O'Brien Capital Management Inc

Item 5 – Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for investment
management services. Each client shall sign an Investment Advisory Agreement that details the
responsibilities of OCM and the Client.
A.      Fees for Advisory Services
Investment Advisory Services
Asset-Based Fees – OCM’s annual fee for investment advisory services is 1.00% of the amount of assets
managed by OCM. This fee includes all investment recommendations and portfolio implementation,
unless the client contract states otherwise. The fee is calculated as described in Item 5.B. below.
Securities held in a portfolio managed by OCM will be independently valued by the custodian. OCM will
not have the authority or responsibility to value portfolio securities.
OCM, in its sole discretion may waive its stated minimum or charge a lesser management fee based upon
certain criteria (i.e., anticipated future earnings capacity, anticipated future additional assets, dollar
amount of assets to be managed, related accounts, account composition, pre-existing client, account
retention, pro bono activities, etc.).
Financial Planning Services
Hourly-Based Fees. OCM may render services on an hourly fee basis. The fee for hourly service is $300
per hour. Prior to engaging OCM on an hourly basis OCM will provide an estimate of hours necessary to
complete a project. Hourly fees are recorded during the project work and the Client will receive an invoice
for the fee.

                                      O’Brien Capital Management, Inc.
                                           48 Burd Street, Suite 209
                                              Nyack, NY 10960
                                   Phone 845-358-4930 | www.obriencm.com

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Flat Fees. OCM may render services on a flat fee basis. Flat fees will range from $500 - $3,000. The fee
amount and billing arrangements will be determined in advance and agreed to in writing. The services to
be provided will agreed to by contract. The fee will cover all aspects of the project.
B.      Fee Billing
Asset-Based Fees
Clients pay a quarterly Account Fee, in advance, based upon the market value of the assets under
management as of the last business day of the preceding calendar quarter. The fee is negotiable in certain
circumstances. Any such valuation shall not be deemed a guarantee of any kind with respect to the value
of those assets. As stated previously, all advisory fees are charged in advance, at the start of each calendar
quarter, based upon the fair market value of the assets in the portfolio as of the last business day of the
prior quarter. The initial fee will be payable when the account is established, prorated for the first partial
quarter, if applicable. Thereafter, the fee will be payable on the first day of each calendar quarter based on
the asset value of the account as of the last business day of the prior quarter. Additional deposits to the
account are subject to the same fee procedures.
Upon client’s written authorization, fees will be automatically deducted from the account. Clients will be
provided with a quarterly statement reflecting deduction of the advisory fee.
Hourly-Based Fee
Clients paying by an hourly fee will be monthly or upon completion of the work as agreed to by contract.
Hourly fees are documented during the project work and the client will receive an invoice for the fee.
OCM may bill up to 50% of the fee in advance of commencing any project work.
Flat Fees
Once the flat fee for the client is determined, OCM may bill up to 50% of the fee in advance of commencing
any project work. The balance of the fee is due upon completion of the work agreed to by contract.
C.       Other Fees and Expenses
Clients may incur certain charges imposed by financial institutions or other third parties such as custodial
fees, charges imposed directly by a mutual fund or exchange traded fund in the account, which shall be
disclosed in the fund’s prospectus (i.e., fund management fees) and other fees and taxes on brokerage
accounts and securities transactions. Additionally, clients may incur brokerage commissions and
transaction fees. Such charges, fees and commissions are exclusive of and in addition to the OCM fee.
D.      Advance Payments of fees and Termination
All advisory fees are charged in advance, at the start of each calendar quarter, based upon the fair market
value of the assets in the portfolio as of the last business day of the prior quarter.
If a client does not receive a copy of our Brochure at least 48 hours prior to entering into an advisory
agreement, the client may terminate the advisory agreement within five business days without penalty.
Thereafter, the advisory agreement may be terminated upon written notice. Upon termination, clients
will receive, where applicable, a prorated refund of any prepaid advisory fees. Such prorated refund will
be based upon actual services and termination costs incurred up to and at the time of termination of OCM’s
services.
E.      Compensation for Sales of Securities
OCM does not receive commission or any compensation for transactions in any client account. As a fee-
only adviser, OCM is paid only on the advice and investment management provided to clients based on
the assets under management in the clients’ accounts.

                                     O’Brien Capital Management, Inc.
                                          48 Burd Street, Suite 209
                                             Nyack, NY 10960
                                  Phone 845-358-4930 | www.obriencm.com

                                                                                              Page |7

Item 7 – Types of Clients
OCM may provide services to a variety of client types. Clients include:
           Individuals, including high net worth individuals, personal trusts, and estates
           Pension and profit-sharing plans – generally organized as a trust, investing the pooled assets
            of plan participants
           Charitable organizations – non-profit organizations that manage a pool of assets, and
            distribute funds according to a mandate or mission.
           Corporations – taxable entities organized for a specific business purpose, investing cash
            reserves
OCM generally imposes a minimum of $300,000 of assets under management for new clients; however,
OCM reserves the right and the sole discretion to waive this minimum under certain circumstances.
The relative percentage each client type currently represents is available on OCM’s Form ADV Part 1.
The actual mix of types of Clients changes over time based upon market conditions, business plans and
other factors. OCM does not specialize in, or actively seek any given client type. OCM is committed to
providing services to qualified investors, regardless of legal or corporate status.
Item 8 - Method of Analysis, Investment Strategies, and Risk of Loss
A.      Methods of Analysis
Fundamental Analysis – Mainly, OCM uses fundamental analysis in making investment decisions with
respect to investments in equities and fixed incomes instruments. Criteria used in fundamental analysis
could include economic indicators, current market conditions and other business indicators. These criteria
are usually ratios and trends that may indicate the overall strength and financial viability of the entity
being analyzed. OCM uses a number of macro-economic factors that include, but are not limited to:
           Inflation trends
           Monetary policy
           Political environment
           Market trends and volatility
           Current economic conditions
Issue specific factors include, but are not limited to:
           Price to earnings ratio
           Cash flow and dividend yield
           Management strength and stability
           Credit rating

                                     O’Brien Capital Management, Inc.
                                          48 Burd Street, Suite 209
                                             Nyack, NY 10960
                                  Phone 845-358-4930 | www.obriencm.com

                                                                                                  Page |8

           Growth estimates and trends
Other methods of analysis may be employed by OCM as deemed appropriate.
One method of analysis includes modern portfolio theory, which looks at certain criteria to construct
portfolios to optimize or maximize expected returns based on a given level of market risk, emphasizing
that risk is an inherent part of higher reward.
There are four basic steps involved in portfolio construction:
           Security valuation
           Asset allocation
           Portfolio optimization, the mix of securities in a portfolio
           Performance measurement
B.      Investment Strategies
OCM structures portfolios using various methodologies described above. Using our own methods OCM
believes that clients will benefit from having a portfolio of holdings invested in a variety of asset classes.
To the extent that these asset classes are non-correlated, the portfolio will experience returns with
mitigated risks.
At OCM each client’s situation is assessed on an individual basis and an appropriate investment program
is implemented to meet the specific needs of each client. OCM will not pursue strategies that are
speculative in nature.
C.      Risk of Loss
Investing in securities involves certain investment risks. Securities may fluctuate in value or lose value.
Clients should be prepared to bear the potential risk or loss.
OCM will work with the client in determining an appropriate strategy based on their tolerance for risk
and other factors noted above. However, there is no guarantee that a client will meet their investment
goals.
Each client engagement will entail a review of the client’s investment goals, financial situation, time
horizon, risk tolerance and other factors to develop a portfolio strategy for managing a client’s account.
Clients are expected to provide full and accurate disclosure of requested information which is essential for
the analysis of the client’s account. OCM shall rely on the financial and other information provided by
clients or their designees without the duty or obligation to validate the accuracy and completeness of the
provided information. It is the responsibility of the client to inform OCM of any changes in financial
condition, goals or other factors that may affect this analysis.
OCM generally does not employ strategies that involve significant risks other than normal market risks
in both domestic and international markets. The risks associated with a particular strategy are provided
to the client in advance of investing. Different types of investments involve varying degrees of risk,
including the possible loss of principal and that past performance may not be indicative of future results.
Therefore, it should be not be assumed that future performance of any specific investment or investment
strategy will be profitable, including the investment strategies undertaken by OCM.