Item 5 Fees and Compensation
Portfolio Management Services
Our advisor fee for portfolio management services is based on a percentage of the average daily
balance in your account. Advisory fees vary based on various factors and is set forth in the client's
Investment Management Agreement (IMA), never to exceed 2%.
Our annual Advisor Fee is billed and payable, monthly in arrears, based on the average daily balance
of the previous month. These fees are paid to your investment adviser representative based on the
payout percentage with Encompass More AM. Encompass More AM may also receive a portion of
these fees.
In addition, the selected model(s) will typically have management fees that range from 0.25% to 1.00%
which you will pay in addition to the Advisor Fee. These fees are not shared with your IAR but instead
are paid to the sub-adviser of the model. In the case of our proprietary models, Encompass More AM
will charge you no more than 0.70% which is not shared with the IAR. Encompass More AM will also
receive a portion of the fees charged to you by the sub-advisers for their models.
If the IMA is executed at any time other than the first day of a calendar quarter, our fees will apply on a
pro rata basis, which means that the advisory fee is payable in proportion to the number of days in the
quarter for which you are a client. The annual Advisor Fee is negotiable at our discretion, depending
on individual client circumstances.
At our discretion, we may combine the account values of family members living in the same household
to determine the applicable advisory fee. For example, we may combine account values for you and
your minor children, joint accounts with your spouse, and other types of related accounts. Combining
account values may increase the asset total, which may result in your paying a reduced advisory fee
based on the available breakpoints in our fee schedule stated above.
We will deduct our fee directly from your account through the qualified custodian holding your funds
and securities. We will deduct our advisory fee only when you have given our firm written authorization
permitting the fees to be paid directly from your account. Further, the qualified custodian will deliver an
account statement to you at least quarterly. These account statements will show all disbursements
from your account. You should review all statements for accuracy.
You may terminate the IMA upon written notice. You will incur a pro rata charge for services rendered
prior to the termination of the IMA, which means you will incur advisory fees only in proportion to the
number of days in the quarter for which you are a client.
Private Placements or Private Equity
The firm offering the Fund will typically receive a placement fee, along with marketing and due
diligence fees, and the Adviser will charge an advisory fee in lieu of the selling
commission. Management fees are based on each investor's capital commitment to the Fund at
closing date and are sometimes charged up front for the full term of the Fund. Each Fund that
Encompass More AM recommends to you may have different fees, expenses and holding periods. You
should review these with your financial professional and carefully read the disclosure documents they
provide. Your Encompass More AM fee will include the assets invested in a private fund in the asset
fee schedule listed above unless different arrangements are agreed upon between you and
Encompass More AM.
Management Services to Pooled Investment Vehicles
Encompass More AM serves as the Investment Manager or Investment Adviser to the Fund. Typically,
the Investment Manager or Investment Adviser is responsible for the management, operation and
control of the investment activities of the Funds, to the extent provided in the Partnership Agreement
and Management Agreement. The Investment Manager's primary functions will be to identify, analyze
and select potential Portfolio Investments.
Encompass More AM charges a management fee or administration fee in accordance with the terms of
the Fund. You should refer to the offering documents for a complete description of the fees and other
relevant information associated with investing in the Fund. Investors in the Partnership will generally be
subject to (i) a monthly management fee, payable in arrears, equal to 1/12 of 2.0% (2.0% per annum)
of each investor's capital account balance as of the end of each month; and (ii) a quarterly
performance allocation equal to 20% of each investor's ratable share of the Partnership's profits for
such quarter, but only to the extent that such profits exceed such investor's "high water mark," and
provided such profits exceed an annualized rate of return equal to 8%.
Financial Planning and Consulting Fees
All fees and services are negotiable and specified under the terms of the financial planning/consulting
agreement.
Hourly Financial Consulting: Fees for hourly financial consulting generally range from $100 to $300 per
hour. In certain circumstances, the fee, or a portion of it, may be collected in advance.
Fixed Fee Services: A fixed fee can be charged as documented in the financial planning/consulting
agreement. The agreed upon fee can vary by client or arrangement depending upon the services
provided or complexity of the client situation. Clients may pay a portion of the fee in advance and the
balance upon completion of services.
Subscription Based: The subscription based fee for the financial planning program will be stated in the
financial planning/consulting agreement. Clients may pay a portion of the fee in advance and then on a
systematic basis, generally monthly or quarterly. In cases where the client has paid their fee or a
portion of their fee in advance, the client will have five (5) days after signing the agreement to
terminate without penalty. If the client terminates the agreement after the first five days, the client will
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