Item 5 Fees and Compensation
A. The annual fees for Investment Management (inclusive of the Financial Game Plan preparation and review) will be
charged as a percentage of assets under advisement, according to the schedule of our maximum fees below, but are
always negotiable. These are most typically charged on a quarterly basis, in advance and are listed in a separate line
item on the monthly statement for the month they occur in. These fees, deducted from the account by the custodian,
are then delivered to Capital Research Advisors by the custodian.
Assets under advisement Annual Fee
$0 - $1,000,000 Not Greater than 1.25%
$1,000,001- $3.000.000 Not Greater than 1.00%
$3.000,001 - $5,000,000 Not Greater than .90%
$5,000,001 - $7,500,000 Not Greater than .75%
Over $7,500,000 Negotiable
Hourly Rates by Partners at $375/hour
Hourly Rates by Staff at $150/hour
Please Note: Fee Differentials-Conflict of Interest. Each of CRA’s representatives separately determines the
amount of advisory fee to be paid by the client within the parameters of the fee schedule shown above, which could
present a conflict of interest. In addition, the CRA representative, in his/her sole discretion, may charge a fee less
than the maximum percentage advisory fee shown or may enter into alternative fee arrangements, such as hourly
engagements, based upon various criteria (i.e. anticipated future earning capacity, anticipated time needed to serve
client, anticipated future additional assets, related accounts, account composition, negotiations with client, etc.). No
client will be charged more than the reflected maximum annual percentage fee shown in the table above, excluding
the retention of any passed-through internal service fees provided to the custodian and passed on to the broker-
dealer, and a portion of this fee passed on to CRA.
The fees for CRA’s UMA Program are also asset-based, ranging from 0.25% to 0.575%. CRA and the UMA Program
sponsor usually negotiate the fee amount. The fee may vary depending on several factors, including the number of
model portfolios that the sponsor is purchasing and the total assets under management.
As a result of the above, similarly situated clients could pay diverse advisory fees. CRA’s advisory services could also
be available from other advisers at a lesser or greater annual percentage advisory fee. Each client should take this
potential fee differential into consideration when determining whether or not to engage CRA’s services.
CRA currently has an agreement(s) with “solicitor(s)” to refer clients to CRA. The agreements provide that a
percentage of the investment fee charged to the client will be paid to the solicitor, as disclosed in an addendum to
the CRA, LLC Client Advisory Agreement. The compensated person(s) are properly registered as a solicitor(s) as
appropriate.
Compensated solicitors do not give investment advice and only solicit clients for CRA within the State of Georgia.
CRA’s Chief Compliance Officer, Kenneth D. Graves, remains available to address any questions that a
client or prospective client may have regarding the above potential for fee differentials and
corresponding conflict of interest.
CRA may provide financial planning and consulting services for a separate fee and per the terms and conditions of a
Financial Planning and Consulting Agreement. CRA generally charges a negotiable hourly fee for such engagements.
B. CRA clients can choose to have their fees deducted from their accounts or billed to them directly. This choice is listed
distinctly and separately in our advisory agreement. If a direct fee deduction is elected, CRA will direct the custodian
to have fees disclosed in the management agreement deducted from the client's account and sent to CRA. These
fees are also shown as a line item entry on the statement(s) the client receives for the month the fee was deducted
from the account. Statements are sent monthly to the client(s).
C. All fees paid to CRA for investment advisory services are separate and distinct from the fees and expenses charged
by the custodian for its services, IRA fees, exchange fees or SEC mailing fees. They are also fully separate and distinct
from the fees and expenses charged by mutual funds, ETFs, closed-end funds, collective trusts, unit investment
trusts, as well as variable annuities and the fees they charge to their shareholders or unitholders and are in addition
to CRA fees. Those fees will generally include separate fees and expenses, which are described in each of those
product prospectuses. Those fees will include a management fee, other fund expenses and a possible distribution
fee or service fee. If the fund also imposes sales charges, a CRA client will obtain the fund at Net Asset Value (NAV),
meaning that the client will not pay the stated sales charge.
D. We most typically assess fees on a quarterly basis based on the market value of assets in an account as of the last
day of each calendar quarter, but we do have a limited number of clients that we assess fees on a monthly basis
instead. All client fees are earned on a pro-rata basis, meaning CRA is able to keep fees for the days money is in the
account, and we have written instructions to manage the agreed-upon assets. Either party may terminate the advisory
service agreement at any time for any reason with 30 days’ written notice. Upon termination, CRA shall refund the
pro-rated portion of the advanced advisory fee (if any) based on the number of days remaining in the billing period.
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