Item 5 - Fees and Compensation
Brightworth provides investment advisory services on a discretionary basis. Annual asset management
fees are based on the standard schedule below:
0.30% per annum for amounts greater than $10,000,000
0.50% per annum for amounts greater than $5,000,000 up to $10,000,000
0.75% per annum for amounts greater than $2,500,000 up to $5,000,000
1.00% per annum for the first $2,500,000
Clients will be billed in advance at the beginning of each rolling 3-month billing period adjusted for
material cash inflows and outflows. The fee will be a percentage of the market value of assets in the
client’s accounts on the last trading day prior to the billing date, according to the fee schedule above.
Fees for the time-period preceding the initial billing date, will be pro-rated on the basis of the number of
days the assets are in the account.
In general, for individuals who became Brightworth clients prior to June 6, 2016, fees are generally
charged in arrears.
Brightworth’s fee is negotiable in limited circumstances only. For example, Brightworth charges fees
that are lower than the current fee schedule for clients who joined Brightworth when a previous fee
schedule was in place. The specific fee schedule will be agreed upon and disclosed in each individual
client’s investment management agreement prior to services being provided. Clients typically authorize
Brightworth to deduct fees automatically from their investment accounts. Certain existing clients have
engaged the firm under previously applicable fee schedules which are generally lower and/or contain
different breakpoints than those disclosed above. These legacy fee schedules are no longer offered or
available to new clients. Additionally, family members and limited approved acquaintances of the
associated persons of our firm have received discounts to our investment advisory fee.
Brightworth’s minimum annual investment management fee is typically $10,000 (1% * $1,000,000).
Brightworth will waive or reduce this minimum at the discretion of the President of Wealth
Management. Brightworth will sometimes work with clients who do not meet the current investment
minimum, when Brightworth expects the client to accumulate and invest additional assets over time
that will meet or exceed $1,000,000 within five years or less.
Additionally, when multiple related-party interests are managed, we group certain related client
accounts for the purposes of achieving the minimum account size and determining the annual fee.
Brightworth’s investment management fees are separate from the external or internal fees and
expenses that separate account money managers, mutual funds, exchange traded funds, custodians,
private partnerships, etc. charge to clients. Clients also will incur custodial fees and transaction costs to
purchase and/or hold stocks, bonds, mutual funds, exchange traded funds, partnership interests or
other securities. (Please review the information below under Brokerage Practices and visit the
custodians’ websites for current pricing.)
The mutual funds that Brightworth invests in for our clients are no-load funds. Clients will incur short-
term redemption fees if funds are redeemed within 30-90 days depending on the specific mutual fund
and share class. Brightworth does not receive 12b-1 fees or any other sales load in the course of
investing our clients’ portfolios. A complete explanation of expenses charged by each separate account
manager, mutual fund, exchange traded fund, or partnership is contained in the appropriate marketing
materials, Form ADV, mutual fund prospectus, private placement memorandum and/or other
documents. Clients should carefully review all documentation to fully understand the total amount of
fees to be paid by the client and to thereby evaluate the advisory services being provided.
Fees for an initial Wealth Plan will vary based on the scope and complexity of the financial analyses to
be completed. Brightworth does not require a prepayment of fees six or more months in advance.
When a financial planning service engagement is terminated (by either the client or Brightworth) prior
to the end of the agreement, the client will pay Brightworth’s fee for the time spent on the client’s plan
at Brightworth’s current rates. Clients can terminate any agreement without penalty within five
business days after entering into any agreement.
Wealth Planning and Investment Management services can be terminated without penalty at any time
by written notice of either party. If investment management services for which fees are paid in advance
are terminated before the end of the billing period for which fees have been paid, we shall refund the
pro-rated balance of any unearned portion of the fee. The pro rata refund will be calculated on the total
number of calendar days remaining in the billing period after the date of the effective date of
termination. Refunds of advance payments owed back to you shall be paid as soon as reasonably
possible but not sooner than ten (10) business days after receipt of termination notice.
Family Office Services
Each service offered by CIPW FOS is separate and distinct from the services offered by our firm and will
be under a separate agreement. These fees are in addition to our advisory and financial planning fees.
The fee charged for family office services may be higher or lower than the fees charged by independent
third parties for similar services. A fee schedule and written agreement will be provided to each client
before engaging CIPW FOS for services.