Item 5 – Fees and Compensation
In certain circumstances, all fees, account minimums and their applications to family
circumstances may be negotiable.
Nova has contracted with Buckingham Strategic Partners (), for services
including trade processing, collection of management fees, record maintenance, report
preparation, marketing assistance, and research. Nova has also contracted with
Buckingham Strategic Partners for sub-advisory services with respect to clients’ fixed
income accounts. Nova pays a fee for Buckingham Strategic Partners services based on
management fees paid to Nova on accounts that use Buckingham Strategic Partners
Advisor Services. The fee paid by Nova to Buckingham Strategic Partners consists of a
portion of the fee paid by clients to Nova and varies based on the total client assets
participating in Buckingham Strategic Partners Advisor Services through Nova. These fees
are not separately charged to advisory clients.
The specific manner in which fees are charged by Nova is established in a client’s written
agreement with Nova. For investment management & employee benefit plan services,
clients will be invoiced in advance at the beginning of each calendar quarter based upon
the value (market value based on independent third party sources or fair market value in
the absence of market value; client account balances on which Nova calculates fees may
vary from account custodial statements based on independent valuations and other
accounting variances, including mechanisms for including accrued interest in account
statements) of the client’s account at the end of the previous quarter. New accounts are
charged a prorated fee for the remainder of the quarter in which the account is incepted
(date of first trade).
For Investment Management and Employee Benefit Plan Services, Nova will request
authority from the client to receive quarterly payments directly from the client's account
held by an independent custodian. Clients may provide written limited authorization to
Nova or its designated service provider, Buckingham Strategic Partners, to withdraw fees
from the account. Clients will receive custodial statements showing the advisory fees
debited from their account(s). Certain third-party administrators will calculate and debit
Nova’s fee and remit such fee to Nova.
A client agreement may be canceled at any time, by either party, for any reason upon
receipt of 30 days written notice. Upon termination of any account, any prepaid, unearned
fees will be promptly refunded.
Nova’s fees are exclusive of brokerage commissions, transaction fees, and other related
costs and expenses which shall be incurred by the client. Clients may incur certain charges
imposed by custodians, brokers, third party investment and other third parties such as fees
charged by managers, custodial fees, odd-lot differentials, transfer taxes, wire transfer and
electronic fund fees, and other fees and taxes on brokerage accounts and securities
transactions. Mutual funds and exchange traded funds also charge internal management
fees, which are disclosed in a fund’s prospectus. These fees will generally include a
management fee and other fund expenses. All fees paid to Nova for investment advisory
services are separate and distinct from the fees and expenses charged by mutual funds and
ETFs to their shareholders.
Such charges, fees and commissions are exclusive of and in addition to Nova’s fee, and Nova
shall not receive any portion of these commissions, fees, and costs.
Advisory Fees
Investment Management Services:
The annual fee for investment management services will be charged as a percentage of
assets under management, according to the schedule below:
Assets under management Annual Fee (%)*
First $1,000,000 1.00%
Next $1,000,000 0.90%
Next $1,000,000 0.80%
Next $2,000,000 0.65%
$5,000,000 or greater 0.60%
*A minimum annual fee of $6,000.00 will be assessed to all portfolios not meeting $1M
under management.
All accounts for members of the client’s family (husband, wife and dependent children) or
related businesses may be assessed fees based on the total balance of all accounts.
Employee Benefit Retirement Plan Services:
The annual fee for plan services will be charged as a percentage of assets within the plan.
Assets Under Buckingham Nova’s Annual Fee Total Fee
Management Strategic Partners’
Annual Fee
On the first $1,000,000 0.20% 0.70% 0.90%
On the next $4,000,000 0.15% 0.45% 0.60%
On the next $5,000,000 0.08% 0.25% 0.33%
On all amounts above 0.05% 0.15% 0.20%
$10,000,000
Certain pre-existing employee benefit retirement plan services clients may be on a
different fee schedule.
Financial Planning Services:
Financial planning fees will be charged in one of two ways:
1. As a fixed fee, typically ranging from $1,000 - $15,000, depending on the nature and
complexity of each client's circumstances and upon mutual agreement with the
client.
2. On an hourly basis, ranging from $260 - $300 per hour for professional time,
depending on the nature and complexity of each client's circumstances and upon
mutual agreement with the client. Lower rates may apply for administrative time.
An estimate for total hours will be determined at the start of the advisory
relationship.
Fees will be billed monthly and payable upon completion of the plan. Typically the financial
plan will be presented to the client within 90 days of the contract date, provided that all
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