Item 5 Fees and Compensation
Portfolio Management Fees:
Forte Capital’s investment management fee schedule is as follows:
Assets Under Management Maximum Annual Fee
First $1 million 1.00%
Next $2 million 0.90%
Next $2 million 0.85%
Next $4 million 0.65%
Next $6 million 0.50%
Next $15 million 0.40%
We bill our discretionary and non-discretionary clients on a quarterly basis and are paid in advance using a fee
schedule clearly described in each client’s investment management agreement. Forte Capital, in its sole
discretion, may charge a lesser investment management fee and/or reduce or waive its portfolio minimum based
upon certain criteria (i.e. anticipated future earning capacity, anticipated future additional assets, dollar amount
of assets to be managed, related accounts, account composition, negotiations with client, etc.). The fee will
equal the applicable percentage of the market value of the assets in client account(s) on the last business day of
the preceding calendar quarter (e.g., billing for the quarterly period January through March will be based on
December's ending market value). In the event that the relationship is commenced or dissolved in the middle of
a billing period, the fees will be pro-rated on a daily basis for the period outstanding and paid/refunded
accordingly, as detailed in the investment management agreement. There is no fee adjustment as a result of
cash/investment outflows/inflows from existing account(s) in the middle of a billing period. Generally, Forte
Capital has the authority to deduct fees from client accounts, however, some clients pay by check. Some ERISA
plans, however, are billed under different terms, as individually agreed upon with each ERISA plan.
Either the client or Forte Capital can terminate a non-ERISA investment management agreement in writing and
is considered effective two (2) business days after being sent by U.S. mail or electronically or else when actually
received by the other party. For ERISA Service Agreements, a notice of termination must be in writing and is
effective thirty (30) business days after being sent by U.S. mail or electronically or else when actually received
by the other party. If the client terminates the custodian account linked to the separately managed account with
us, or if the client links the account(s) to another advisor, or if the client transfers all of the assets in the account,
Forte Capital will consider that to constitute a notice of termination effective on the date of the above actions.
Forte Capital compensates several of its employees based on a percentage of new business generated and
client retention.
Financial Planning Fees:
Forte Capital may provide financial planning services to most discretionary investment management clients at
no additional cost. Some non-discretionary investment management clients may have a fixed fee arrangement,
typically ranging from $250 to $500 per year. Some clients may pay the Firm for the services of our
professional personnel at our then-current hourly rate, typically ranging from $150 and $250 per hour. Our rates
are subject to periodic revision. We charge for the time our professional personnel spend on client accounts,
including time spent in meetings with clients and others, time spent on telephone calls and other
communications, and time spent on study, planning, analysis, preparation of reports and other work done by our
professional personnel. We will charge annually in advance for this service. Payments are due 30 days after
receipt of our invoice.
Investment Consulting Services:
Fees for these services are negotiated based on a percent of assets or a fixed-fee, depending on the level of
services provided, and are charged in advance. Forte Capital, in its sole discretion, may waive these fees based
upon certain criteria (i.e. anticipated future earning capacity, anticipated future additional assets, dollar amount
of assets to be managed, related accounts, account composition, negotiations with client, etc.).
Important Additional Information
Fees in Advance of Service:
Under no circumstances do we require or solicit payment of fees in excess of $1,200 more than six months in
advance of services rendered.
Use of Mutual Funds and ETFs
Forte utilizes mutual funds and exchange traded funds for its client portfolios. In addition to Forte’s investment
advisory fee described at Item 5 below, and transaction and/or custodial fees discussed above and below, clients
will also incur, relative to all mutual fund and exchange traded fund purchases, charges imposed at the fund
level (e.g. management fees and other fund expenses).
All fees paid to Forte Capital for investment advisory services are separate and distinct from the fees and
expenses charged by Exchange Traded Funds ("ETFs") to their shareholders. These fees and expenses are
described in each ETF's prospectus. These fees will generally include a Trustee fee, license marketing fee and
other operating expenses. There may be additional transaction fees charged by the custodian.
Mutual Fund Share Classes:
Custodians such as Schwab generally offer multiple share classes of certain mutual funds. Generally,
custodians offer both non-transaction fee funds (“NTF Funds”) and transaction fee funds. NTF Funds are
available without a transaction fee, but typically have higher internal expense charges as referenced above.
Transaction fee funds generally have lower internal expense charges, but require that the client pay a
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