Item 5 Fees and Compensation
Portfolio Management Services
Brainard Capital Management is compensated for advisory services in the form of a fee based upon
assets under management or a minimum annual flat fee. Our minimum annual flat fee is $12,500.
Fees are negotiable. Our asset-based fee for portfolio management services is based on a percentage
of the assets in your account and is set forth in the following annual fee schedule:
Annual Fee Schedule
Assets Under Management Annual Fee
The first $0-5 MM .70
The next $5-10 MM .60
The next $10-20 MM .55
The next $20-30 MM .50
The next $30-40 MM .45
The next $40-50 MM .40
The next $50-100 MM .35
The next $100 MM .30
The fee will be the greater of: Adviser's minimum annual flat fee of $12,500 or calculated as a
percentage of the market value of all assets in Client's Account on the last trading day of each
calendar quarter, unless otherwise negotiated. The minimum annual fee could result in a higher than
average annual percentage; services similar to those offered by us may be available elsewhere for
more or less than the amounts we charge. Under no circumstances shall the minimum annual fee
exceed 3.00% of the Client's assets under management. If the account balance is at a level where the
minimum account fee would represent 3.00% or more of the Client's assets, the minimum account fee
shall be reduced to 2.99% of assets under management.
Our annual portfolio management fee is billed and payable quarterly in advance, based
on the balance at last trading day of the previous calendar quarter.
If the portfolio management agreement is executed at any time other than the first day of a calendar
quarter, our fees will apply on a pro rata basis, which means that the advisory fee is payable in
proportion to the number of days in the quarter for which you are a client. Our advisory fee is
negotiable, depending on individual client circumstances.
At our discretion, we may 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
based on the available breakpoints in our fee schedule stated above.
We will send you an invoice for the payment of our advisory fee if your account has this option, or we
will deduct our fee directly from your account through the qualified custodian holding your funds and
securities. We will deduct our advisory fee only when you have given our firm written authorization
permitting the fees to be paid directly from your account held by the qualified custodian. The qualified
custodian will deliver an account statement to you at least quarterly. These account statements will
show all disbursements from your account. You should review all custodial statements for accuracy.
In cases where we send you an invoice for the payment of the advisory fee, we encourage you to
reconcile our invoices 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 call our main office number located on the cover page of this brochure.
You may terminate the portfolio management agreement upon 30 days written notice. You will incur a
pro rata charge for services rendered prior to the termination of the portfolio management agreement,
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 receive
a prorated refund of those fees. Any refunds will be send by check to your address or reimbursed to
your custodial account.
Financial Consulting Services Fees
You may terminate the financial consulting agreement upon 30 days written notice to our firm. If you
have pre-paid financial consulting fees that we have not yet earned, you will receive a prorated refund
of those fees. If financial consulting fees are payable in arrears, you will be responsible for a prorated
fee based on services performed prior to termination of the financial consulting agreement.
Family Office and Wealth Planning Services
Our fee for Family Office and Wealth Planning services is a negotiated flat fee, determined based on
the complexity of each client's situation and circumstances.
You may terminate the family office and wealth planning services agreement upon 30 days written
notice to our firm. You will incur a pro rata charge for services rendered prior to the termination of the
agreement, 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 receive a prorated refund of those fees.
Third-Party Manager Fees
As stated in Item 4 Advisory Business, Brainard may recommend that you use the services of a third
party money manager ("TPMM") to manage all, or a portion of, your investment portfolio. For example,
we may refer you to a TPMM to implement an options strategy where the fees differ depending on the
strategy chosen. Your advisor will provide you with details on these fees.
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