Item 5: Fees and Compensation
A. Fee Schedule
Portfolio Management Fees
Total Assets Under Management Annual Fees
$0 – 1,000,000 1.00%
$1,000,001 – 5,000,000 0.50%
$5,000,001 – And Up 0.25%
Fees are paid in advance: The advisory fee is calculated using the value of the assets in
the Account on the last business day of the prior billing period. If a client deposits $100k
or more mid-quarter, they will be billed pro-rata on that amount. If a client withdraws
$100k or more mid-quarter, they will be refunded pro-rata.
The final fee schedule is attached as Exhibit I of the Investment Advisory Contract. Clients
may terminate the agreement without penalty for a full refund of CBA's fees within five
business days of signing the Investment Advisory Contract. Thereafter, clients may
terminate the Investment Advisory Contract generally with 3 days' written notice.
Remainder of advanced fees will be pro-rated to the end of the calendar quarter.
CBA may carry other fee schedules with clients who are grandfathered from prior fee
schedules in place when the current fee schedule was implemented. The fee schedule may
also be altered depending upon asset size.
Selection of Other Advisers Fees
CBA will receive its standard fee separate from the fee paid to the third-party adviser.
This relationship will be memorialized in each separate contract between client and each
third-party adviser. The fees will not exceed any limit imposed by any regulatory agency.
Specifically, CBA may direct clients to Dorsey Wright Associates, among others. The CBA
Quantitative Growth strategy charges a separate fee not included in the CBA standard fee
in order to pay the manager of that strategy who is not an employee of CBA.
Financial Planning Fees
Fixed Fees
The negotiated fixed rate for creating client financial plans is between $500 and $10,000.
Hourly Fees
The negotiated hourly fee for these services is $200.
Clients may terminate the agreement without penalty, for full refund of CBA’s fees, within
five business days of signing the Financial Planning Agreement. Thereafter, clients may
terminate the Financial Planning Agreement generally upon written notice.
B. Payment of Fees
Payment of Portfolio Management Fees
Asset-based portfolio management fees are withdrawn directly from the client's accounts
with client's written authorization on a quarterly basis. Fees are paid in advance.
Lincoln Life annuity fees are 0.50% annually, payable 0.125% quarterly in advance.
Payment of Selection of Other Advisers Fees
Fees for selection of Dorsey Wright Associates as third-party adviser may be invoiced and
billed directly to the client. Fees are paid quarterly in advance.
Fees from Lincoln Life or other Fee-Only annuity companies are payable in arrears.
Payment of Financial Planning Fees
Financial planning fees are paid via check.
Fixed financial planning fees are paid 50% in advance, but never more than six months in
advance, with the remainder due upon presentation of the plan.
Hourly financial planning fees are paid 50% in advance, but never more than six months
in advance, with the remainder due upon presentation of the plan.
C. Client Responsibility for Third Party Fees
Clients are responsible for the payment of all third-party fees (i.e. custodian fees,
brokerage fees, mutual fund fees, transaction fees, etc.). Those fees are separate and
distinct from the fees and expenses charged by CBA. Please see Item 12 of this brochure
regarding broker-dealer/custodian.
D. Prepayment of Fees
CBA collects fees in advance, as indicated above. Refunds for fees paid in advance will be
returned within thirty days after the end of the quarter via check or return deposit back
into the client’s account.
For all asset-based fees paid in advance, the fee refunded will be equal to the balance of
the fees collected in advance minus the daily rate* times the number of days elapsed in
the billing period up to and including the day of termination. (*The daily rate is calculated
by dividing the annual asset-based fee rate by 365.)
Fixed fees that are collected in advance will be refunded based on the prorated amount of
work completed at the point of termination.
For hourly fees that are collected in advance, the fee refunded will be the balance of the
fees collected in advance minus the hourly rate times the number of hours of work that
has been completed up to and including the day of termination.
E. Outside Compensation for the Sale of Securities to Clients
Neither CBA nor its supervised persons accept any compensation for the sale of
investment products, including asset-based sales charges or service fees from the sale of
mutual funds.