Item 5 Fees and Compensation
A. The client can determine to engage Duncan Financial to provide discretionary or non-
discretionary investment advisory services on a fee (percentage) basis. Duncan Financial’s
annual investment advisory fee shall be based upon a percentage (%) of the market value
of assets placed under Duncan Financial’s management (between 0.80% and 2.00%) to be
charged quarterly in arrears, as follows:
Market Value of Portfolio Annual Fee %
Initial $500,000 2.00%
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Next $500,001 to $1,000,000 1.00%
Next $1,000,001 and up 0.80%
*Effective 3.12.19: Subject to a minimum annual fee of $2,000. Legacy clients are not charged
this minimum fee until they sign an amendment to their advisory agreement.
Duncan Financial imposes a minimum annual fee of $2,000 per client family, which
generally includes investment advisory services and financial planning services. Such fee
shall be calculated and deducted, as applicable, from client account(s) in the fourth quarter
of each year, unless otherwise noted. This minimum fee may have the effect of making
Duncan Financials’ services impractical for clients with portfolios less than $100,000 under
management, and clients with less than $100,000 under management would effectively pay
more than a 2% annual fee. Duncan Financial, in its sole discretion, may agree to waive or
reduce its minimum annual fee, taking into account client’s complexity of their financial
situation and estimated time involved.
No increase in the advisory fee shall be effective without prior written notification to the
client. The advisory fee shall be paid by client quarterly, in arrears, based upon the current
market value of the assets (including accrued interest and not reduced by any margin loans),
on the last business day of the calendar quarter. The fee is calculated by multiplying the
account value by the annual fee rate and dividing by four. When management services
commence on anything but the first day of the current quarter, the fee shall be prorated by
the number of active days of management. If the client terminates prior to the end of the
quarter, client authorizes Duncan Financial to prorate and deduct the fee due up until the
date of termination. Because fees are charged in arrears, no refund is necessary.
In certain circumstances, rather than following the above fee schedule, clients can negotiate
their investment advisory fee to a flat Fixed-Fee amount that is billed per quarter, in arrears.
This fee is outlined in the clients Exhibit A of their Investment Advisory Agreement. Fixed-
fees are intended to be competitive with what the client might expect to pay under a
“percentage-based” fee schedule. Throughout the relationship, it is anticipated that Duncan
Financial will periodically review the fixed-fee for each client to remain commensurate
with factors such as client’s financial situation, level of investable assets and estimated
time involved.
Fees may be negotiated and vary among clients for similar services. Remittance in the full
amount shall be collected by the Custodian of client’s account by debiting clients’ account
and liquidating securities selected by Duncan Financial, if applicable. If client has more
than one account, fees may be aggregated and deducted from any of client’s accounts.
Unless Duncan Financial has agreed to permit client to remit payment directly, client
authorizes the Custodian of the assets to charge the account for the amount of the advisory
fee and to remit such fee to Duncan Financial in accordance with regulatory procedures.
In the event that the client requires extraordinary planning and/or consultation services (to
be determined in the sole discretion of Duncan Financial), Duncan Financial may
determine to charge for such additional services, the dollar amount of which shall be set
forth in a separate written notice to the client.
FINANCIAL PLANNING AND CONSULTING SERVICES (STAND-ALONE)
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Duncan Financial may also provide stand-alone financial planning services to individuals
who do not have an investment advisory relationship with Duncan Financial.
To the extent specifically requested by a client, Duncan Financial may determine to provide
financial planning, tax planning, and/or consulting services (including investment and non-
investment related matters, including estate planning, insurance planning, etc.) on a stand-
alone fee or retainer basis. Duncan Financial’s planning and consulting fees are negotiable,
but generally range from $1,000 to $10,000, depending upon the level and scope of the
service(s) required and the professional(s) rendering the service(s). Fees charged for tax
return preparation will be based on the complexity of the return. Financial Planning fees
are considered earned upon completion and delivery, or maintenance, of the financial plan.
Each client, without preference or discrimination, has the option to engage Duncan
Financial to provide financial planning and consulting services on a fixed fee basis. The
items addressed in a modular plan or general consulting services may include any one or
more of the services listed above. The basic terms and costs are outlined in the Financial
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