Item 5 - Fees and Compensation
Third-Party Wrap Programs Fees
Hays Advisory Part 2A Page 6 of 24
A wrap fee generally includes execution and custodial services provided by the wrap program sponsor.
We typically serve in the role of sub-advisor through the wrap program and receive annual fees from
0.25% - 0.50% of the value of accounts participating in a third-party wrap program. Investors should
review the sponsor’s disclosure brochure for details regarding any specific wrap program.
The minimum portfolio value generally ranges from $50,000 - $100,000 depending on the particular wrap
program. Should the market value of your account fall below the stated minimum, as agreed to in your
Agreement, because of withdrawals, distributions, or your request to transfer account assets, we will have
the right to require that additional monies be deposited to bring the account value up to the required
minimum, or terminate the account. In some circumstances, minimum account values may be negotiable.
Depending on the particular program, the wrap fee you pay may also include our advisory fee, which
would be payable by the sponsor to us. Other programs may require us to enter into a separate agreement
with you, in which case you would pay us directly by automatic fee deduction via the custodian unless
you otherwise request in writing to be invoiced quarterly.
When one or more Managers are utilized, the Manager(s)’ fees will be separate from and in addition to
Hays Advisory’s fee.
Model Fees on Third-Party Platforms
Fees for Model Portfolio recommendations are individually negotiated with each Third-party Platform
where our models are offered. We do not maintain a standard fee schedule for such services. Your
broker/dealer, investment adviser, or other financial services company will make arrangements with you
to invoice you or automatically deduct our Model Provider Fee from your account, which would be
payable by the that firm to us. Specific fee arrangements will be described fully in your agreement with
your financial advisor, broker/dealer and/or custodian.
Hays Advisory’s Research Reports or other Publications
The Individual Subscription to HaysAdvisory.com is $275 annually and provides subscribers with the
following reports. Hays Advisory generally releases these reports according to the described schedule, but
occasionally a holiday or other unusual circumstance may cause a variance.
Hays Market Indicators – Daily
60+ market indicators updated each day.
Hays World Wrap – Mondays
Summary of the previous week’s investment scene from asset classes, bonds, commodities, real
estate, andinternational equities, along with US sectors and styles.
Hays Sector Survey – Once a month, on the first Wednesday of the month
A summary of our current proprietary sector rankings, including charts and written update.
The annual subscription fee is not negotiable and is paid yearly in advance of publication. There is no
early cancellation/refund policy. Subscribers will be opted into an auto-renewal process for future
renewals. Subscribers will have a chance to opt-out of this auto-renewal process via a notice that will be
sent 14 days prior to each renewal.
Hays Advisory Part 2A Page 7 of 24
General Advisory Fee Information for Separately Managed Accounts
Clients enter into one of two fee arrangements. Generally, clients elect to pay management fees to Hays
Advisory separately from the brokerage expenses of the account. Accordingly, client accounts pay a
management fee, plus the cost of transactions in the account. The brokerage expenses may take the form
of asset-based pricing, meaning that the broker/dealer charges the account a flat-rate percentage to cover
all brokerage expenses, or these expenses may be assessed on a per-trade basis. Please see Item 12 -
Brokerage Practices for additional information.
Alternatively, some clients may engage in the Hays Advisory Wrap Program. The Wrap Program fee
structure includes the brokerage expenses (e.g., commissions, ticket charges, etc.) of the account as well
as the management fee paid to Hays Advisory. Under this inclusive billing alternative, Hays Advisory
will assess one client fee that captures the management, brokerage and administrative portions
collectively. Inasmuch as Hays Advisory pays to broker/dealers the transaction and execution costs
associated with client accounts, this can create a disincentive for Hays Advisory to trade securities in
accounts.
In either of these arrangements, the fees noted above are separate and distinct from the internal fees and
expenses charged by third party managers, mutual funds, ETFs, or other investment pools to their
shareholders (generally including a management fee and fund expenses, as described in each fund’s
prospectus or offering materials). The client should review all fees charged by funds, brokers, Hays
Advisory and others to fully understand the total amount of fees paid by the client for investment and
financial-related services. Please see Item 12 - Brokerage Practices for additional information.
Fee Collection
Portfolio management fees are generally payable quarterly, in advance. If management begins after the
start of a quarter, fees will be prorated accordingly. For our direct advisory services described above, we
receive our fees by automatic fee deduction via the custodian unless you otherwise request in writing to
be invoiced quarterly. Regardless of the method you choose, you will be solely and directly responsible
for all fees, including fees other than those related to the services we provide.
If you are accessing our services through a third-party Wrap Program, please see their Wrap Program
Brochure for more information regarding that Program’s options for collection of the wrap fee. Some may
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