Brown Financial Advisors LLC

Item 5: Fees and Compensation
Method of Compensation and Fee Schedule
Co-Adviser Fees
Gradient Investments, LLC (“GI”) SEC number 801-70812
BFA has entered into a Co-Advisor Agreement with Gradient Investments, LLC (“GI”). GI is a
Registered Investment Advisor registered with the Securities and Exchange Commission that
provides investment portfolio advice and supervisory services.
GI offers an actively managed program of mutual fund and stock portfolios. The fee will be
disclosed to the Client in the Investment Advisory Agreement and are negotiable. The Clients
fee for these services will be based on a percentage of assets under management as follows:
                                Asset        Stated Total                         BFA Fee
Portfolio                                                       GI Fee*
                                Valuation    Annual Fee                         (Negotiable)
Custom Indexing - Strategic     All Assets         1.55%        0.55%              1.00%
Strategic                       All Assets         1.40%        0.40%              1.00%
Custom Indexing - Allocation    All Assets         1.55%        0.55%              1.00%
Allocation                      All Assets         1.40%        0.40%              1.00%
Tactical                        All Assets         1.40%        0.40%              1.00%
Defined Outcome                 All Assets         1.40%        0.40%              1.00%
Private Wealth                  All Assets         1.40%        0.40%              1.00%
Preservation                    All Assets         1.00%        0.40%              0.60%
Client Directed Accounts        All Assets         $300          $300                  $0
For Client Directed Accounts (CDA), GI will assist in the opening, closing and transferring of
accounts. GI will not have discretion at any time on these accounts. Client is solely
responsible for the assets held within the accounts and their values which could increase or
decrease (potential loss of principal). GI will not execute trades in CDA accounts. GI

exceptions will be made for withdrawals to client or assets transferred into a GI managed
portfolio. GI will also provide performance reporting on these accounts and can furnish
3rd party analysis reports per the client’s request. Similar services may be available through
other sources for a lower fee.
These are flat fee schedules, the entire portfolio is charged the same asset management fee.
Example:
 Portfolio                                          Calculation                             Quarterly Fee
 Custom Indexing- Strategic & Allocation            ($750,000*1.55%) * (91/365) $2,898.29
 Strategic, Tactical, Allocation & Defined
                                                    ($750,000*1.40%) * (91/365) $2,617.81
 Outcome Portfolios
 Private Wealth Portfolio:                          ($750,000*1.5%) * (91/365)              $2,804.79
 Preservation Portfolio                             ($750,000*1.0%) * (91/365)              $1,869.86
Fee Calculation: (Quarter End Value x Annual Fee %) x (Days in Quarter/Days in Year) + $15
Quarterly Service Fee*

* The $15 Quarterly Service Fee is the technology fee charged per account or investment strategy
for performance and other reporting. This fee is disclosed in our ADV Part 2A (Item 5: Fees and
Compensation) and in our Investment Proposal and Contract (Schedule D: Schedule of Fees).

The above fees are negotiable. Fees are assessed quarterly in arrears based on the amount of the
assets managed as of the end of the previous quarter and will take into account additions and
withdrawals in the time period. All management fees are withdrawn from the Client’s account
unless otherwise noted. GI will receive written authorization from the Client to deduct advisory
fees from their account held by a qualified custodian. GI will pay BFA their share of the fees. BFA
does not have access to deduct Client fees. Clients may terminate their account within five (5)
business days of signing the investment advisory agreement without penalty or obligation. For
terminations after the initial five business days, GI will be entitled to a pro-rata fee for the days
service was provided in the final quarter. GI will pay BFA their portion of the final fee.
Incentive Program - GI
In addition to the regular advisory fee, GI has instituted a long-term incentive arrangement
by BFA can share in GI’s portion of the management fee. This does not change the cost to the
client; it is a sharing arrangement paid from GI’s portion of the advisory fee. The incentive
arrangement will be paid annually according to the following table:
             BFA quarterly AUM with GI                     Participation rate in GI’s fee
                   $10,000,000                                        3.00%
                   $25,000,000                                       10.00%
                   $50,000,000                                       12.50%
                   $75,000,000                                       15.00%
Once BFA reaches and maintains the thresholds listed above, the participation rate applies to
all of the AUM for the quarter.
To receive the incentive award, BFA needs to meet two qualifications. First, the quarter end
billable AUM must be above the threshold amounts specified. Second, Advisor must be an

advisor “in good standing” with GI at the time the annual checks are issued. “In good
standing” means the advisor is proactively placing assets with GI.
This relationship will be disclosed to the Client in each contract between BFA and Third
Party Money Manager. BFA does not charge additional management fees for Third Party
managed account services. Client's signature is required to confirm consent for services
within Third Party Investment Agreement. Client will initial BFA Investment Advisory
Agreement to acknowledge receipt of Third Party fee Schedule and required documents
including Form ADV Part 2 disclosures.
...

Item 7: Types of Clients
Description
BFA generally provides investment advice to individuals, trusts and high net worth
individuals. Client relationships vary in scope and length of service.
Account Minimums
BFA does not require a minimum to open an account.