, it will
be included in the value to calculate fees only if the cash is part of an investment strategy. Each
quarter, once the calculation is made, we will instruct your account custodian to deduct the fee from
your account and remit it to Wellfull. While almost all our clients choose to have their fees debited
from their accounts, we will invoice clients upon request.
Clients whose fees are directly debited will provide written authorization to debit advisory fees from
their accounts held by a qualified custodian chosen by the client. Each month, the client will receive
a statement from their account custodian showing all transactions in their account, including the fee.
Wellfull’s general policy is not to adjust a client’s fee for deposits and withdrawals made during a
billing quarter, however, Wellfull reserves the right in its sole discretion to adjust a client’s fee for
large capital flows in the interest of both parties.
American Funds
For clients whose accounts are held directly at American Funds, fees will be debited directly from each
client’s account by the American Funds Service Company. The fee is paid quarterly, in arrears, at the
end of the last business day of February, May, August, and November. The fee shall be calculated by
multiplying the average daily net asset value of client assets during the quarter by the client’s annual
fee rate, then dividing by the number of days in the year and multiplying that number by days in that
quarter.
Annuities
For clients who own annuity contracts, Wellfull calculates the fee due and requests the fee amount be
deducted from the annuity contract to be paid to Wellfull directly from the insurance company that
holds the annuity contract.
C. Other Fees
There are a number of other fees that can be associated with holding and investing in securities, such
as transaction fees for the purchase or sale of a mutual fund or Exchange Traded Fund, or commissions
for the purchase or sale of stock. Expenses of a fund will not be included in management fees, as they
are deducted from the value of the shares by the mutual fund manager. When selecting mutual funds
that have multiple share classes for recommendation to clients, Wellfull will take into account the
internal fees and expenses associated with each share class, and it is Wellfull’s policy to choose the
most cost-effective share class available given the circumstances. For a complete discussion of
...