Fees and Compensation
The annual fee for this service is billed quarterly in advance based on the market value of the assets on the last day of
the previous billing period. Fees will be assessed pro rata in the event the advisory agreement is executed at any time
other than the first day of a billing period. Account billing is done at the beginning of each calendar quarter. Unless
otherwise noted in writing, our firm bills on cash. Fees are generally not negotiable. On an annualized basis, Omega
Capital’s fees for asset management services are based on the following graded fee schedule:
Assets Under Management Annual Fee %
First $2,000,000 1.00%
Next $5,000,000 0.50%
Above $7,000,000 0.35%
Example: a proposed client with a $250,000 portfolio would be billed 1.00% annually which is billed at 0.25% each
calendar quarter. Example: a proposed client has a $2,500,000 portfolio; the first $2,000,000 is billed at 1.00%
annually whereas the remaining $500,000 will be billed at 0.50% annually.
Payment of management fees will either be invoiced or the management fees will be directly debited by the qualified
custodian holding the client’s funds and securities provided the client supplies written authorization permitting the
fees to be paid directly from the account. Omega Capital will not have access to client funds for payment of fees
without written consent by the client. Further, the qualified custodian agrees to deliver an account statement, at least
quarterly, directly to the client, showing all disbursements from the account. The client is encouraged to review all
account statements for accuracy.
100% of the fees that Omega Capital Management earns from its investment advisory service are paid directly by its
clients. Omega Capital does not receive any commissions for the purchase or sale of any investment securities.
Financial Planning
Generally, Omega Capital’s fee for financial planning and consulting is based on an estimate of the hours necessary
to complete the engaged services and/or written financial plan. Omega Capital‘s hourly rate is $250. The time required
to perform the engaged services may vary depending on the complexity and scope of the engagement and the client’s
individual circumstances. Fees for financial planning and consulting will be payable upon delivery of the written plan
or completion of the contracted services.
An estimate of the total time/cost will be determined at the start of the advisory relationship and disclosed to the client
at that time. In limited circumstances, the time/cost could potentially exceed the initial estimate. In such cases, Omega
Capital will notify the client and may request that the client approve the additional fee. Typically, the total estimated
fee will be due upon completion of the services rendered.
Other Fees
The client is responsible for payment of all brokerage fees/transaction charges incurred in implementing financial
planning recommendations and managing the portfolio. Omega Capital does not share in any portion of the brokerage
fees or transaction charges imposed by the custodian holding the client funds or securities. Any fee charged by a
custodian for the purchase or sale of a security is usually a nominal amount and is not covered by a client’s advisory
fee paid to Omega Capital. Charles Schwab & Co., Inc. (“Schwab”) does not charge commission fees for U.S. listed
equities and exchange traded funds.
Termination
Omega Capital or the client may terminate the management agreement within five days of the date of acceptance
without penalty to the client. After the five-day period, either party, upon 30 days’ written notice to the other, may
terminate the management agreement. The management fee will be pro-rated for the quarter in which the cancellation
notice was given and any unearned fees will be refunded to the client upon a written request from the client.