Item 5 Fees and Compensation
CAS is typically compensated for its investment advisory services by charging you a management fee based on the
market value of your assets under our management based upon the fee schedule set forth below:
Equity/Balanced/Fixed Income Accounts
• 1.00% on the first $5 million
• .75% on the next $5 million
• .50% above $10 million
Fees are typically billed quarterly in arrears based upon the market value of the assets at the end of the preceding
quarter, except for certain manually priced securities which may be valued on a more infrequent basis. In this
instance, a valuation other than the end of the preceding quarter may be used for fee billing purposes, including
holding the security at cost. Fees are typically billed on cash and cash sweep instruments but not typically billed on
assets designated as unmanaged. Certain legacy accounts may be billed differently than current client accounts.
Private and alternative investments will generally be valued at cost, unless the General Partner or Investment
Manager provides Advisor with material that clearly, in the Advisor’s reasonable discretion, demonstrates a market
value higher or lower than its cost, in which case such securities will be valued at such higher or lower amount as
reasonably determined by the Manager. If your relationship with us begun or ended during a calendar quarter, your
fee will be prorated for the appropriate number of days completed or remaining in the quarter and, where applicable,
you will be issued a refund for any portion of your quarterly fee paid in advance (such as in a wrap fee arrangement)
which was unearned.
You may pay your fee to us directly upon receipt of an invoice from us or you may authorize your custodian to allow
us to directly debit our fee from your account or accounts. If you choose the latter method, your custodian will not
confirm our fee but will pay the amount based on the fee amount communicated to the custodian by us and send it
directly to us. You will receive a periodic statement from your custodian which will include the amount of the fee
which has been sent to us. You should confirm the accuracy of our fee calculation upon receipt of your custodian’s
statement.
The fees you pay us do not include brokerage commissions or other fees or charges associated with securities
transactions implemented with or through a brokerage firm, mark-ups or mark-downs in principal transactions,
deferred sales charges, odd-lot differentials, stock exchange fees, wire transfer or related processing fees, transfer
taxes or other charges mandated by law or regulation all of which will be charged to you in addition to our fee. We
do not receive any portion of any of the foregoing expenses or fees. You should go to the section on Brokerage
Practices in our brochure for more information on how we select or recommend brokerage firms for your securities
transactions and information related to that process.
Our fee for our consulting services and investment advisory services for retirement plans and participants, as
described above in the section on Advisory Business, may be negotiated on a case by case basis.
You should understand that mutual funds (including exchange-traded funds) impose separate investment
management fees and other operating expenses, typically described in the fund’s prospectus, for which you, the
client, will be charged separately from the fee paid to us for our services.
As we discussed in the section on Advisory Services in our brochure, we have entered into “wrap fee” arrangements
with certain brokerage firms or other companies where you pay the brokerage firm or other company an agreed
upon fee for investment management by us or other investment advisory firms such as us brokerage commissions,
custodial services and possibly consulting services. We receive a portion of the “wrap fee” you pay the brokerage firm
for our services. Our portion of the fee generally ranges from 25 to 60 basis points of the assets we manage
depending upon our arrangement with the brokerage firm or other company that sponsors the wrap fee
arrangement.
CAS also serves in a sub advisory role or research provider for investment management firms, some of which may
be affiliated with us or other institutions. Please refer to the section on Other Financial Industry Activities and
Affiliations below for more information.
We primarily recommend “no load” mutual funds and exchange traded funds for our client portfolios, which are
mutual funds, sold without a commission or sales charge.
Clients should be aware that similar or comparable services may be available from other firms including other
investment management firms at a cost higher or lower than that available through us.
ClearAccess and Private Investment Fund Fees:
From time to time, the firm forms and offers partnership interests in closed-end private equity funds. For certain
qualified investors that make a large commitment, the level of the asset-based management fee may be reduced. If
carried interest applies, investors generally pay a percentage of profits after a return of contributed capital and a
preferred return. Fund investors will also incur an operations fee related to fund expenses. The Firm also manages
and advises on legacy funds no longer open to new investors. These partnerships charge different fees and/or
carried interest from those we would charge on newly formed partnerships. Additional information regarding fees
can be found in each fund’s private placement memorandum & Limited Partnership Agreement.
Clearstead does not charge a separate fee for the investment services provided to the Clearstead Global Equity
Fund, LLC (“CGEF”) and Smartsheet SPV, LLC (“SSPV”), and any expenses directly related to these funds are allocated
pro rata to each investor. Clearstead will include the value of these funds invested by Clearstead clients when
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