Item 5 Fees and Compensation
INVESTMENT SUPERVISORY SERVICES ("ISS")
INDIVIDUAL PORTFOLIO MANAGEMENT FEES
Our annual fees for Investment Supervisory Services are based upon a percentage of assets under management and
generally range from 0.45% to 0.75%.
In most cases, clients are invoiced in advance at the beginning of each calendar quarter based upon the value
(market value or fair market value in the absence of market value, plus any credit balance or minus any debit
balance), of the client's account at the end of the previous quarter; however some clients are invoiced at the end of
each calendar quarter, depending on the client's broker-dealer. Typically, the James Capital Alliance, Inc.
management fees are generally deducted directly from the client's account by the client's custodian. The custodian
then sends management fees to James Capital Alliance, Inc.
Our services may be terminated, by the client or ourselves, at any time upon written notice to the other. In this
event, management fees will be refunded to the client's account on a pro-rata basis according to the number of
billing days left in the period.
James Capital Alliance, Inc. does not, itself, impose a minimum opening account size; however, most broker-
dealer managed account sponsors generally require a minimum investment of $100,000. The account size may be
negotiated under certain circumstances.
Limited Negotiability of Advisory Fees: Although James Capital Alliance, Inc. has established the aforementioned
fee schedule(s), we retain the discretion to negotiate alternative fees on a client-by-client basis. The managed
account is not normally negotiable, but may be if officers of the firm agree to do so. 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, the broker-dealer and each client.
Fees Billed in Advance or Arrears: Our advisory fees are charged in one of two ways as agreed upon with the
client:
• In advance: Advisory fees are billed in advance at the beginning of each calendar quarter based upon the
asset value (market or fair market value in the absence of market value, plus any credit balance or minus
any debit balance), of the client's account equity at the end of the previous quarter.
• In arrears: Advisory fees are billed in arrears at the end of each calendar quarter based upon the asset value
(market or fair market value in the absence of market value), of the client's account at quarter-end.
Clients are billed on a quarterly basis in accordance with the terms set forth in the Client Management Agreement.
INVESTMENT SUPERVISORY SERVICES ("ISS")
MODEL PORTFOLIO MANAGEMENT FEES
Our annual fees for Model Portfolio Management Services are based upon a percentage of assets under
management and are generally 0.25%.
Clients are invoiced in arrears at the end of each calendar quarter based upon the asset value (market or fair market
value in the absence of market value), of the client's account at quarter-end.
GENERAL INFORMATION
Termination of the Advisory Relationship: The client agreement may be terminated at any time, by either party,
upon written notice to the other. Said termination shall be effective immediately upon receipt of said termination
notice by the other party. Since advisory fees are generally billed quarterly in advance, James, or the custodian,
will refund the client's account after any such termination a pro-rata share of his or her fees, computed on a daily
basis for the 90-day quarter.
Wrap Fee Programs and Separately Managed Account Fees: Clients participating in separately managed account
programs may be charged various program fees in addition to the advisory fee charged by our firm. Such fees may
include the investment advisory fees of the independent advisers, which may be charged as part of a wrap fee
arrangement. In a wrap fee arrangement, clients pay a single fee for advisory, brokerage and custodial services.
Client’s portfolio transactions may be executed without commission charge in a wrap fee arrangement. In
evaluating such an arrangement, the client should also consider that, depending upon the level of the wrap fee
charged by the broker-dealer, the amount of portfolio activity in the client’s account, and other factors, the wrap
fee may or may not exceed the aggregate cost of such services if they were to be provided separately. Typically,
the broker at the managed account sponsor will review with clients any separate program fees that may be charged
to clients.
Additional Fees and Expenses: In addition to our advisory fees, clients are also responsible for the fees and
expenses charged by custodians and imposed by broker dealers, including, but not limited to, any transaction
charges imposed by a broker dealer with which an independent investment manager effects transactions for the
client's account(s). Please refer to the "Brokerage Practices" section (Item 12) of this Form ADV for additional
information.
ERISA Accounts: James Capital Alliance, Inc. is deemed to be a fiduciary to advisory clients that are employee
benefit plans or individual retirement accounts (IRAs) pursuant to the Employee Retirement Income and Securities
Act ("ERISA"), and regulations under the Internal Revenue Code of 1986 (the "Code"), respectively. As such, our
firm is subject to specific duties and obligations under ERISA and the Internal Revenue Code that include among
other things, restrictions concerning certain forms of compensation.
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