ITEM 5 – FEES AND COMPENSATION
ASSET MANAGEMENT FEES
CWC Advisors, LLC
CWC offers asset management services for an annual fee based on the amount of assets
under the Firm’s management or advisement. This management fee generally varies
between 50 and 150 basis points (0.50 % – 1.50%), depending upon the size and
composition of a client’s portfolio and the type of investment strategies and services
rendered. The annual fee is prorated and charged quarterly, in advance, based upon the
market value of the assets being managed by CWC on the last day of the previous billing
period.
If material assets are deposited into or withdrawn from an account after the inception of a
billing period, the fee payable with respect to such assets is adjusted to reflect the interim
change in portfolio value. For the initial period of an engagement, the fee is calculated on a
pro rata basis.
Certain legacy clients may be subject to a different fee schedule or billing arrangement. In
addition, CWC may, in its sole discretion, negotiate to charge a lesser fee based upon
certain criteria, such as anticipated future earning capacity, anticipated future additional
assets, dollar amount of assets to be managed, related accounts, account composition, pre-
existing client relationship, account retention and pro bono activities. In addition, for
management services the Firm provides with respect to certain client holdings (e.g., held
away assets, accommodation accounts, alternative investments, etc.), CWC may negotiate a
fee rate that differs from the range set forth above.
Cascade Wealth Group
Cascade Wealth Group offers asset management services for an annual fee based on the
amount of assets under the Firm’s management or advisement as follows:
Annual
Assets Under Management Management Fee
$0-$500,000 1.30%
$500,001 - $1,000,000 1.10%
$1,000,001 and up 0.90%
The annual fee is prorated and charged quarterly, in advance, based upon the market value
of the assets being managed by Cascade Wealth Group on the last day of the previous
billing period.
If material assets are deposited into or withdrawn from an account after the inception of a
billing period, the fee payable with respect to such assets is adjusted to reflect the interim
change in portfolio value. For the initial period of an engagement, the fee is calculated on a
pro rata basis.
Cascade Wealth Group (“Cascade”) will recommend CWC’s investment strategy for all or a
portion of the client’s assets that are contracted under Cascade. In this case, clients will pay
CWC a fixed annual management fee of 0.35%, which will also be billed out quarterly in
advance.
This fee is in addition to the management fee being paid to Cascade. The details of the fee
arrangement are disclosed to clients in their advisory agreement, Schedule A.
Equity Enhancement Partners (“E2P”)
CWC has retained E2P as a marketing/sales consultant and pays a fixed monthly fee. In
addition, CWC acts as a sub-adviser for E2P’s underlying clients. CWC receives a shared
management fee with E2P for consulting services. CWC charges 40-60 basis points and E2P
will receive 20-30 of those basis points.
TERMINATION OF SERVICES
CWC Advisors, LLC
In the event the advisory agreement is terminated, the fee for the final billing period is
prorated through the effective date of the termination, and the outstanding or unearned
portion of the fee is refunded to the client, as appropriate. CWC reserves the right to levy
an additional 1.00% on funds which are withdrawn by the client prior to the expiration of
one year after the funds are placed with CWC Advisors.
Cascade Wealth Group
In the event the advisory agreement is terminated, the final invoice will be prorated based
on the number of months remaining in the quarter in which they terminated. For example,
if the agreement is terminated during the first month of the quarter, the client will receive
2/3 of the fee that was prepaid for the quarter.
FEE PAYMENT
CWC requests management fees to be direct debited from the client’s account(s). At the
inception of the relationship and each quarter thereafter, CWC will notify the custodian of
the amount of the fee due and payable to the Firm. The custodian does not validate or
confirm the calculation on the assets on which the fee is based. They will “deduct” the fee
from the Account(s).
Each month, the client will receive a statement directly from the custodian showing all
transactions, positions and credits / debits into or from the account; the statements after
the quarter end will reflect these transactions, including the advisory fee paid by the client
to CWC.
ADDITIONAL FEES AND EXPENSES
Advisory fees payable to CWC do not include all the fees you will pay when we purchase or
sell securities for your Account(s). The following list of fees or expenses are what you pay
directly to third parties, whether a security is being purchased, sold or held in your
Account(s) under our management. Fees charged are by the broker dealer / custodian. We
do not receive, directly or indirectly any of these fees charged to you. They are paid to your
broker, custodian or the mutual fund or other investment you hold. The fees may include:
• Brokerage commissions;
• Transaction fees;
• Exchange fees;
• SEC fees;
• Advisory fees and administrative fees charged by Mutual Funds (MF), Exchange
Traded Funds (ETFs)
• Advisory fees charged by sub-advisers (if any are used for your account);
• Custodial Fees;
• Deferred sales charges (on MF or annuities);
• Odd-Lot differentials;
• Deferred sales charges (charged by MFs);
• Transfer taxes;
• Wire transfer and electronic fund processing fees; and
• Commissions or mark-ups / mark-downs on security transactions,
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