Item 5 - Fees and Compensation
Frontier’s fees include compensation for the advisory and planning services, and other account-
related services. Frontier does not charge redemption/exit fees or transaction fees; however, the
custodian can charge some or all of the following: custodial fees, transaction fees, redemption fees
and/or commissions. These fees are independent of Frontier’s fees and will be disclosed by the
custodian.
All fees paid to Frontier for investment advisory services are separate from any fees and expenses
charged to shareholders of mutual fund shares, mutual fund companies, exchange-traded funds or
alternative pooled investment vehicles. A complete explanation of the expenses charged by a
mutual fund or alternative investment vehicle is contained in each fund’s prospectus. Additionally,
fees paid to Frontier are separate and distinct from any fees that are charged by a sub-adviser or
Frontier Wealth Management, LLC Form ADV Part 2A
a third-party money manager. Such third-party money manager or sub-adviser will be responsible
for charging and collecting their respective fees.
Lower fees for comparable services may be available from other sources.
Investment and Wealth Management Service Fees
The fee for Investment Management Services is generally a percentage of assets under
management. Fees that are based on a percentage of assets under management are applied to
the account asset value on a pro-rated basis, charged quarterly in advance.
The initial fee will be based upon the date the account is accepted for management by execution
of either the Investment Management Agreement or Wealth Management Agreement by Frontier
and the client, or when the assets are transferred to the recommended custodian. Thereafter,
the fee will be based on the market value of the account on the last day of the previous calendar
quarter and will cover the period from the first day of the following calendar quarter through the
last day of such calendar quarter. The market value will be determined as reported by the
custodian. Fees are generally assessed on all assets under management, including securities, cash
and money market balances. Margin debit balances do not reduce the value of assets under
management.
Fees vary based on the size of the account, complexity of the portfolio, extent of activity in the
account or other reasons agreed upon by Frontier and the client. Frontier’s fees range from
0.25% to 1.50% and will be negotiated between the client and Frontier and agreed upon in the
respective Agreement. This fee does not include any third-party money manager or sub-adviser
fees or fees or expenses assessed by mutual funds, exchange traded funds or custodians.
The fee for Wealth Management Services is generally based on a percentage of assets under
management or based on a predetermined fixed fee. The assets under management will be
determined and billed as described in the Wealth Management Agreement. If fees are to be
charged based on a fixed fee, the specific fee and the form of payment will be outlined and
predetermined in the Wealth Management Agreement between the client and Frontier.
For fees that are collected based on a percentage of assets under management, the client generally
authorizes Frontier to debit fees quarterly directly from their brokerage account. The custodian
will send a statement to the client, at least quarterly, indicating all amounts disbursed from the
account, including the amount of advisory fees. Clients are urged to review these statements
carefully.
Certain clients, upon request and approval from Frontier, pay the quarterly management fee by
submitting a check within 30 days of the invoice. An example would include where the client’s
account does not have sufficient funds or is restricted from direct withdrawal (e.g., 401(k) plan
assets).
Fees for Corporate Retirement Plan Services are generally based on plan size and services
rendered and will range between 0.20% and 1.00% as agreed upon with the client and Frontier.
Fees are generally quoted on a case-by-case basis, and are negotiable in certain
circumstances. Fees are generally paid quarterly in arrears and can sometimes be deducted
directly from the plan, but the plan sponsor of the company can elect to instead pay fees by check
or wire transfer.
Frontier Wealth Management, LLC Form ADV Part 2A
All fees for corporate retirement plan services paid to Frontier are separate and unrelated to any
fees or expenses assessed by mutual funds, exchange traded funds, outside investment managers,
recordkeepers, administrators, or custodians.
Financial Planning Services
Frontier offers Financial Planning Services and generally charges a fixed or hourly fee as agreed
upon between the client and Frontier. The specific manner in which the fees are charged is
established in the Financial Planning Agreement. Some retainer arrangements are priced based on
the complexity of work, especially when investment management is not the most significant part
of the relationship.
Advisory Services on Matters not Involving Publicly Traded Securities
On occasion, we provide advice to clients on matters not involving publicly traded securities
products or services. As stated previously, such matters include real estate, private equity and
venture opportunities. We will not typically charge any advisory fees in relation to advice on
these types of matters. However, should a fee be charged, the fee and form of payment will be
agreed upon in writing.
Fees Charged by the Funds
Management Fee
During the commitment period for a Fund, if applicable, a Fund pays Frontier an annual
advisory/management fee (“Management Fee”) equal to a certain percentage of the total capital
commitments (regardless of whether such capital has been called) of the investors in the applicable
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