Item 5: Fees and Compensation
NewEdge offers investment advisory services on a fee basis, which includes fixed fees or fees based
upon the value of its assets under management (collectively, “Advisory Fees”). Before engaging
NewEdge to provide investment advisory services, clients are required to enter into an Investment
Advisory Agreement with NewEdge setting forth the terms and conditions of the engagement
(including termination), describing the scope of the services to be provided, and the fee that is due
from the client.
Wrap vs Non-Wrap Fees
Clients have the choice to pay NewEdge an “unbundled” fee, whereby they pay a separate fee for (1)
our investment advice, (2) third-party brokerage services (including commissions) charged by broker
dealers and (3) management fees charged by Independent Managers or NEIS.
If you choose to pay us an Advisory Fee as opposed to a wrap fee, you will generally pay NewEdge a
lower amount. However, you would need to separately pay a broker dealer for the cost of trade
execution and custody. For strategies that include a significant amount of trading, your total costs and
expenses could be higher in an “unbundled” fee structure.
Many of our clients choose to be charged a single “wrap” fee. This “wrap” fee is a combination of fees
covering (1) our Advisory Fees, (2) third party brokerage and trading costs, commissions, custody fees,
and fees for platform administration, and reporting services, and (3) investment management fees
charged by the Independent Managers and/or NEIS (“Manager Fees”). For more information about the
Firm’s wrap fee program, please refer to Appendix 1 to NewEdge’s ADV Part 2A – NewEdge Wealth, LLC
Wrap Fee Program Brochure.
Under NewEdge’s wrap program, the client generally receives investment advisory services, the
execution of securities brokerage transactions, custody, and reporting services for a single specified
fee. Participation in a wrap program can cost the client more or less than purchasing such services
separately. The terms and conditions of a wrap program engagement are more fully discussed in
NewEdge’s Wrap Fee Program Brochure.
Conflict of Interest.
Because wrap program transaction fees and/or commissions are being paid by NewEdge to the
account custodian/broker-dealer, NewEdge could have an economic incentive to maximize its
compensation by seeking to minimize the number of trades in the client's account. See separate Wrap
Fee Program Brochure for further details.
NewEdge Advisory Fee
Advisory Fees may be charged in one of the following ways, as described in the client’s Investment
Advisory Services Agreement and/or applicable Service Summary. Clients may also be subject to a
minimum annual fee, as outlined in their Service Summary.
1. Fixed Annual Fee. In certain cases, NewEdge charges a fixed annual fee for advisory services.
This fee is negotiated based on the scope and complexity of the engagement and does not
vary with the amount of assets under management unless otherwise stated in the applicable
agreement.
2. Flat Asset-Based Fee. If the Advisory Fee is charged using a flat asset-based fee schedule,
NewEdge applies a single fee rate to all assets in the account. This fee is negotiated based on
the scope and complexity of the engagement
3. Tiered Rate Fee Schedule. If the Advisory Fee is charged using a tiered rate schedule,
NewEdge applies different fee rates to portions of the portfolio based on the stated
breakpoints. Assets in each tier are billed at the rate for that tier, resulting in a blended fee
across the entire portfolio. For purposes of applying the tiered schedule, NewEdge Wealth
may, at its discretion, aggregate accounts for members of the same household or apply
another methodology determined by the PWA. Aggregation does not automatically apply to
related accounts held under separate entities, trusts, or custodians, and assets subject to
ERISA may not be aggregated for tiered rate fee schedules.
NewEdge prices its advisory services based on a combination of objective and subjective factors. Fees
vary depending on the type, amount and market value of assets under management, the complexity
of the engagement, and the scope of the investment advisory and consulting services provided. Other
factors influencing pricing include related accounts, employee accounts, competition, and
negotiations. As a result of these factors, similarly, situated clients pay different fees, and comparable
services may be available from other advisers at lower costs. Clients and prospective clients should
consider this when evaluating NewEdge’s services.
Legacy Advisory Fees
Certain of our PWAs were affiliated with NewEdge Advisors (and its predecessor) prior to becoming
affiliated with NewEdge Wealth. When the PWAs affiliated with NewEdge, we assumed the existing
advisory agreements and fee schedule for these accounts (“Legacy Accounts”). Fees for Legacy
Accounts are generally calculated quarterly in advance, based on the market value of the account at
the prior month-end. The fee is calculated for a three-month period and deducted at the start of the
quarter. Accounts are divided into three billing cycles: Cycle 1 bills in January, April, July, and October;
Cycle 2 bills in February, May, August, and November; and Cycle 3 bills in March, June, September, and
December. While some Legacy Accounts may be grouped for internal tracking, none of these Legacy
Accounts are householded for fee breakpoints.
Investment Manager Fees
To the extent a client invests with an Independent Manager through our SMA Program, the Client will
also pay a Manager Fee. Manager Fees generally range from 0.10% to 1.50% of AUM. These fees are
separate and distinct from NewEdge’s advisory fees. NewEdge is not responsible for and does not
receive any of these fees or charges.
NewEdge Investment Solutions Manager Fees
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