ITEM 5. FEES AND COMPENSATION
The following describes our fees so you will know how much you are charged and by whom for the advisory services we
provide to you. Our fees are negotiable. Factors that may impact what we charge clients include, but may not be limited to:
Scope of services rendered
Complexity
Amount of assets managed or advised
Number of plans / relationships with the client
Number of participants or accounts
Location of participants or accounts
Number of meetings required
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FAWM will not charge any fee that is not disclosed in this section of our Brochure. Fees are exclusive of brokerage
commissions, transactions fees and other related cost and expenses (unless participating in a Wrap Fee program; see Item
4 Wrap Fees). Such expenses will be assessed to the client. Clients may incur certain charges imposed by custodians, brokers,
and third-party managers or other third parties that FAWM does not control. These charges can include such things as
deferred sales charges, transfer taxes, wire transfer and electronic fund fees, brokerage account fees, and other fees,
charges or taxes. For further information related to our brokerage practices, please see Item 12.
We charge on-going fees based on a percentage of assets under management, on an hourly basis, or on a flat-fee basis.
Depending on the wishes and needs of the client, we may provide different investment advisory services and charge the
client in multiple ways; our fees will always be detailed in the signed written agreement between the client and FAWM. The
circumstances and details of each of these options are described in this section of our Brochure.
We charge asset-based fees quarterly, in advance. In the event that you wish to terminate our services in the future, we will
refund the unearned portion of our fee to you. You need to contact us in writing and state that you wish to terminate our
services. Upon receipt of your notice of termination, we will proceed to close out your engagement and process a pro-rata
refund of unearned fees.
We base our fees on values provided by the account custodian; we do not independently value client assets for billing or
any other purpose.
In some cases, we may hold illiquid securities, such as private placements) that are assessed an asset-based fee. These
securities are often valued infrequently or not at all. If the asset is held by the qualified custodian, we will use the value the
custodian provides. If the asset is held directly with the issuer, we will use one of the following valuation methods: (1) most
recent issuer-provide valuation (generally updated annually, but may be more frequent); (2) original purchase amount; or
(3) original purchase amount less amount reported by the issuer as return of capital. The proceeds obtained by the investor
upon liquidating the investment may be greater or less than the value we use for billing purposes and may differ
substantially.
Where we charge hourly or flat rates, the total estimated fee, as well as the ultimate fee that we charge you, is based on
the scope and complexity of our engagement with you.
In some cases, we select third-party advisers to manage all or a portion of client assets. We have discretionary authority to
hire and terminate the manager, and we negotiate the compensation to be paid to these third parties for management
services rendered to our clients and our firm. This compensation is typically equal to a percentage of the overall investment
advisory fee charged by our firm or an agreed upon fixed fee. The advisory fee paid to third party money managers is
negotiable in certain circumstances, but, when combined with FAWM’s fees, will never exceed the overall amount in our
published fee schedule. We usually pay 25% to 50% of the overall advisory fee to third party money managers for their
services. The fact that the fees vary creates a conflict of interest in our selecting third-party managers. We describe that
conflict in more detail in Item 10, below.
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Fees for Asset Management
For Asset Management services, our fees are generally billed quarterly in advance based on a stated annual rate divided by
four, and based on the value of your account on the last day of the previous quarter. Fees will generally be automatically
deducted from your managed account, although we may agree to bill a client directly on an exceptional basis for Asset
Management services.
The following schedule is a guideline only, subject to a maximum annual percentage fee of 2%; all fees and account value
levels are subject to negotiation at the sole discretion of the IAR.
Level of Assets Under Management (AUM) Annual Fee Charged On All AUM
Over Up To Percentage (%)
$0 $500,000 2.00%
$500,000 $1,000,000 1.75%
$1,000,000 $3,000,000 1.50%
$3,000,000 $10,000,000 1.00%
$10,000,000 0.50%
Fees for Investment Fiduciary Services and Retirement Plan Consulting
Investment Fiduciary Services (Plan Level) and
...