Item 5 – Fees and Compensation
Clients will be charged advisory fees in advance at the beginning of each calendar quarter
based upon the value (market value based on independent third-party sources or fair market
value in the absence of market value; client account balances on which Buckingham calculates
fees may vary from account custodial statements based on independent asset valuations and
other accounting variances, including mechanisms for including accrued interest in account
statements or timing of reporting) of the client's account(s) at the end of the previous quarter.
New accounts may be charged a pro-rated fee for the remainder of the quarter in which the
account is incepted. Certain client accounts may be billed in arrears based upon quarter end
market value. Advisory fees shall apply to accrued interest and shall apply to cash balances
unless negotiated or agreed upon otherwise.
Buckingham will request authority from clients to receive quarterly payments directly from the
client’s account(s) held by an independent qualified custodian. Clients must provide written
limited authorization to Buckingham to withdraw fees from account(s).
In circumstances where a significant portion of the client’s assets are not under Buckingham’s
direct management or where additional services are required, Buckingham may charge
additional fees, as appropriate. The amount charged varies and is based upon the level and
scope of services and/or assets. All fees are agreed to in advance in the client’s investment
advisory agreement.
As a fiduciary, we have duties of care and of loyalty to you and are subject to obligations
imposed on us by the federal and state securities laws. As a result, you have certain rights that
you cannot waive or limit by contract. Nothing in our agreement with you should be interpreted
as a limitation of our obligations under the federal and state securities laws or as a waiver of any
unwaivable rights you possess.
Generally, either the client or Buckingham can terminate the advisory agreement without penalty
upon thirty (30) day notice in writing to the other party. Upon termination of any agreement, any
prepaid, unearned fees will be promptly refunded. Termination of an agreement will not affect (a)
the validity of any action previously taken by Buckingham under the agreement; (b) liabilities or
obligations of the parties from transactions initiated before termination of the agreement; or (c)
the client’s obligation to pay advisor fees (pro-rated through the date of termination and thirty
(30) day notice period). On the termination of the agreement, Buckingham will have no
obligation to recommend or take any action with regard to the securities, cash or other
investments in a client’s account.
All fees paid to Buckingham are separate and distinct from the fees and expenses charged by
mutual funds and ETFs to their shareholders or the transaction fees charged by the custodian.
Mutual fund and ETF expenses are described in each fund's prospectus. These expenses will
generally include a management fee, other fund expenses, and possibly a distribution fee. A
client could invest in mutual funds or ETFs directly, without the services of Buckingham. In that
case, the client would not receive the services provided by Buckingham which are designed,
among other things, to assist the client in determining which mutual fund/ETF or funds are most
appropriate to each client's financial condition and objectives. Certain passively and/or
evidence-based managed mutual funds also may not be available to the client directly.
Accordingly, the client should review both the fees charged by the funds, the transaction fees
charged by the custodian, as well as the fees charged by Buckingham to fully understand the
total amount of fees to be paid by the client.
In certain circumstances, fees and account minimums will be negotiable based on family
relations, firm affiliations or individual circumstances. Associates of Buckingham are not charged
fees on either their personal accounts or accounts of immediate family members. Fees can also
be reduced if a client receives portions of services from another investment badvisor normally
performed by Buckingham. Buckingham has agreed to reimburse the annual membership fee
for clients who are members of the St. Louis Medical Society.
Advisory Services
The annual fee for Buckingham’s wealth management or asset management services is
typically charged on a quarterly basis and is based on a percentage of the assets under
management/advisement and typically ranges from 0.35% to 1.25% per year depending on the
size and complexity of the client's accounts as well as services required, specifically negotiated
fees and historically grandfathered fee schedules. Fees will typically be tiered and the fee is
calculated by applying a different fee rate to each corresponding range of account balance of
the portfolio. The specific fee schedule charged by Buckingham is established in a client’s
written agreement with Buckingham. Advisory fees shall apply to cash balances unless
negotiated or agreed upon otherwise. In certain limited circumstances, a client may also receive
income tax preparation, tax planning and/or tax compliance services as part of their advisory
fee. As agreed between Advisor and Client, in certain circumstances, individual Accounts for
immediate family members are aggregated, and the fee is charged based on the total value of
all family members’ Accounts.
For certain client relationships, a fixed fee rate is charged on a quarterly basis, in advance or in
arrears, in place of the percentage of assets under management/advisement outlined above.
These fees are customized with the client, are negotiable and the final fee schedule will be
memorialized in the client’s advisory agreement. Buckingham takes into account multiple factors
to determine this fixed fee rate which include but are not limited to, the services required,
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