Item 5 - Fees and Compensation
Wealthspire’s fee for wealth management services shall be an asset-based fee calculated as a
percentage of the market value of the assets managed and payable in quarterly installments at the
beginning of each calendar quarter. Fees are based on the net market value of the client account
on the last day of the prior quarter. The asset base for the initial quarter shall be calculated on a
pro rata basis commencing on the day the assets are initially allocated to Wealthspire for wealth
management services. After the initial quarter, the fee, which is compounded using an average
daily balance, may be adjusted in the next billing cycle to account for deposits, withdrawals and
asset allocation. In limited circumstances, Wealthspire may bill client accounts in arrears or on a
flat fee basis also paid on a quarterly frequency.
Wealth Management Services
For custom services, the fee schedule is typically as follows:
1.25% on the first $500,000
1.00% on the next $501,000 -$1,000,000
0.90% on the next $1,000,001 - $3,000,000
0.80% on the next $3,000,001 - $5,000,000
0.70% on the next $5,000,001 - $10,000,000
0.60% on assets in excess of $10,000,000
The minimum account size is $1,000,000 although this requirement may be waived from time to
time in Wealthspire’s discretion. While it is not Wealthspire’s general policy, Wealthspire may
negotiate fees on a client account different than those shown above, or on a “flat fee” basis, based
upon certain criteria such as, but not limited to, the size or complexity of a relationship, portfolio
composition, type of assets, anticipated future additional assets, dollar amounts of assets to be
managed or related accounts. Therefore, client relationships exist where the fees are higher or
lower than the fees described in the schedule above.
Prosperity Program Services
For these services, the fee schedule is as follows:
1.25% on assets up to $1,000,000
The minimum account size is $100,000 although this requirement can be waived from time to time
at Wealthspire’s discretion. This fee also can be different from above based on the referral/solicitor
arrangement discussed later in this brochure. Prosperity Program accounts larger than $1,000,000
will have pricing applied as set forth in the custom wealth management services above.
Financial Planning and Consulting Services
We generally charge fees for our financial planning and consulting services on a fixed-fee basis,
depending on the nature and complexity of your circumstances. In assessing an appropriate fee
level for each client, Lenox considers each client’s net worth, current estate planning status,
income, marital and family status, citizenship, types of current investments and insurance, other
professional service providers, and business and personal activities. We typically require a
minimum new worth of $1,000,000 for our financial planning consulting services. Each client’s
agreement will include the specific fee agreed upon for that client. Fees for financial planning and
consulting services are negotiable, and can be included within the fees charged for our other
services. We will provide you a quote at the beginning of our arrangement and memorialize the
terms of our arrangement in an Agreement you sign with us. Fees are negotiable and your fees can
change based upon the complexity of your financial situation and anticipated needs, among other
factors. We anticipate that the fee for an annual update will not exceed your fees for the initial plan
although this may not always be the case.
Payment Terms and Additional Costs
A client can terminate their Agreement by providing Wealthspire at least 30 days’ advance written
notice to establish a termination date. The portfolio value at the end of the prior quarter would be
the basis for the final fee computation, adjusted for the number of days during the billing quarter
prior to termination. Any unearned fees paid in advance will be promptly refunded.
Investment management fees are billed quarterly, in advance. Therefore, fees become due at the
beginning of each three-month billing period. Clients will authorize Wealthspire to debit fees
directly from a designated client account. Only in the limited circumstance where the wealth
management fee cannot be paid directly from a client’s account, such will be invoiced. In such
cases, invoices are due and payable in full upon receipt.
Clients will enter into separate custodial/clearing agreements with the applicable custodian for
their account. Custodians can charge separate custody fees and transaction fees on purchases or
sales of securities, mutual funds and exchange-traded funds recommended by Wealthspire. Such
fees are charged by the custodian, paid at the time of the transaction and represent an additional
expense to clients. Occasionally, for best execution purposes or other business reasons,
Wealthspire may choose a broker different from the client’s custodian, and that broker may charge
commission to execute the trade, which will be borne by the client. Wealthspire is committed to
achieving best execution and to minimizing trading and related costs. Please refer to the
“Brokerage Practices” section of this brochure for more information on Wealthspire’s selection
and review of brokers.
Clients can bear additional costs and expenses in addition to the Wealthspire wealth management
fees described above. For example, if a client’s portfolio is managed by a third-party advisor, that
advisor may charge a separate management fee for their services. Some investments in a client
account such as mutual funds, separate accounts, limited partnerships, and other vehicles are
subject to management fees charged by the managers/sponsors of such investments. With respect
to mutual funds, such fees are generally referred to as expense ratios. For example, an expense
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