Item 5 – Fees and Compensation
Asset Management Services
Seaport Wealth Management’s annual asset management fees are based on a percentage of assets
under management, which are billed in advance (at the start of the billing period) on a quarterly calendar
basis, and calculated based on the fair market value of the client’s account as of the last business day of
the previous billing period. Fees are prorated (based on the number of days service is provided during the
initial billing period) for an account opened at any time other than the beginning of the billing period. If
asset management services are commenced in the middle of the billing period, then the prorated fee for
that billing period is based on the value of the account when services commence and is due immediately
and will be deducted from account when services commence.
The asset management services continue in effect until terminated by either party by providing written
notice of termination to the other party. Any prepaid, unearned fees will be prorated and refunded by
Seaport Wealth Management to the client based upon the number of days services are actually provided
during the final billing period.
Seaport Wealth Management’s annual asset management fees are negotiable based on the type of
client, the complexity of the client's situation, the potential for additional account deposits, the relationship
of the client with the investment adviser representative, and the total amount of assets under
management for the client, generally according to the following fee schedule:
Assets Under Management Annual Fees
$0 – $10,000,000 1.000%
$10,000,001 and up 0.900%
For asset management services, Seaport Wealth Management generally imposes a minimum account
size of $1,000,000, which may include aggregated household accounts. Seaport Wealth Management, in
its sole discretion, may impose a lesser minimum account size based on certain criteria such as:
anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to be
managed, related accounts, account composition, negotiations with client, etc.
The investment management fees will be deducted from clients’ accounts and paid directly to Seaport
Wealth Management by the client account’s qualified custodian(s). Both Seaport Wealth Management’s
Asset Management Agreement and the custodial/clearing agreement will authorize the account
custodian to debit the account for the amount of Seaport Wealth Management’s asset management
fee and to directly remit that management fee to Seaport Wealth Management in compliance with
regulatory procedures. In the limited event that Seaport Wealth Management bills the client directly,
payment is due upon receipt of Seaport Wealth Management’s invoice.
Seaport Wealth Management, LLC Page 8 Form ADV Part 2A Firm Brochure
Private Fund Management
Fees charged for management services to Affiliated Funds are described in the Affiliated Funds’
offering documents and include an annual management fee charged as a percentage of each
investor’s total capital account balance in the Affiliated Fund. In addition, Seaport Wealth Management
may receive performance-based compensation from the Affiliated Funds.
Consulting Services
Seaport Wealth Management charges a negotiable hourly or fixed fee for its consulting services, which
may vary based upon the type of client, the scope and complexity of the engagement, the complexity of
the client's situation, the potential for additional account deposits, the relationship of the client with the
investment adviser representative, and the total amount of assets under management for the client.
Generally, Seaport Wealth Management charges approximately $250 per hour on an hourly-rate basis, or
between $1,000 and $10,000 on a fixed fee basis.
Seaport Wealth Management will provide an estimate of the approximate hours needed to complete the
consulting services before commencing such services on a client’s behalf. If, during the engagement
Seaport Wealth Management anticipates it will exceed the estimated amount of hours required, it will
contact the client to receive authorization to provide additional services.
Seaport Wealth Management may request that clients provide a mutually agreed upon retainer that will be
available for Seaport Wealth Management to bill against for its consulting services. However, under no
circumstances will Seaport Wealth Management require its clients to pay fees of more than $1,200, six
months or more in advance. Upon presentment of the invoice to the client, Seaport Wealth Management
will deduct the hourly fees due Seaport Wealth Management against the retainer balance, and clients are
immediately responsible to pay Seaport Wealth Management any outstanding balance of hourly fees due.
Any fixed fee will be considered earned by Seaport Wealth Management and immediately due from Client
upon completion of the consulting services.
The consulting services will terminate upon completion of the consultation, or upon either party providing
the other party with written notice of termination. If a client terminates the consulting services before
completion, he/she/it will be responsible for prompt payment for the amount of consulting services
performed. For consulting services performed by Seaport Wealth Management under an hourly
arrangement, clients will pay Seaport Wealth Management for any hourly fees incurred at the agreed
hourly rate. For consulting services performed by Seaport Wealth Management under a fixed fee
arrangement, clients will pay an early termination fee for the hours of service provided by Seaport Wealth
Management multiplied by the hourly rate of $250. In the event that there is a remaining balance of any
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