Item 5 – Fees and Compensation
FCA Investment Management Services:
FCA will require each Investment Management client to make a selection of services in writing as part of the
Investment Advisory Agreement (“IAA”), which sets forth the rights and obligation of FCA and the Client.
Fees for Investment Management Services are negotiated prior to the signing of the IAA. The IAA is then
customized to state the negotiated fee, which, in general is expressed as a percentage of the Client’s assets
under advisement. FCA accounts are designed to provide discretionary management of the Client’s portfolio
by FCA’s investment team or the client’s investment advisory representative.
FCA does not normally consider fees to be negotiable, however, FCA reserves the right in its discretion, to
agree to a management fee for any particular client that varies from the fee set forth in the table below and
which may be lower or higher than fees charged to another client with a similar sized account. Relevant
factors that lead to a variation in fees include the size and scope of the client’s overall relationship with FCA
and its affiliates.
For ongoing investment management and advisory services, FCA is paid a fee based on a percentage of assets,
in accordance with the following table though most clients pay a fixed percentage fee while other clients pay a
fee based on a tiered schedule:
Asset Level Maximum Fee
Rate
$0-500,000 1.50%
$500,001 - $1,000,000 1.25%
$1,000,001 - $3,000,000 1.05%
$3,000,001 - $5,000,000 0.65%
$5,000,001 - $10,000,000 0.50%
$10,000,001 - $25,000,00 0.40%
Over $25,000,000 0.30%
Fees are charged quarterly in advance, or as otherwise stated in the IAA. Quarterly fees are calculated by
multiplying the fair market value of the assets in the Account for the billing period by the annual rate and
divided by four. The fee may be either rounded down or up to the nearest dollar. Fees will be adjusted for
deposits or withdrawals on a prorated basis. Cash is included in the calculation of the Fee and in a low interest
rate environment, our advisory fees charged could exceed the money market yield. Fair market value of
assets for this purpose is normally equivalent to the amount reflected on the custodial account statement,
although on occasion adjustments will be necessary to reflect such items as interest accrued but not yet paid.
Generally, fees are paid to FCA directly from the client’s Account, but if requested in writing they can be direct
billed to the Client. Fees are reflected on the client’s Account statement in the month charged. In addition, the
client’s custodian sends to the client, at least quarterly, an account statement which reflects the activity in the
account, including fee payments.
Securities for which fair market values are not readily available are valued in good faith by FCA. Valuations
used for billing will be based on the most recent valuations available, unless the investment committee
evaluation deems otherwise. Some valuations for non-traded assets, including Limited Partnerships, are only
provided annually or are provided on a delayed basis. FCA will use the most recent valuation available at the
time of billing.
Investment Advisory Agreement for Accounts may be terminated by either party upon written notice without
penalty. Fees will be prorated based on the number of days the Account is under FCA’s management for an
Account that is terminated during the billing period and the fee may be either rounded down or up to the
nearest dollar. If a client transfers their account without providing written notice, the date of the account
transfer will be used as the date of termination.
FCA Corporate & Institutional Services Fees:
I. Fiduciary & Institutional Consulting (FCA-FIC)
FCA will require each Fiduciary & Institutional Consulting client to make a selection of services in writing as
part of the Investment Advisory Agreement (“IAA”), which sets forth the rights and obligation of FCA and the
Client.
Fees for Fiduciary & Institutional Consulting services are negotiated prior to the signing of the IAA. The IAA is
then customized to state the negotiated fee, which, in general is expressed as a percentage of the Client’s
assets under advisement. As summarized above, a client may engage FCA on a discretionary or non-
discretionary basis.
FCA does not normally consider fees to be negotiable, however, FCA reserves the right in its discretion, based
on factors FCA deems relevant, to agree to a management fee for any particular client that varies from the fee
set forth in the table below and which may be lower or higher than fees charged to another client with a
similar sized account. In certain situations, minimum account fees may apply that may exceed the fees in the
schedule below.
For ongoing consulting services, FCA is paid a fee based on a percentage of assets, in accordance with the
following table though most clients pay a fixed percentage fee while other clients pay a fee based on a tiered
schedule:
Asset Level Maximum Fee Rate
$0-1,000,000 1.00%
$1,000,001-3,000,000 0.75%
$3,000,001-5,000,000 0.60%
$5,000,001-10,000,000 0.50%
$10,000,001-25,000,000 0.40%
Over $25,000,000 0.25%
Fees are charged quarterly in advance, or as otherwise stated in the IAA. Quarterly fees are calculated by
multiplying the fair market value of the assets in the Account for the billing period by the annual rate and
divided by four. The fee may be either rounded down or up to the nearest dollar. Fees will be adjusted for
deposits or withdrawals on a prorated basis. Cash is included in the calculation of the Fee and in a low interest
rate environment, our advisory fees charged could exceed the money market yield. Fees may be direct billed
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