Item 5: Fees and Compensation
Joint Advisory Program & Joint Advisory Services
Advisory Fees
The Joint Advisory Program is a considered a “wrap fee” investment advisory program because each Client account is
charged a single asset-based Advisory Fee that covers the advisory fees of Ocean Park and the Joint Advisor, together
with various fees, commissions, expenses and charges related to brokerage transactions effected for the Client account,
and fees charged by the Custodian for custodial services provided to the Client account in the ordinary course.
For Clients who hold assets away from Schwab, the fees charged for Joint Advisory Services are not a wrap fee as
described above.
Ocean Park reserves the right, in its sole discretion, to negotiate or modify the Standard Advisory Fee Schedule set
forth herein for any Client and/or Joint Advisor due to a variety of factors, including but not limited to: type and size
of the accounts, the historical or anticipated transaction activity, the level of reporting and administrative operations
required, the investment strategy or style, the number of portfolios or accounts involved, the Client or Joint Advisor’s
total relationship assets under management, terms of the relationship between Ocean Park and Joint Advisor, and/or the
number and types of services provided for the Joint Advisor and/or Client. Because the Advisory Fee is negotiable, the
actual fee paid by any Client or group of Clients may differ by Client, selected Ocean Park Programs, and/or Joint Advisor.
Ocean Park requires all Clients to enter into a Tri-Party Advisory Agreement. The specific fees Clients are obligated to pay
will be outlined in their respective Tri-Party Advisory Agreement.
The advisory fee portion of the Advisory Fee paid by Clients to both Ocean Park and the Joint Advisor are paid in
accordance with a separate agreement (the “Joint Advisory Agreement”) between Joint Advisor and Ocean Park.
Clients elect to authorize Schwab to directly debit fees from Client accounts at the direction of Ocean Park in the Joint
Advisory Program. Joint Advisory Services Clients generally do not direct fee debiting from their selected custodian.
Advisory Fees are payable quarterly in advance, generally in an amount equal to the Advisory Fee Rate(s), as shown
below in the Standard Advisory Fee Schedule, or as otherwise negotiated and displayed in a Client’s Tri-Party Advisory
Agreement. Advisory Fee Rates are assessed against the Client’s Account Value, as of the last market business day of the
immediately preceding calendar quarter. The Client’s Account Value is the total market value of the assets under Joint
Advisory Program/Joint Advisory Services management in the Client Account, as determined by the custodian on the
appropriate day at quarter-end (typically, the last market business day of the immediately preceding calendar quarter).
The Advisory Fee will be prorated for initial contributions by Client to each new account that is effective other than as of
the first day of a calendar quarter, based on the actual number of days remaining in such partial calendar quarter. If the
Tri-Party Advisory Agreement is terminated before the end of a calendar quarter, a pro rata portion of the Advisory Fee
for that quarter will be repaid to the Client (based on the actual number of days remaining in the quarter), subject to any
applicable account expenses.
Ocean Park will aggregate related Client Account Values of the same Client based on direction from Client’s Joint Advisor
for the purpose of achieving the Advisory Fee breakpoint discounts within the Standard Advisory Fee Schedule.
Advisory Fees are calculated and debited during the first month of each calendar quarter from the Client account(s),
each such account as specified by the Client or Joint Advisor, and apply to all Client account holdings including money
market and interest-bearing account allocations.
Standard Advisory Fee Schedule
The Joint Advisory Program and Joint Advisory Services Standard Advisory Fee Schedule is as follows:
• If the Client Account Value is $500,000 or less, the Advisory Fee Rate used to calculate the Advisory Fee payable for
each calendar quarter shall be 0.60% (2.4% annualized).
Ocean Park’s Form ADV Part 2 | Page 9 of 38
• If the Client Account Value is more than $500,000 but less than or equal to $2,000,000, the blended Advisory Fee Rate
used to calculate the Advisory Fee payable for each calendar quarter shall be (x) 0.60% (2.4% annualized) for such
portion of the Client Account Value up to $500,000, and (y) 0.45% (1.8% annualized) for such portion of the Client
Account Value in excess of $500,000.
• If the Client Account Value is more than $2,000,000, the Advisory Fee Rate used to calculate the Advisory Fee payable
for each calendar quarter shall be 0.30% (1.2% annualized).
Accounts which hold a position in one or more of the Affiliated Funds will have their quarterly Advisory Fee reduced by
the Affiliated Funds’ Fee Offset Credit as described below.
The Advisory Fee that a Client pays under the Joint Advisory Program may be higher or lower than the aggregate fees,
commissions, expenses or charges that the Client would otherwise pay if advisory, brokerage and custodial services
were separated. Accounts with low trading volumes, high cash balances or significant fixed income weightings may be
able to receive similar services at a lower cost outside of the Joint Advisory Program. We make no guarantees that the
cost of participating in the Joint Advisory Program will be lower than the cost that would be borne by a Client investing
through a regular investment account with Ocean Park or another advisor.
Clients should explore this subject carefully with their Joint Advisor to determine whether a wrap fee program or a
regular investment account is appropriate for their investment goals.
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