Item 5. Fees and Compensation
Stokes & Hubbell offers services on a fee basis, which may include fixed fees, as well as fees based upon
assets under management or advisement. Additionally, certain of the Firm’s Supervised Persons, in their
individual capacities, may offer securities brokerage services and/or insurance products under a separate
commission-based arrangement.
Financial Planning and Consulting Fees
Stokes & Hubbell generally charges a fixed fee for providing financial planning and consulting services
under a stand-alone engagement. These fees are negotiable, but generally range from $1,000 to $25,000,
depending upon the scope and complexity of the services and the professional rendering the financial
planning and/or the consulting services. If the client engages the Firm for additional investment advisory
services, Stokes & Hubbell may offset all or a portion of its fees for those services based upon the amount
paid for the financial planning and/or consulting services.
The terms and conditions of the financial planning and/or consulting engagement are set forth in the
Advisory Agreement and Stokes & Hubbell generally requires one-half of the fee (estimated hourly or
fixed) payable upon execution of the Advisory Agreement. The outstanding balance is generally due
upon delivery of the financial plan or completion of the agreed upon services. The Firm does not,
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Disclosure Brochure Stokes & Hubbell Capital Management, LLC
however, take receipt of $1,200 or more in prepaid fees in excess of six months in advance of services
rendered.
Wealth Management Fees
Stokes & Hubbell offers wealth management services for an annual fee based on the amount of assets
under the Firm’s management. This management fee generally varies depending upon the size and
composition of a client’s portfolio and the type of services rendered. The Firm's standard annual tiered
fee schedule is below*:
Market Value of Portfolio % of Assets
$0 to $1,000,000 1.00%
$1,000,001 to $2,500,000 0.75%
$2,500,001 and over Negotiable
*For accounts opened prior to 3/17/17, pre-existing fee schedules may apply.
The annual fee is prorated and charged quarterly, in advance, based upon the market value of the assets
being managed by Stokes & Hubbell on the last day of the previous billing period. Margin debit
balances, if applicable, do not reduce the billable value of the account. Depending on the nature of
services to be provided, the Firm may allow clients within the same household to aggregate account
values for the purpose of reaching fee breakpoints. If assets are deposited into or withdrawn from an
account after the inception of a billing period, the fee payable with respect to such assets is not adjusted to
reflect the interim change in portfolio value. For the initial period of an engagement, the fee is calculated
on a pro rata basis. In the event the advisory agreement is terminated, the fee for the final billing period
is prorated through the effective date of the termination and the outstanding or unearned portion of the fee
is refunded to the client, as appropriate.
Additionally, for asset management services the Firm provides with respect to certain client holdings
(e.g., held-away assets, accommodation accounts, alternative investments, etc.), Stokes & Hubbell may
negotiate a fee rate that differs from the range set forth above which depends on the responsibilities taken
by the Firm to manage or simply monitor the assets.
Retirement Plan Consulting Fees
Stokes & Hubbell may charge a fixed project-based fee to provide clients with retirement plan
consulting services. Each engagement is individually negotiated and tailored to accommodate the
needs of the individual plan sponsor, as memorialized in the Agreement. These fixed fees vary, based
on the scope of the services to be rendered, and may range up to $25,000. In those situations where
Stokes & Hubbell has agreed to manage a plan’s assets, the Firm may alternatively charge an annual
asset-based fee between between 0.15% and 1.50%, depending upon the amount of assets to be
managed. As noted above, Stokes & Hubbell typically assesses advisory fees in advance on a
quarterly basis. However, the annual asset based fee for retirement plan advisory and consulting work
may be charged in a different manner, i.e., in arrears, and/or on a monthly as opposed to quarterly
basis, depending on the retirement plan custodian selected.
Fee Discretion
Stokes & Hubbell may, in its sole discretion, negotiate to charge a lesser fee based upon certain criteria,
such as anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to
be managed, related accounts, account composition, pre-existing/legacy client relationship, account
retention and pro bono activities.
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Disclosure Brochure Stokes & Hubbell Capital Management, LLC
Additional Fees and Expenses
In addition to the advisory fees paid to Stokes & Hubbell, clients may also incur certain charges imposed
by other third parties, such as broker-dealers, custodians, trust companies, banks and other financial
...