Item 5 – Fees and Compensation
Amount of Our Fees
SWS Wealth Management
SWS Wealth Management is offered exclusively as a wrap fee program. Please refer to the
SWS Wealth Management Wrap Fee Brochure for a description of the wrap fee program fees.
SWS Investment Management
The SWS Investment Management fee is charged on select SMA stock portfolios. The fee is 50
bps (0.50%). This fee is not part of the SWS Wealth Management Wrap Fee and will be
charged in addition to the wrap fee if a client is investing in one of the applicable stock
portfolios. SWS reserves the right to lower this fee at the firm’s discretion. Please refer to the
SWS Wrap Fee Brochure for further information.
SWS Financial Planning
Generally, Financial Planning services are billed at a rate of $5,000 annually. The fee is reduced
by 50% if and when the client reaches $2,500,000 in assets managed by the firm. The fee is waived
altogether when the client reaches $5,000,000 in managed assets. Fees are billed quarterly in
advance. The quarterly installment shall be billed to the client’s investment account(s) with
SWS Partners. In the event the client does not have investment accounts managed by SWS
Partners, SWS Partners shall invoice the Client the fee on a quarterly basis, and the fee shall
be due and payable thirty (30) days thereafter.
If the engagement is terminated, a pro-rata refund is paid to the client provided based upon
the remaining days in the quarter for which an advance fee was paid to SWS.
SWS Multi-family Office
Multi-family office services are billed at a minimum rate of $50,000 per year, to be paid in
four equal installments of $12,500, payable quarterly on the first day of each quarter. The
quarterly installment shall be billed to the client’s investment account(s) with SWS Partners.
In the event the client does not have investment accounts managed by SWS Partners, SWS
Partners shall invoice the Client the fee on a quarterly basis, and the fee shall be due and
payable thirty (30) days thereafter.
SWS Institutional Asset Management
Clients engaging SWS for Institutional Asset Management services pay an asset-based
advisory fee for discretionary investment management services. The fee is generally
calculated as a percentage of the Managed Assets and is determined based on the following
schedule:
Total Managed Assets Annual Fee
From $1M up to/including $10M 0.85%
Above $10M up to/including $25M 0.75%
Above $25M up to/including $50M 0.65%
Above $50M 0.55%
SWS Marketplace Managed Accounts
The fee schedule for SWS Marketplace Managed Accounts is as follows:
Assets Under Management Annual Fee
Up to/including $500,000 1.10%
Above $500,000 up to/including $2,000,000 1.00%
Above $2,000,000 0.90%
SWS reserves the right to lower the fees for Marketplace Managed Accounts at the firm’s
discretion.
SWS Outsourced Chief Investment Officer (“OCIO”)
Clients engaging SWS for Outsourced Chief Investment Officer services pay a fee based upon
assets under advisory and/or management, depending on the unique needs of each
engagement.
SWS Third Party Model Program
SWS receives compensation from Participating Advisers for the use of its proprietary model
portfolios under the Third Party Model Program. These fees are paid by the Participating
Adviser and not directly by the underlying clients whose accounts utilize the model.
The Third Party Model Program fee is 45 bps (0.45%), generally based on the total assets
under management utilizing SWS models. SWS reserves the right to lower this fee at the
firm’s discretion.
SWS Consulting
A fixed retainer will be based on the type of consulting needed, the size of the portfolio,
complexity, and length of time of engagement. The fee varies based on the scope of the work
provided and will be disclosed and approved by the client in a separate written agreement
prior to the commencement of services.
Fee Billing
SWS Wealth Management Fees
Our fees are paid quarterly in advance and are based on the market value of the assets in your
account on the last business day of the calendar quarter. We will deduct our fees directly
from your account at Schwab. If you have insufficient cash in your account to pay our fee, we
may sell certain of your account assets to pay the fee. Fees are pro-rated for partial periods.
If you terminate your agreement with us during a quarter, we will refund pro rata portion of
the fee you paid for that quarter, based on the number of days between the end of the notice
period and the end of the quarter.
SWS Institutional Asset Management
Institutional fees will be negotiated and agreed to by the client and SWS prior to the
commencement of the engagement. Fees will be paid monthly in arrears and will be based
on the market value of the assets in the clients’ account(s) unless agreed in writing otherwise.
SWS Investment Management
For internal SWS SMA accounts, fees will be paid quarterly in advance based on the market
value of the assets in your account on the last business day of the calendar quarter. We will
deduct our fees directly from your account. If you have insufficient cash in your account to
pay our fee, we may sell certain of your account assets to pay the fee. Fees are pro-rated for
partial periods. If you terminate your agreement with us during a quarter, we will refund pro
rata portion of the fee you paid for that quarter, based on the number of days between the
end of the notice period and the end of the quarter.
SWS Marketplace Managed Accounts
Fees will be paid monthly in arrears and will be based on the daily average market value of
...