Item 5 - Fees and Compensation
Description
Fees for investment advisory management services (non-SMA) are negotiated in advance, and the fees are stated
in the contract as the sum of a percentage of assets under management and a flat fee. The flat fee amount ranges
from $0 to $2,500.00 and is based on various factors, including but not necessarily limited to the frequency of
meetings and the level of the adviser's review responsibilities. The percentage of asset range is between 1.0% to
0.15%. The percentage fee is based on various factors, including but not necessarily limited to the level of the
adviser's review responsibilities, the amount of assets managed, type of account (pooled, daily valued, 403-b,
etc.), and the asset mix desired. In our opinion, the total fee resulting from the combination of our fixed fee and
our percentage fee is appropriate and competitive for most potential clients. However, at smaller asset bases (for
example less than $100,000) the total fee could be higher than that charged by other advisers who provide the
same or similar services.
At times, group or family fee schedules providing reduced fees can be used for clients. FMP Wealth Advisers, in its
sole discretion, will determine when a group or family fee schedule should be applied based upon certain criteria (e.g.,
historical relationship, type of assets, anticipated future earning capacity, anticipated future additional assets, dollar
amounts of assets to be managed, related accounts, account composition, negotiations with clients, etc.). Fees are
usually paid quarterly in advance. The client or the adviser may terminate at any time and a refund will be made
for the value of services paid but not yet rendered.
Fees for the SMA investment advisory management services will generally be charged as a percentage of assets
under management. Annual fees for the fixed income strategies will range from 1.30% to 0.60%. Annual fees for our
equity strategies range from 1.50% to 0.60%. The fees stated here are the sum of FMP Wealth Advisers’ fee and the
sub-adviser’s management fee. The sub-adviser’s management fee may be bundled with FMP Wealth Advisers’ fee
or it may be charged separately. Which way the sub-adviser’s fee is handled depends on the agreement FMP Wealth
Advisers has with the sub-adviser.
All fees referenced above reflect our standard ranges. Some accounts may exist with fees that fall outside our
standard range. FMP Wealth Advisers, in its sole discretion, may charge a lesser investment advisory
management fee based upon certain criteria (e.g., historical relationship, type of assets, anticipated future
earning capacity, anticipated future additional assets, dollar amounts of assets to be managed, related accounts,
account composition, negotiations with clients, etc.).
Financial plans are priced according to the degree of complexity associated with the client’s situation.
Management fees for the Private Funds are disclosed in the private placement memorandum for each fund.
Fee Billing
Investment management fees are billed quarterly, in advance, meaning that we invoice you or charge your fees on
or before the beginning of the three-month billing period. Payment in full is expected upon invoice presentation.
The annual flat fee or percentage fee is prorated each quarterly billing period. For example, the annual percentage
fee for a full quarter is divided by four. When a fee is billed for a portion of a quarter, the actual number of days
will be used to determine the portion of the quarter’s fee due.
All accounts, depending on the particular arrangement with each client, will be charged either by invoicing
clients or directly debiting their custodial accounts. Clients should contact their custodian for more information
related to the deduction of fees from client accounts. The client must consent in advance to direct debiting of
their investment account.
In valuing a client’s assets for an initial billing period, we reference the later date of the client’s agreement or the
date assets are available for management. After the initial billing period, we value a client’s assets on or before
the beginning of the billing period. At times, asset values billed may be different than a client’s custodial account
statements. Some of the reasons this can occur is if a client has non-managed securities that are not billed or if the
custodian records a dividend or price correction as of the end of the quarter, but these are shown by the custodian
on the next statement.
For qualified plan clients, the adviser has no responsibility to provide any services related to the following types
of assets: employer securities; real estate (except for real estate funds and publicly traded REITs); life insurance;
stock brokerage accounts; participant loans; non-publicly traded partnership interests; other non-publicly traded
securities or property (other than collective trusts and similar vehicles); or other hard-to-value or illiquid
securities or property (collectively, “Excluded Assets”). The Excluded Assets (other than participant loans) shall
be disregarded in determining the fees payable to the adviser, and the Fees shall be calculated only on the
remaining assets (the “Included Assets).
For brokerage accounts with a margin balance or negative cash arising from over drafting, the value billed nets
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