Item 5: Fees and Compensation
Method of Compensation and Fee Schedule
ASSET MANAGEMENT
Silverhawk offers discretionary and non-discretionary asset management services to
advisory clients. The fees for these services will be based on a percentage of Assets Under
Management as follows:
Assets under Management Maximum Annual Fee Maximum Monthly Fee
$0 - $2,500,000 2.50% 0.2084%
$2,500,001 - $5,000,000 2.00% 0.1667%
Above $5,000,001 1.70% 0.1416%
Advisory fees are tailored to the individual needs of clients. Some clients will pay different
fees based upon their contract fee schedules, but no higher than what is disclosed in the
ADV part 2A. Silverhawk will not treat higher paying clients more favorably. Fees schedules
may vary for clients based on the length of their relationship with Silverhawk. Fee
schedules may be reduced the longer a client maintains a relationship with Silverhawk.
Our firm's fees are quoted on an annualized basis, charged, and paid monthly in arrears
and are based on the value of your account on the last day of the previous month. Fees
will be automatically deducted from your account by the custodian. Clients with
established relationships prior to July 1, 2021, will continue to be billed quarterly until they
are fully transitioned to monthly billing.
Fees are negotiated and fully disclosed in the clients Investment Advisory Agreement for
the Silverhawk Cash Management Account.
BETTERMENT INVESTMENT PLATFORM
When utilizing the Betterment Investment platform, Silverhawk’s fee will be prorated and
billed monthly in arrears, based on the Client’s average daily balance for the prior month
multiplied by the annual percentage rate of .75% of Assets charge (i.e., .75%/12). Fees will
be automatically deducted from your account. Betterment for Advisors will make quarterly
adjustments for deposits and withdrawals in client accounts. Clients with established
relationships prior to July 1, 2021, will continue to be billed quarterly until they are fully
transitioned to monthly billing.
As part of this process, you understand and acknowledge the following:
• Betterment Securities as the custodian sends statements at least quarterly to
Clients showing all disbursements for their account, including the amount of the
advisory fees paid to our firm;
• The Client has provided authorization permitting fees to be directly paid by these
Silverhawk Asset Management, LLC
terms;
• Betterment Institution calculates the advisory fees and deducts them from the
Client’s account. The fees are based on a client’s average balance of their entire
account. Client will see the total fee of 1% (to include the Betterment for
Advisors platform fee of 0.25% in addition to the annual percentage of assets
charged by Silverhawk of .75%)
Lower fees for comparable services may be available from other sources. Clients may
terminate their account within five (5) business days of signing the Investment Advisory
Agreement with no obligation. For cancellation after five (5) business days, Silverhawk will
be entitled to a pro rata fee for the days service was provided in the final quarter. Client
shall be given thirty (30) days prior written notice of any increase in fees, and client will
acknowledge, in writing, any agreement of increase in said fees.
FEEX (PONTERA)
Accounts managed through the FeeX (Pontera) program will be charged fees as described
under the Asset Management section and pulled directly from the client’s account.
SUB-ADVISOR ARRANGEMENTS
When Silverhawk determines that it would be of benefit to utilize a Sub-Advisor, your
portfolio may be subjected to additional fees. These fees will be billed to your account
via the custodian and may be in addition to the active asset management fee that you are
paying to Silverhawk. The custodian may also have additional trading or custody fees that
your account could be subjected too.
SILVERHAWK/ AFFINITY
When utilizing Affinity’s outsourced chief investment officer service, Affinity will charge
you an additional fee, which is separate from Silverhawk’s fee and will be paid to Affinity
directly. Affinity will deduct its fee from your account. Please refer to Affinity Investment
Advisors, LLC’s Form ADV Part 2A for more information about Affinity’s fees.
FINANCIAL PLANNING AND CONSULTING
Financial Planning Services are available to all clients on a negotiated fee basis. Fees may
be at an hourly rate of $100 to $700 per hour or a fixed fee ranging from $380 -
$50,000, depending on the complexity of the plan and other factors related to the client’s
situation. Prior to the planning process the client is provided an estimated plan fee and a
financial planning fee agreement that details these fees.
SUBSCRIPTION FEES AND “PERSONAL CFO” FEES
Fees for this service range from $50/month to as much as $10,000 per month depending
on complexity and total wealth of the client.
Silverhawk Asset Management, LLC
FIXED FEES FOR 1031 PLANNING AND INVESTMENTS INTO DELAWARE STATUTORY TRUSTS (DST)
When assisting clients with the possibility of utilizing IRC code section #1031, tax deferred
exchanges, Silverhawk may recommend that the client invest their exchange proceeds
into DST investments. For these services, Silverhawk charges a flat fixed fee. The fee is
negotiable with each client but will range from a $10,000 minimum fee to a maximum fee
of $250,000. The fee range is a result of a number of factors, including; the variability of
the types of transactions, the amount of properties being sold, the amount of properties
being purchased, the amount of DSTs reviewed, analyzed and considered by the client,
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