ITEM5–FEES AND COMPENSATION
5a, b, c, d & e: Fee Schedules, Payments & Options
Investment Management
EQ Wealth Management charges a fixed percentage of assets under management. EQ Wealth Management’s
advisory fee schedule is as follows:
Assets Under Management EQ Advisory Fee
$0 to $999,999 1.00%
$1 million to $4,999,999 0.85%
Over $5 million 0.50%
Fees on Held-Away Assets: Fees for held-away assets are 0.50% annually, billed quarterly in advance and are based
on the value provided by the custodian holding the asset. If no custodial statement is available, the client will
provide their cost basis as the value on which our fee is based.
Additional Fee: EQ Wealth Management has arranged for a back office service provider to perform administrative,
billing, reporting, and trading services to clients regarding their account. Not all account types are charged a
back office fee and therefore not all clients will see a back office fee. If applicable, the annual fee for these
services (up to 0.03% of the value of the account) will be deducted directly from the account on a quarterly basis in
advance of the services being performed. In situations where the billing period for these services does not span an
entire calendar quarter, the fee will be pro-rated based upon the number of days services were provided
during the calendar quarter. Clients will see the fee as a separate deduction on the custodian’s periodic
statements.
ADV PART 2 A & B BROCHURE PAGE 7 OF 41
EQ Wealth Management fees are generally not negotiable. Fees may differ based on a number of factors:
• Size of the relationship – larger accounts may receive more favorable pricing.
• Level of services needed – certain accounts requiring less complexity or fewer services, such as a
charitable fund and/or foundation may receive more favorable pricing.
• Family or related accounts - certain family and/or related accounts may receive more favorable pricing.
Our fee includes the time and activities necessary to work with your attorney, accountant, and/or other outside
professionals in reaching agreement on solutions, as well as assisting them in implementation of all appropriate
documents. We are not responsible for attorney, accountant, or other outside professional fees charged to you as a
result of the above activities.
Compensation for our services will be calculated in accordance with what is set in the Client agreement. We
may modify the terms of any agreement by written changes submitted to the Client for signature. While we strive
to maintain competitive fees, the same or similar services may be available from other firms at higher or lower fees.
Unless otherwise authorized, EQ Wealth Management possesses written authorization from the Client to deduct
advisory fees from an account held by a qualified custodian. EQ Wealth Management sends the qualified custodian
written notice of the amount of the fee to be deducted from the Client’s account. EQ Wealth Management fees
are paid from your account by the custodian when we submit an invoice to them. If there is insufficient cash in your
account to pay your fees, an equal balance of securities in your portfolio may be sold to pay our fee. In addition to
our fees, there may be custodial, mutual fund, 12b-1 fees or similar third-party management fees and charges (see
5c below).
Clients will execute a separate agreement for held-away assets which reflect the services and fees provided.
EQ Wealth Management fees are paid quarterly in advance, with payment due within 10 days from the date of the
invoice. Our fee is determined by taking the percentage rate we charge, divided by four, times the market
value of the account. The market value is the sum of the values of all assets in the account, not adjusted by any
margin debit. In cases where there are partial fees at the commencement or termination of our agreement, they
will be billed or refunded on a pro-rated basis contingent on the number of remaining days. Quarterly fee
adjustments for additional assets received into the account during a quarter or for partial withdrawals will also be
provided on the above pro rata basis. Because the custodian does not calculate the amount of fee to be deducted,
it is important for Clients to carefully review their custodial statements to verify the accuracy of this calculation.
Clients should contact us directly if they believe there may have been an error in the calculation of their fee, or any
other information provided in the custodian statement.
Clients may cancel our Investment Advisory Agreement within 5 business days of entering into the contract and
receive a full refund of all fees paid to EQ Wealth Management related to the cancelled Investment Advisory
Agreement.
Private Fund. EQ Wealth Management receives compensation from the EQ Income Fund I (the "Fund") in the form
of a 1.00% annual asset-based management fee. Since this compensation is a flat fee and not subject to the
decreasing breakpoints in our standard advisory fee, a potential conflict of interest exists. For example, a reasonable
investor would assume that we may be incentivized to recommend a Client to move assets away from investment
strategies that provide EQ Wealth Management lower annual fees, to the Fund that provides us a 1.00% annual fee.
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