Item 5: Fees and Compensation
Halter Ferguson Financial’s fees are stated in the Investment Management Agreement. The fee for
discretionary portfolio management services is based upon the following fee schedule:
Household Assets Quarterly Fee Annualized Fee*
First $1,000,000 0.2500 % 1.00 %
Over $1,000,000 0.1250 % 0.50 %
*Minimum client relationship size is generally $2,000,000, but this amount is negotiable.
This fee includes financial planning services, is assessed in arrears, accrued daily, and billed quarterly
based on the market value of the Household Assets, including cash, on the last day of the previous
quarter as valued by the Custodian. Although we have established the aforementioned fee schedule,
we retain the discretion to negotiate alternative fees or waive the minimum fee/minimum client
relationship size on a client-by-client basis. Client facts, circumstances, and needs are considered in
determining the fee schedule. These include the complexity of the client, assets to be placed under
management, anticipated future additional assets; related accounts; portfolio style, account
composition, reports, among other factors. The specific annual fee schedule is identified in the contract
between the adviser and each client. We may group certain related client accounts for the purposes of
achieving the minimum client relationship requirements to determine the Household Assets.
REBELLIONAIRE
For limited, specific clients, deemed “REBELLIONAIRES”, we manage concentrated investments with the
selective use of options strategies. The fee for these services is based upon the following fee schedule:
Household Assets For Quarterly Fee Applicable to Annualized Fee*
Tier Household Assets in Tier Applicable to
Household Assets in
Tier
First $5,000,000 0.2500 % 1.00 %
Over $5,000,000 0.1250 % 0.50 %
*Minimum client relationship size of $2,000,000.
This fee includes financial planning services, is assessed in arrears, accrued daily, and billed quarterly
based on the market value of the Household Assets, including cash, on the last day of the previous
quarter as valued by the Custodian. Although we have established the aforementioned fee schedule,
we retain the discretion to negotiate alternative fees or waive the minimum client relationship size on a
client-by-client basis.
Clients may pay Halter Ferguson Financial fees directly. Fees may also be directly deducted from the
client’s custodian account. Halter Ferguson Financial does not and will not have physical custody of
client funds or securities.
In addition to the fee paid directly to Halter Ferguson Financial, the client will pay fees for custodial
services, and for brokerage and other costs associated with client account transactions. Custodial fees
vary by the size of the account and account type. Brokerage and other transactions costs also vary
based on the level of account activity. Halter Ferguson Financial may recommend that clients establish
brokerage accounts with Charles Schwab & Co., Inc. (“Schwab”) or with Fidelity Institutional Wealth
Services (“Fidelity”) to maintain custody of clients’ assets and to effect trades for their accounts.
Schwab and Fidelity are independent and unaffiliated registered broker-dealers and members of FINRA
and SIPC. For Halter Ferguson Financial client accounts maintained in their custody, Schwab and Fidelity
generally do not charge separately for custody but are compensated by account holders through
transaction-related fees for securities trades that are executed through Schwab or Fidelity or that settle
into their accounts.
Clients may also incur other fees and costs. If client assets are invested in mutual funds, the client will
pay indirectly to the mutual fund company management and other fees for those funds (the mutual
fund fees are described in the funds’ prospectuses). If a separate account manager is retained for a
client’s account, the client will also be responsible for paying directly to any separate account manager
(and the custodian of that account) any separate account fees required for that account. Separate
account fees vary by the size of the account and type of account, and will be disclosed to the client. The
services may cost the client more or less than purchasing such services separately depending upon
account fees, trading costs, and/or active management fees.
Clients will incur brokerage and other transaction costs. Please see Item 12 for more information about
Halter Ferguson Financial’s brokerage practices.
SELECTION AND MONITORING OF THIRD-PARTY MONEY MANAGERS
We also offer advisory management services to our clients through our Selection and Monitoring
of Third-Party Money Managers programs (hereinafter, "Programs").
We provide the client with an asset allocation strategy developed through personal discussions in which
goals and objectives based on the client's particular circumstances are established. Based on the client's
individual circumstances and needs we will then perform management searches of various unaffiliated
registered investment advisers to identify which registered investment adviser's portfolio management
style is appropriate for that client. Factors considered in making this determination include account size,
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