Hopwood Financial Services Inc

ITEM 5 – FEES & COMPENSATION
Investment Management Fees
Investment management services are offered on the following asset-based, tiered fee schedule:

                         Account Value                                        Annual Fee Rate
                                                                                 Not to Exceed

                         Up to and including $1,000,000                             1.00%
                         $1,000,001 up to and including $4,000,000                  0.75%
                         $4,000,001 up to and including $7,000,000                  0.50%
                         $7,000,001 up to and including $10,000,000                 0.40%
                         Greater than $10,000,000                                   0.30%

This is a tiered fee schedule, which means the actual fee is charged on each amount at the respective rate and is
reduced only for the amount above that threshold.
Investment Management fees will be debited from the client’s account quarterly, in arrears, by the custodian as
instructed by the Firm. The investment management fee is calculated by multiplying the portion of the Account’s total
market value that falls within each tier by one-fourth of that tier’s annual percentage rate (e.g., 1.00% ÷ 4 = 0.25%),
then summing the totals.

Hopwood Financial Services, Inc.                                                                                 Page 7 of 14

                                                                            FORM ADV PART 2A: DISCLOSURE BROCHURE

     Hopwood Financial Institutional Bond Program
     In conjunction with the Firm’s Investment Management Services, we may allocate a portion of a client’s
     investment assets among unaffiliated Independent Managers as part of the Firm’s Institutional Bond Program.
     Client assets managed through the Institutional Bond Program will be subject to an additional annual fee of up
     to 0.11%, billed quarterly in advance by the Independent Manager. Institutional Bond Program accounts are
     subject to a minimum asset level of $125,000. Clients who do not wish to participate in the Firm’s Institutional
     Bond Program may direct us, in writing, accordingly.
Unless otherwise agreed to in writing, we will combine the account values of family members (i.e., spouse and
dependent children) living in the same household to determine the applicable management fee. Combining account
values may increase the total managed assets, which could result in a reduced management fee based on the
breakpoints in our tiered fee schedule.
Investment management fees will be deducted first from any money market funds or cash balances. If such assets
are insufficient to satisfy payment of such fees, a portion of the account assets will be liquidated to cover the fees.
Investment management services begin when assets begin to fund the account. For the beginning calendar quarter,
fees will be adjusted pro-rata based upon the number of calendar days in the calendar quarter that the agreement
was effective. Most clients authorize the Firm to deduct fees automatically from their brokerage accounts, but clients
may request that we send quarterly invoices to be paid by check. In either case, a copy of the bill is provided to each
client stating the amount that was charged and how the fee was calculated.
The Firm reserves the right to charge a new account processing fee of up to $350 to defray the cost of transfers,
paperwork and the monitoring of transfers from existing accounts. Calculation of distributions, issuance of checks,
special reports and other services, which are not routine investment management services, may be billed on an
hourly basis at the then prevailing rates (current maximum of $250/hour). All fees are to be billed and are due after
services are rendered.
The Firm has waived or negotiated lower fees for certain clients such as charitable organizations, employees’ family
members or special circumstances. In accordance with the foregoing, investment advisory fees are negotiable at our
discretion, depending upon objective and subjective factors including but not limited to: the amount of assets to be
managed; portfolio composition; the scope and complexity of the engagement; the anticipated number of meetings
and servicing needs; related accounts; future earning capacity; anticipated future additional assets; the
professional(s) rendering the service(s); prior relationships with the Firm and/or its representatives, and negotiations
with the client. As a result of these factors, similarly situated clients could pay different fees, the services to be
provided by the Firm to any particular client could be available from other advisers at lower fees, and certain clients
may have fees different than those specifically set forth above.
Either the client or the Firm may terminate the Investment Advisory Agreement at any time. The client is responsible
for paying for services rendered up to and including the termination of the Agreement. If a client terminates the
Investment Management Agreement with the Firm in the middle of a billing period, we will invoice the client and
deduct the applicable fee (unless notified otherwise) for an amount that is prorated based on the number of days that
the account was managed during the quarter. If the client’s account is managed in the Institutional Bond Program
and billed in advance, the client shall receive a prorated refund of the quarterly management fee based on the number
of days remaining in the quarter after the termination notice takes effect.
     Cash Balances
     The Firm treats cash as an asset class. As such, unless determined to the contrary by the Firm, all cash positions
     (money markets, etc.) shall be included as part of assets under management for purposes of calculating our
     advisory fee. At any specific point in time, depending upon perceived or anticipated market conditions/events
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ITEM 7 – TYPES OF CLIENTS
The Firm generally provides customized investment management and financial planning services to high-net-worth
individuals and associated trusts, estates, pension and profit-sharing plans, and other legal entities. The Firm’s
minimum relationship size for Investment Management services is generally $750,000, but this amount may be
negotiable. There is no minimum asset size for financial planning and consulting services.