Item 5 – Fees and Compensation
The specific manner in which fees are charged by Forefront is established in a client’s written agreement
with Forefront. Forefront will generally bill its fees on a monthly basis in arrears based on the average daily
balance. Clients may also elect to be billed directly for fees or to authorize Forefront to directly debit fees
from client accounts. Accounts initiated or terminated during a calendar month will be charged a prorated
fee. Upon termination of any account, any unpaid fees will be due and payable. The client has the right to
terminate an agreement without penalty within five business days after entering into the agreement.
All fees are subject to negotiation. Clients should note that similar advisory services may be available from
other registered investment advisers for similar or lower fees. Additionally, Forefront may have varied
legacy fee schedules and arrangements that it honors for relationships that pre-date this disclosure brochure.
Forefront’s fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses which shall be incurred by the client. Clients may incur certain charges imposed by custodians,
brokers, third party investment and other third parties such as fees charged by independent managers,
custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund
fees, and other fees and taxes on brokerage accounts and securities transactions. Mutual funds and exchange
traded funds also charge internal management fees, which are disclosed in a fund’s prospectus. Such
charges, fees and commissions are exclusive of and in addition to Forefront’s fee, and Forefront shall not
receive any portion of these commissions, fees, and costs.
Item 12 further describes the factors that Forefront considers in selecting or recommending broker-dealers
for client transactions and determining the reasonableness of their compensation (e.g., commissions).
The fee schedule applicable as of this Brochure is as follows:
Client Assets Annual Fee (%) for all assets
On the first $500,000 1.50 %
Amounts of $500,001 to $1,000,000 1.35 %
Amounts of $1,000,001 to $2,500,000 1.20 %
Amounts of $2,500,001 to $5,000,000 1.00 %
On all amounts in excess of $5,000,000 0.75 %
This tiered fee schedule may be based on cumulative household assets under management.
For client accounts held at a custodian that is not directly accessible by Forefront, such as held-away assets,
Forefront can manage those assets via a third-party platform which allows Forefront to view and manage
these assets in a discretionary manner. Held-away assets will be included to the total client’s total assets
subject to the fee schedule above. However, as it might not be possible to directly debit the fees from these
accounts, those fees will be assigned to the client’s taxable accounts, or the client will be billed directly to
the client.
Financial Planning and Consulting Services
Fees for financial planning and/or consulting services can be billed on a project, fixed rate, or an hourly
rate. Our hourly rate ranges from $300-$500 and Forefront requires a retainer for the services which is
payable upon entering the agreement. The balance of the fee is due and payable upon receipt of the final
consulting or planning services. Forefront may agree with clients to charge fixed fees for consulting. Based
on the task(s) to be performed, Forefront and the client may agree on a fixed fee based on an estimate of
the number of hours necessary for completion. Forefront offers fixed fees based on the following tiers:
Tier 1 $2,500
Tier 2 $5,000
Tier 3 $7,500
Tier 4 $10,000
Forefront will not request the prepayment of fees more than $1,200 more than six months in advance.
For consulting services, the investment advisory agreement between Forefront and the client will continue
in effect until terminated by either party. For stand-alone financial planning services, the agreement
between Forefront and the client will terminate upon delivery of the plan or completion of the service.
Independent Managers
Should Forefront recommend client assets be placed with an Independent Manager available through the
Adhesion platform, a separate, additional fee of up to 0.50% annually will be charged to the client. This fee
covers the services of the independent manager, as well as the Adhesion platform fee for management of
the program, including facilitating and communicating trades to the custodial firm. The Adhesion fee will
be deducted from the client’s assets along with Forefront’s fee described above. This fee is separate and
distinct from Forefront’s fees.
Family Office Services
Forefront’s family office service fees are negotiable, but the full range of services generally range from
$10,000 to $100,000 on an annual fixed fee basis depending upon the level and scope of the services and
the professional rendering the services. The fee for these services is separate and distinct from the
investment management services noted directly above. Calculations for the initial fee/retainer may be
estimates based on the projected assets under advisement.
Reporting Fee
Forefront offers select clients consolidated account reporting services at an additional fee, as detailed in a
written agreement. For an agreed upon flat rate fee, or variable fee based on assets under management,
clients can be provided with a consolidated account report of all the client’s assets, including positions not
under Forefront’s management. Clients are either invoiced for this additional service or have given
Forefront permission to debit their account.