Item 5 – Fees and Compensation
Portfolio Management Services
The annual fee for portfolio management services is charged in quarterly increments, in arrears,
and is due on the fifteenth day of the calendar quarter. It is based on the account’s asset market
value on the last business day of the prior calendar quarter. Fees are prorated for accounts
opened during the quarter. Fees for portfolio management services are negotiable, and our Asset-
Based Fees range from .5 % to 1.%. If a client chooses to use an additional third-party manager,
the total fee could be a total not to exceed 2.5%. If the account is higher than $5 million AUM the
firm’s fee may be lower than 0.5%. Fees are typically based on the amount of assets under
management and the range of services being provided. The fee amount may also vary depending
on the specific investment adviser representative managing the account, and the fee schedule in
place at the time of initial client engagement.
CRIA will invoice the client directly, or payment will be made by the qualified
custodian holding the client’s funds and securities, provided the client supplies
written authorization permitting the fees to be paid directly from the account. CRIA will not have
access to client funds for payment of fees without written consent by the client.
Further, the qualified custodian agrees to deliver a quarterly account statement directly to the
client, which shows all disbursements from the account. The client is encouraged to review all
account statements for accuracy. CRIA will receive a duplicate copy of the statement
that was delivered to the client. Since fees are payable after services are provided, there are no
unearned fees and the client is not due a refund upon early termination of an investment
advisory contract. However, CRIA’s fees are prorated to the date of termination.
The fee is based on a percentage of assets under management in accordance with the following
tiered schedule:
Asset-Based Fees Schedule for Assets Under Management (AUM): *
1.0% per year (up to $1 million AUM per household)
0.50% per year ($1 million -$5 million AUM per household)
Thereafter, the annual rate is negotiable over $5 million AUM per household
* At CRIAs’ discretion, CRIA may allow accounts of members of the same household
to be aggregated for purposes of determining the advisory fee. CRIA may allow such aggregation,
for example, where CRIA services accounts on behalf of minor children of current clients,
individual and joint accounts for a spouse, and other types of related accounts. This consolidation
practice is designed to allow client(s) the benefit of an increased asset total, which could
potentially cause the account(s) to be assessed a reduced advisory fee based on the breakpoints
available in CRIA’s fee schedule as stated above.
Lower fees for comparable services may be available from other sources.
GENERAL INFORMATION ON ADVISORY SERVICES AND FEES
The fee charged is calculated on a case-by-case basis with each client and is not charged on the basis
of a share of capital gains upon, or capital appreciation of, the funds or any portion of the funds of an
advisory client (SEC Rule 205(a)(1)).
Accounts initiated or terminated during a calendar quarter will be charged on a prorated basis and,
upon termination earned, unpaid fees, if any, will then be due and payable. The client has the right to
terminate an agreement without penalty within five business days after entering into the agreement.
Also, per the CRIA client agreement, CRIA clients may terminate an advisory agreement at any time.
Advice offered by CRIA may involve investment in mutual funds. All fees paid to CRIA for
investment advisory services are separate and distinct from the fees and expenses charged by
mutual funds (described in each fund’s prospectus) to their shareholders. These fees will
generally include a management fee and other fund expenses. Further, brokerage commissions,
transaction charges, and other related costs and expenses are involved with the purchasing or
selling of securities and are incurred by clients.
Clients may incur certain charges imposed by custodians, brokers, third party investment and
other third parties, such as fees charged by managers, custodial fees, deferred sales charges, odd-
lot differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on
brokerage accounts and securities transactions. CRIA does not share in any portion of the
brokerage fees or transaction charges imposed by the custodian holding the client funds or
securities. The client should review all fees charged by mutual funds, CRIA, and others to
understand the total amount of fees to be paid by the client.
There is a small annual account fee of $60, charged quarterly in arrears, for accounts under
$50,000.
SEI is our custodian. SEI offers model portfolios and third-party money managers in addition to
their robust offering of no-load mutual funds and traditional securities. CRIA traditionally
manages portfolios utilizing the full suite of no-load mutual funds, traditional stocks, and bonds.
CRIA would only elect to utilize third party managers for specific investments (For Example:
The client requests a target date retirement fund).
In the event a client directs CRIA to purchase or invest in a third-party manager or model
portfolio through SEI, there will be an additional layer of fees in the form of the SEI portfolio
management fee. CRIA’s standard fee schedule still applies in this case. However, CRIA will
reduce its fees to ensure that the total fees do not exceed 2.5%. Please note that SEI model
portfolio/third party managed accounts charge their fees directly apart from CRIA.
Fees are charged per individual custody account and SEI Private Trust Company (“SPTC”) may,
in its sole discretion, waive one or more of these fees, in whole or part based on SEI’s
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