Item 5 Fees and Compensation
Investment advisory fees are typically charged as a percentage of assets under management and
based on the value of a client’s assets on the last day of the calendar quarter or on the average daily
balance. Client fees are billed and payable quarterly, either in advance or arrears. Fees for investment
management services are negotiable but typically range from 0.10% to 2%, based on the size and
complexity of the services required to manage the assets and will typically be debited directly from
client accounts with the client's written authorization, unless a different method of payment is mutually
agreed to. A client’s specific advisory fee and manner of calculation will be disclosed clearly in the
client’s investment advisory agreement.
For the client’s first billing period, fees will typically be billed in arrears based on the aggregate average
daily balance of the assets under management during the period. The fees for a partial quarter at the
termination of the client’s relationship with Robertson Stephens will be prorated based on the number
of days the assets were managed during the quarter. A significant addition or withdrawal of greater
than one million dollars of assets under management will typically be subject to a fee adjustment
based on the value of the assets and a proration based on the number of days applicable to the
addition or withdrawal. Details are disclosed in each client’s individual investment advisory agreement.
The market value of the assets under management is determined by Robertson Stephens based on (1)
the securities pricing information provided by the custodian, (2) the most recent and available pricing
information received by Robertson Stephens from third-party managers and/or fund(s) the assets are
invested in, if available, and (3) for securities and other assets that are not publicly traded or for which
third-party managers and/or funds do not provide regular pricing information, such relevant information
that Robertson Stephens deems appropriate based on the Robertson Stephens’ valuation policies and
procedures, including, if available, historical cost, comparable asset pricing and other factors.
Robertson Stephens reserves the right, in its sole and absolute discretion, in each instance to adjust
the market value of the assets under management with respect to current or prior billing periods (and
accordingly, its fees) if Robertson Stephens determines, in its reasonable discretion, such adjustment
is necessary or advisable in order to provide a more accurate fair market value of the assets or if
Robertson Stephens receives adjusted pricing information from third-party sources and determines
such adjustment to be material. All assets listed on Robertson Stephens-provided reports but classified
by Robertson Stephens as non-billable will not be included in the calculation of the fee for so long as
they are classified by the Advisor as non-billable.
At the clients’ request and subject to negotiation, clients can be charged an annual fixed fee for
investment management services. Annual fixed fees are negotiated based on the size and complexity
of the relationship and charged based on the frequency stated in the agreement with the client.
Use of Margin
To the extent that a client authorizes the use of margin, and margin is thereafter employed by
Robertson Stephens in the management of the client's investment portfolio, the market value of the
client's account and corresponding fee payable by the client to Robertson Stephens will be increased,
which increases the investment advisory fee charged to the client account. Clients are not required to
use margin in their investment accounts.
Financial Planning Services
Financial planning services may be billed separately or included with investment management and
other services under a single advisory fee. Financial planning fees, when charged separately, will be
disclosed in the client agreement. Such fees are negotiable depending on the complexity of the plan
and nature of the services (e.g., a one-time vs. ongoing engagement) and are typically charged at
either (a) an hourly rate of $250 to $500 per hour with or without an up-front non-refundable retainer,
(b) as quarterly flat fee installments totaling $500 to $100,000 per year, or (c) as a flat fee of $2,500 to
$50,000 per plan and $1,000 to $5,000 per update, or (d) based on the client's marketable net worth.
Fees based on the client's marketable net worth will typically include assets owned or in trust, and all
U.S. or foreign assets including brokerage, 401(k), IRA, investment, and other assets as well as real
estate (net of mortgages) but exclude any assets which cannot or will not be disposed of in a
structured and liquid market. Clients may cancel the financial planning services at any time upon
written notice. Upon cancellation, the client will be invoiced for work performed to date, which is
payable upon receipt.
Retirement Plan Consulting Services
Retirement Plan consulting fees are negotiated with the client based on the nature and complexity of
the services required and they are stated in the client contract.
Tax Compliance Services
Tax compliance services may include the preparation and filing of tax returns, addressing notices,
computing estimated taxes, and representation of taxpayers before taxing authorities. Separately
charged Tax Compliance fees are negotiable but are generally charged based on the specific returns
and form filed and/or time spent.
Tax Management Services
Tax Management Services include tax advice and execution of tax strategies as well as Tax
Compliance. Separately charged Tax Management fees are negotiable but generally range from
$500 to $10,000 per tax year depending upon the level and scope of the service(s) required and are
payable (as disclosed in the agreement with the client) either as a one-time fee or quarterly for ongoing
services.
Other Services
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