Item 5: Fees and Compensation
Investment Advisory and Portfolio Management Services
Our annual fee for investment advisory and portfolio management services varies based on factors such
as, but not limited to; the IAR, the market value of your assets under management, the type and
complexity of the asset management services provided, the securities utilized, and the investment
strategy employed, as well as the level of administration requested either directly or assumed by the
Client. Assets in each of your account(s) are included in the fee assessment unless specifically identified
in writing for exclusion. Each of our IARs negotiates fees directly with you.
You will be charged a certain percentage of assets under management but, in no event will our fees
exceed 3.00% on an annualized basis. We charge our fee quarterly in advance based on the value of the
account on the last day of the quarter.
If the portfolio management agreement is executed at any time other than the first day of a calendar
quarter, our fees will apply on a pro rata basis, which means that the advisory fee is payable in proportion
to the number of days in the quarter for which you are a Client.
At our discretion, we can combine the account values of family members living in the same household
to determine the applicable negotiated advisory fee. For example, we can combine account values for
you and your minor children, joint accounts with your spouse, and other types of related accounts.
We will deduct our fee directly from your account through the qualified custodian holding your funds
and securities. We will deduct our advisory fee only when you have given our firm written authorization
permitting the fees to be paid directly from your account. Further, the qualified custodian will deliver an
account statement to you at least quarterly. These account statements will show all disbursements from
your account. You should review all statements for accuracy.
You can terminate the portfolio management agreement upon 30 days written notice. You will incur a
pro rata charge for services rendered prior to the termination of the portfolio management agreement,
which means you will incur advisory fees only in proportion to the number of days in the quarter for
which you are a Client. If you have pre-paid advisory fees that we have not yet earned, you will receive a
prorated refund of those fees.
As disclosed in Item 4 above, programs offered by SPIA are considered to be Wrap Fee Programs
sponsored by RJA in that there are no commissions or transaction charges. The advisory fee paid by the
Client includes custody, trades, management expertise and reporting in a bundled format. Please see
the respective RJA Wrap Fee Program Brochure for more information on the fees you will pay.
Aggregation of Related Fee-Based Accounts
Raymond James aggregates fee-based accounts for billing purposes based primarily on information
provided by IARs and Clients, however, it is the Client's obligation to notify SPIA if there are accounts
that the Client believes should be included as "related" and SPIA reserves the right to determine whether
accounts are "related" in its sole discretion. Clients can request that Raymond James aggregate their
fee-based accounts for billing purposes so that each account will pay a fee under the applicable
program fee schedule that is calculated on the basis of the "Relationship Value" (that is, the total
aggregate Account Values of all related accounts). In general, related accounts are typically combined
based on how the Client instructs their registered representative/IAR to link their accounts for the
delivery of brokerage statements, trade confirmations and other forms of Client communications.
Please note that Raymond James is subject to limitations in its ability to combine a Client's retirement
accounts where a prohibited transaction under the Employee Retirement Income Security Act of 1974
or the Internal Revenue Code could result.
Clients that negotiate a reduced asset-based fee with their IAR should understand that this discounted
rate will be applied until otherwise renegotiated or until the aggregate Relationship Value of their
combined fee-based accounts reaches a level that would qualify for the reduced retroactive rate under
the applicable program fee schedule. That is, the negotiated discount rate would be applied until the
applicable program fee schedule breakpoint would result in a lower fee.
Other Asset Management Services
SPIA also offers asset management services to former clients of Monaco Capital Management, LLC and
Saling Simms Associates Inc. The compensation for these specific services is described in more detail
below.
Monaco Capital Management, LLC
For these asset management services, clients pay fees based on a percentage of their assets under
management by household. The maximum fee schedules are below.
PERCENTAGE OF ASSETS UNDER MANAGEMENT*
Household Assets Under Management Tiered Annual Fee
$0 to $500,000 2.50%
Next $500,000 1.50%
Next $4,000,000 1.00%
Above $5,000,000 0.75%
Fees are billed quarterly in advance, based on the value of each client’s household assets, including cash,
on the last day of the previous quarter. The initial quarter’s fees are prorated based upon the number of
days the assets are managed by us.
The Client Agreement may be terminated by the Client or the Firm at any time upon providing notice
pursuant to the provisions of the Client Agreement. In the event of termination of the Agreement, the
Firm will refund a portion of the fee for the quarter of termination.
Saling Simms Associates Inc..
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