Item 5. Fees and Compensation
enTrust Wealth offers services on a fee basis, which includes fixed fees, as well as fees based upon
assets under management. Additionally, certain of the Firm’s Supervised Persons, in their individual
capacities, offer insurance products under a separate commission-based arrangement. Clients are
under no obligation to purchase insurance products through enTrust’s Supervised Persons.
Investment Management Fees
enTrust Wealth offers investment management services for an annual fee based on the amount of
assets under the Firm’s management. This management fee varies between 50 and 125 basis points
(0. 50% – 1.25%), depending upon the size and composition of a client’s portfolio, the type and
complexity of services rendered and whether services are provided through the Wrap Program.
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The annual fee is prorated and charged quarterly, in advance, based upon the market value of the
assets being managed by enTrust Wealth on the last day of the previous quarter. If 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deposited into or withdrawn from an account after the inception of a billing period, the fee payable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. 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.
Additionally, for asset management services the Firm provides with respect to certain client
holdings (e.g., held-away assets, accommodation accounts, alternative investments, etc.), enTrust
Wealth may negotiate a fee rate that differs from the range set forth above.
The fees charged by enTrust Wealth are negotiable. enTrust may charge a lower fee or higher 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/legacy client relationship and account retention. The actual fee charged by enTrust
Wealth will be disclosed in the client Investment Advisory Agreement or an amendment thereto.
Financial Planning and Consulting Fees
enTrust Wealth charges a fixed fee for providing certain financial planning and consulting services.
The Firm charges a separate fee outside of the Firm’s wealth management fees described above
where the Firm determines it is not managing enough of a client’s assets to justify the amount of
work anticipated in the financial planning and/or consulting project. These fees are negotiable
depending upon the scope and complexity of the services and the professional rendering the
financial planning and/or the consulting services. If the client engages the Firm for additional
investment advisory services, enTrust Wealth may offset all or a portion of its fees for those services
based upon the amount paid for the financial planning and/or consulting services.The terms and
conditions of the financial planning and/or consulting engagement are set forth in the Advisory
Agreement and enTrust Wealth requires one-half of the fee payable upon execution of the Advisory
Agreement. The outstanding balance is due upon delivery of the financial plan or completion of the
agreed upon services. The Firm does not, however, take receipt of $1,200 or more in prepaid fees in
excess of six months in advance of services rendered.
Additional Fees and Expenses
In addition to the advisory fees paid to enTrust Wealth, clients also incur certain charges imposed
by other third parties, such as independent managers, broker-dealers, custodians, trust companies,
banks and other financial institutions (collectively “Financial Institutions”). These additional
charges include securities brokerage commissions, transaction fees, custodial fees, fees attributable
to alternative assets, margin costs, charges imposed directly by a mutual fund or ETF in a client’s
account, as disclosed in the fund’s prospectus (e.g., fund management fees and other fund
expenses), deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic
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fund fees, and other fees and taxes on brokerage accounts and securities transactions. Independent
Managers may be hired under separate written agreements and will charge fees in addition to
enTrust Wealth’s fee. Mutual funds and exchange traded funds charge internal management fees,
which are disclosed in a fund’s prospectus. Such charges, fees and commissions are exclusive of and
in addition to enTrust Wealth’s fee. enTrust Wealth buys, sells and holds in mutual funds that are
no-load or load-waived. In the event a client transfers a mutual fund to the Firm that charges a
deferred sales charge (12b.1 fee) the Firm will convert the holding to a lower cost option if
available. enTrust Wealth and its associated persons do not earn any portion of these additional
fees and expenses, however the costs incurred through the additional fees and expenses reduce the
overall potential earnings experienced by the Client.
Fees paid for the Firm’s services may be higher or lower than fees charged by advisers of comparable
investment advisory programs. The Firm’s brokerage practices are described at length in Item 12,
below.
Direct Fee Debit
Clients provide enTrust Wealth and/or certain Independent Managers with the authority to directly
debit their accounts for payment of the investment advisory fees. The Financial Institutions that act
as the qualified custodian for client accounts, from which the Firm retains the authority to directly
deduct fees, have agreed to send statements to clients not less than quarterly detailing all account
transactions, including any amounts paid to enTrust Wealth. Alternatively, clients may elect to have
enTrust Wealth send a separate invoice for direct payment.
Use of Margin
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