Item 5 – Fees and Compensation
GeoWealth generally structures fees and compensation based on the relationship established with
the primary investment adviser including:
• Sub-advisory relationships: Fees are set by an agreement between the primary investment
adviser and GeoWealth
• Co-advisory or Direct relationships: Fees are set by an agreement between GeoWealth and
the end client or primary investment adviser
The exact fees and other terms will be outlined in the agreement signed upon opening as fees are
negotiated.
GeoWealth offers several different products/services for investment advisers and their clients. Each
product/service provided can be billed separately (“à al carte”), using a maximum fee model (“Flat
Fee”), or at a single enterprise-level fee. Except for accounts custodied at Goldman Sachs,
GeoWealth does not offer a wrap fee program where clients are charged a single, bundled fee.
Therefore, clients may be charged separate fees for investment advice, brokerage services,
administrative expenses, tax tools and other fees and expenses.
A la Carte (separate) Billing: fees include but are not limited to: platform fees, money
manager fees, and per account fees. The maximum platform fee is 0.5% and the maximum
per account fee is $100 per account per year. The money manager fee rate is dependent on
the fee rate set by the money manager and will vary.
Flat Fee Billing (not available to new clients): GeoWealth is compensated at an annual fee
of up to 0.35% per account with a maximum client annual household flat dollar fee
depending on the services provided. Fees for households that are in excess of $3 million are
charged an additional fee of $500 for each $1 million over $3 million.
Single Enterprise-level fee: the fee rate is customized based on the adviser’s unique
circumstances. The fee schedule often includes a minimum fee that will vary depending on
the circumstances surrounding the relationship.
Note: Accounts can be charged a minimum account fee but is subject to an agreement with each
client’s primary investment adviser.
Each investment adviser working with GeoWealth can select the billing methodology and timing of
their choice. The billing settings available are limited depending on the type of services selected by
the Adviser. Billing settings are highly customizable and include the ability to change the fee rates
based on asset classes, sub-accounts, securities, margin balances, and also include the ability to bill
on cash, among other settings. Fees can be debited by GeoWealth or invoiced to the primary
investment adviser. GeoWealth’s fees are charged
• monthly in arrears,
• quarterly in arrears,
• monthly in advance, or
• quarterly in advance.
Any billing methodology must be mutually agreed upon by the client’s investment adviser and
GeoWealth. By default, all assets in client accounts are billed on net of margin balances.
Should an investment advisory relationship end prior to completion of the advance billing period,
clients are entitled to a refund for unearned investment advisory fees. The amount of each client’s
refund is calculated based on the following inputs:
• dollar value of the account,
• outflows or inflows of assets,
• number of days in the billing period elapsed, and
• billing rate.
GeoWealth will calculate the fee refund and facilitate a credit to the client for it. Given the unique
aspects of each client’s billing configuration, the inputs used may vary.
Client accounts are held at a qualified custodian. Qualified custodians charge various fees that are
in addition to fees charged by GeoWealth. These fees can include but are not limited to:
• ticket charges,
• trade commissions, and
• other transaction fees.
Note: Certain qualified custodians may no longer charge trade commissions, however that is
determined by each client’s unique relationship with their custodian. Please see Item 12 –
Brokerage Practices for more detailed information.
The individual investments held within each client’s account may charge fees in addition to the fees
charged by GeoWealth and each client’s qualified custodian. For example, ETFs typically charge
management fees to cover their investment advisory functions as well as fees for operating and
administrative expenses. These fees, typically referred to as an “Expense Ratio”, are generally
deducted from the investment value and are not charged by GeoWealth. Additionally, investment
model managers, including GeoWealth, may charge additional fees on top of those fees charged by
ETF providers. Some of those fees are negotiable. Please read Item 8 for more information about
the investment process surrounding model portfolios. Clients should read each investment’s
prospectus or similar document to obtain a detailed understanding of its fees and expenses as well
as other important information. Clients are responsible for all custodial fees (except where subject
to wrap fee) and any fees associated with mutual funds and other transactions.
When fixed income securities, such as Corporate and Municipal bonds, are purchased or sold, the
executing broker is compensated for the execution of the security through a bid-ask spread. In
other words, if you are purchasing Municipal Bond, the executing broker purchases it from the
seller at a specified price and sells it to you at a higher price. Each transaction for a fixed income
security is negotiated directly between GeoWealth (or our agent) and the executing broker.
When GeoWealth calculates an asset-based fee, the value of the assets is calculated using the price
maintained within our platform. In certain circumstances, a particular security may have different
prices at different pricing sources. GeoWealth’s platform only maintains a single price for each
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