Item 5 Fees and Compensation
A. Advisory Fees and Billing Procedures
EWS earns its fees and compensation by providing personalized discretionary and non-
discretionary asset management services and financial planning services.
EWS will assess a management fee (the “Management Fee”) to provide discretionary and
non-discretionary portfolio management services and financial planning services. The
management fee is an annual fee based on a percentage of the client’s assets under
management.
Clients are assessed an annual asset management fee of 0.30% to 1.25% (per annum),
based on the chosen plan of service and assets under management, as described below.
The fee is billed quarterly in advance. The final fee is based on the level of complexity
involved in managing the client’s assets and particular restrictions on EWS’s
discretionary investment authority, as well as the plan defined as a level of service. The
four levels – Starter, Plus (formerly Impact), Power, and Super - are described below. The
minimum annual fee for the Starter Plan under $30,000 AUM is $100, $300 for Plus Plan
under $30,000 AUM, $1,250 for Power Plan under $100,000 AUM, and $12,500 for Super
Plan under $1,000,000 AUM.
Starter Plan covers discretionary portfolio management services where the asset
allocation is automated and thematic and/or impact investing portfolios may be added
based on client’s requirements. Semi-annual portfolio rebalance is included. Clients may
contact EWS by phone during our support hours and by email at any time. Clients should
consider that such customer support is educational in nature only, and while algorithms
that manage client accounts are overseen by portfolio managers, clients under the Starter
Plan will generally not interact directly with portfolio managers.
Plus Plan includes all the services of the Starter Plan, including access to other
discretionary investment products, custom quarterly performance reports and
comprehensive semi-annual reviews with an advisor. Additional services such as
financial planning can be added for additional cost.
Power Plan includes all services of the Plus Plan and includes unlimited access to the
advisor, and financial planning services.
Super Plan includes all services of the Power Plan and includes unlimited tax planning
services.
AUM STARTER PLUS POWER SUPER
Under $30,000 $100 $300 $1,250 $12,500
$30,000 – $99,999 0.35% 1.10% $1,250 $12,500
$100,000 – $499,999 0.30% 1.00% 1.25% $12,500
$500,000 – $999,999 0.30% 0.90% 1.15% $12,500
$1,000,000+ 0.30% 0.75% 1.00% 1.00%
The Management Fee will be calculated and charged on a quarterly basis, in advance,
based upon the market value of a client’s assets on the last day of the previous quarter,
depending on the amount of assets under management, related accounts, or any other
reason in EWS’s sole discretion.
In general, and unless specifically stated below, EWS charge fees on a tiered fee structure.
This means that your advisory account can be charged multiple percentages depending
on the amount of assets held within the account. For example, if you have a Power
account with $1,500,000, your annual fee would be calculated as follows:
• First $100,000 would be charged $1,250 flat
• From $100,000 to $499,999 would be charged 1.25%
• From $500,000 to $999,999 would be charged 1.15%
• From $1,000,000 to $1,500,000 would be charged 1.00%
For some accounts opened before November 1, 2020, EWS may charge linear fees. For
example, if you have a Power account with $500,000, your annual fee would be calculated
at flat 1.15%.
The payment of fees will be debited from the client’s account in accordance with the
Investment Management Agreement and are paid by the qualified custodian holding the
client’s funds and securities. The client will provide written authorization permitting the
fees to be paid directly from the account. The fees are not inclusive of broker’s fees such
as transaction fees, platform fees, inactivity fees, which clients agree to pay by signing a
broker agreement when opening an account with them.
Fees for additional planning, investing and consulting services will be assessed as
follows:
• Management of business-owned Multiple Employer Retirement Plans will be
assessed an annual fee of 0.50% to 1.00% of assets under management in the Plan,
subject to the Plan’s limitations and applicable State laws and regulations. Fees
for establishing such a Plan are negotiable.
• Standalone financial planning, investment advisory and consulting services will
be assessed on a per-hour basis, depending on the complexity, at $300/hour rate,
with $600 minimum.
• Ongoing and standalone tax planning and estate planning services provided
through professional collaboration will be assessed based on time and complexity,
and the rates are negotiable.
The payment of fees for any standalone additional services that can not be debited from the
client’s account as described above, will be requested by ACH transfer or bank wire prior to
the commencement of services and upon request should additional fees be assessed.
EWS reserves the right to discount fees based on the needs and circumstances of clients.
All of the above-referenced fees are negotiable.
Additionally, the parties indicated herein may terminate the investment advisory
contract by providing thirty (30) days written notice to EWS. In the event of termination,
fees are prorated from the date of last billing to the date of notice of termination.
...