ITEM 5: FEES AND COMPENSATION
Investment Management Services
Fees for investment management services are calculated as a percentage of assets under management.
These fees are billed quarterly in arrears, based on the assets under management as of the last day of the
calendar quarter. Fees are based on the following schedules:
Long Equities
Account Value Annual Fee
Up to $100,000 1.75%
$100,001 to $250,000 1.50%
$250,001 to $500,000 1.25%
$500,001 to $1,000,000 1.00%
$1,000,001+ 0.75%
Fixed Income
Account Value Annual Fee
Up to $1,000,000 0.75%
$1,000,001 to $2,500,000 0.50%
$2,500,001 to $5,000,000 0.40%
$5,000,001+ 0.35%
Hedging Strategies
Account Value Annual Fee
Up to $100,000 2.50%
$100,001 to $250,000 2.00%
$250,001 to $500,000 1.75%
$500,001 to $1,000,000 1.50%
$1,000,001+ 1.25%
The fees shown above represent our basic fee schedule; however, fees may be negotiable in certain
limited circumstances and arrangements with any particular client may vary. We consider asset size and
investment strategy when negotiating fees.
Financial planning services are included in the above fees.
You may end our advisory relationship by providing 30 days written notice. We will prorate the advisory
fees earned through the termination date and send you an invoice for the advisory fees due.
For investment management accounts, we require that you provide authorization for us to deduct our fees
directly from your investment account in accordance with following process :
You must provide authorization for us to pull fees by initialing the appropriate section of our
investment management agreement.
You will receive a statement from your custodian which shows all transactions in your account,
including the deduction of our fee.
You are responsible for reviewing the accuracy of the fees being billed, as the custodian will not
do so.
Financial Planning
Financial planning services for clients who do not receive investment management services are provided
for an hourly fee of $250. You will receive an invoice upon completion of the financial plan that is
payable upon receipt. You may pay for financial planning services by check or cash.
You may cancel our financial planning agreement at any time by providing written notice. Upon
cancellation, we will present you with an invoice for time spent. This invoice is payable upon receipt.
We have a conflict of interest when providing financial planning advice. If you decide to implement the
advice given in the financial plan through RB Capital, we are paid for investment management services as
disclosed above. You are not required to employ us to implement the financial plan, or to implement the
plan, or any portion of it, at all.
Other Costs Involved
In addition to our advisory fees shown above, expenses associated with making investments on behalf of
the clients will also be incurred. These fees include:
mutual fund loads (if applicable). These charges are paid to brokers as a form of commission.
management fees for ETFs and mutual funds. These are fees charged by the managers of the ETF
or mutual fund and are a portion of the expenses of the ETF or mutual fund.
brokerage costs and transaction fees for any securities or fixed income trades. These are
generally charged by your custodian and/or executing broker.
Additional information about brokerage costs and services is provided in “Item 12: Brokerage Practices.”
Several individuals who provide investment advice to our clients are also affiliated with various insurance
agencies. If you elect to implement insurance recommendations through one of these individuals, that
person will receive the normal and customary commissions. In these situations, a conflict of interest
exists between the interests of the client and RB Capital. In these instances, these individuals have an
incentive to recommend products based on the compensation they receive, rather than on client’s needs.
Clients of RB Capital are under no obligation to implement insurance recommendations through one of
these individuals.
Clients may purchase insurance products and services from individuals other than those affiliated with RB
Capital.