Item 5 – Fees and Compensation
All fees are negotiable.
Fees are computed and payable quarterly, in advance, and are calculated based on the closing market value of
the assets in your managed account held on the last day of the previous quarter.
If your account is terminated prior to the end of the quarter, the fee for that quarter will be prorated for the
number of days the account was open during the quarter and any overpayment for the quarter, will be returned
to you following the closing of the account. Conversely, if an account is opened after the beginning of a
quarter, the account will be only be charged for the number of days remaining in the quarter.
If there is not enough cash or funds in your managed account to pay the management fee, the account will be
rebalanced to generate sufficient funds to meet the expense charged. You may be billed for any unpaid
balances due after your account is closed.
CWCO-IA’s annual management fee ranges from 0.25% to 3.00% of the account’s value. The fee charged to
you will depend on the program selected and the assets under management in accordance with CWCO-IA fee
schedule. Initial investment amounts will vary depending upon the program you select. Account Fees are
negotiable and subject to discounts on an Advisor-by-Advisor or account-by-account basis. Fees are designed
to cover all client costs except costs incurred because of special requests for services not provided by your
Advisor account.
No portion of the Management Fee is based on a sharing of capital gains or capital appreciation of the Assets
and no increase in the Quarterly Management Fee will be initiated without prior written notification to you.
CWCO-IA may charge you a fee based on (i) a percentage of the Account value, or (ii) on a commission basis.
You will pay either a commission or a fee, but not both. CWCO-IA will not charge both commissions and fees to
an account under management. CWCO-IA may also allow its IARs, if agreed to by you, to offer investment
management services based on an hourly rate. AdvisorPlus account will incur a per transaction fee in addition
to the Quarterly Account management fee. Advisor Plus charges a $15 transaction fee and a reduced asset
fee.
Your Independent Investment Team since 1932
CW Portfolio Advisor - Equity & Balanced Accounts
Portfolio Value Annual Maximum Fee
First - $250,000 2.50%
Next - $250,000 2.25%
Next - $500,000 2.00%
Next - $1,000,000 1.75%
Next - $3,000,000 1.50%
Over - $5,000,000 Negotiable
CW Portfolio Advisor Plus - Equity & Balanced Accounts
Portfolio Value Annual Maximum Fee
First - $250,000 2.25% +$15/trade
Next - $250,000 2.00% +$15/trade
Next - $500,000 1.75% +$15/trade
Next - $1,000,000 1.50% +$15/trade
Next - $3,000,000 1.50% +$15/trade
Over - $5,000,000 Negotiable +$15/trade
CW Fixed Income Advisor – Fixed Income Accounts
Portfolio Value Annual Maximum Fee
First - $500,000 1.00%
Next - $500,000 0.90%
Next - $1,000,000 0.85%
Next - $3,000,000 0.80%
Over - $5,000,000 Negotiable
CW FundPort Advisor – Mutual Fund Accounts
Portfolio Value Annual Maximum Fee
First - $50,000 2.00%
Next - $50,000 1.75%
Next - $150,000 1.50%
Next - $250,000 1.25%
Over - $500,000 1%
Minimum Fee Requirement: CW Portfolio Advisor for Equity & Balanced accounts, CW Portfolio AdvisorPlus and
CW Asset Manager accounts are subject to a minimum annual Management Fee of $1,500.00, billed quarterly
in advance. CW Fixed Income Advisor accounts are subject to a minimum annual Management Fee of
$2,500.00, and CW FundPort Advisor accounts are subject to a $500.00 minimum annual fee, also billed
quarterly in advance.
Your Independent Investment Team since 1932
At the time of establishing a managed account, you will select the options for paying the management fee to
CWCO-IA or to an approved outside third party manager. Under the options, clients will pay this fee as part of
their total management fee, which is defined in the Investment Management agreement.
Generally, when you execute CWCO’s Management Agreement, you are authorizing CWCO-IA to invoice the
Custodian for the Management Fee and direct and authorize the Custodian to deduct the amount stated in the
Management Agreement directly from your Account. You also direct and authorize CWCO-IA to instruct the
Custodian to send you a statement, at least quarterly, indicating all activity in your account including the
Management Fee paid from the account. It is your responsibility to verify that the management fee and the
calculation of the fee is accurate. Neither CWCO-IA nor the Custodian will determine whether the management
fee is accurate or was properly calculated.
Unless you provide otherwise in your advisory agreement, all fees owed to CWCO-IA in connection with a
managed account are automatically debited from your managed account or, at your direction, from another
one of your accounts held by CWCO-IA. You may also authorize fee payment from your brokerage account to
pay for financial planning services. If you participate in outside third party managed programs where CWCO-BD
is not the custodian, you may be billed quarterly, in advance by another Custodian for management services.
Other fees that you may be charged may consist of custody and clearing fees, reporting fees, outside money
manager fees, on-going mutual fund fees and expenses imposed by the mutual fund company. Additional fees
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