Item 5 - Fees and Compensation
General Fee Information
Fees paid to Wela are exclusive of all custodial and transaction costs paid to the client’s custodian,
brokers or other third-party consultants. Please see Item 12 – Brokerage Practices for additional
information. Fees paid to Wela are also separate and distinct from the fees and expenses charged by
mutual funds, ETFs (exchange traded funds) or other investment pools to their shareholders (generally
including a management fee and fund expenses, as described in each fund’s prospectus or offering
materials). The client should review all fees charged by funds, brokers, Wela and others to fully
understand the total amount of fees paid by the client for investment and financial-related services.
Our asset management fees are generally not negotiable. Fees are not based on a share of capital gains
upon or capital appreciation of the funds or any portion of the funds.
We charge management fees in arrears based on values at the end of each calendar quarter (i.e., March,
June, September, and December), unless otherwise negotiated and agreed to with the client. Unless
otherwise agreed, your management fee is calculated based on market value of all assets in your
managed portfolio, including cash, at the close of the last business day of each calendar quarter and is
rounded to the nearest dollar amount. In the event your account is established on a day other than the
first day of a calendar quarter or closed on a day other than the last day of a calendar quarter, your fees
will be prorated for the quarter. The initial fee is calculated by applying the applicable fee rate to the
quarter-end value of the account, prorated for the number of days since the date of the first deposit into
the account. In the event the account is closed, you will be charged a prorated portion of advisory fee
for the period up to the date of termination.
Wela does not utilize margin as an investment strategy. However, some clients may choose to
maintain margin balances. In such instances, the client is invoiced on the net value of the account.
Therefore, the value on which the fee is calculated is reduced by the amount of margin.
No fee adjustments will be issued for additional deposits to the account or partial withdrawals from the
account occurring during a calendar quarter.
Either Wela or the client may terminate their Investment Advisory Agreement at any time, subject to
any written notice requirements in our written agreement. In the event of termination, any fees due to
Wela from the client will be invoiced or deducted from the client’s account prior to termination. You
will be responsible for any fees and charges incurred from third parties as a result of maintaining the
Account such as transaction fees for any securities transactions executed and Account maintenance or
custodial fees.
Direct Client Relationship Fee Schedule
For individual clients that we serve directly, our fee schedule is:
March 5, 2025
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Wela Strategies, Inc.
Account Size Direct Relationship
Annual Fee
$0 to $250,000 1.00%
$250,000 to $500,000 0.90%
$500,000 to $1,000,000 0.80%
$1,000,000 to $2,000,000 0.70%
Above $2,000,000 Negotiable
We aggregate or “household” your Wela-managed accounts together to determine your quarterly fee.
The fee schedule is applied based on the household billed account balance (assets in the account
which are not billed on are not counted to determine the household asset size).
Wela uses the following calculation to determine the quarterly management fee:
(Quarter end billed market value) times (Annual fee %) times # days in quarter divided by # of
days in year
= quarterly fee (which is then rounded to the nearest dollar amount)
Advisory fees will generally be collected directly from your account, provided you have given us
written authorization to do so. You will be provided with an account statement from the custodian
reflecting the deduction of the advisory fee. If the Account does not contain sufficient funds to pay
advisory fees, Wela has the authority to sell or redeem securities in sufficient amounts to pay advisory
fees. You may reimburse the account for advisory fees paid to Wela, except for ERISA and IRA
accounts.
Model Portfolio Provider Fee Schedule
Where Wela acts as a model portfolio adviser to other Independent Advisers, our fee is based on the
value of those Advisors client assets invested based on Wela model portfolios. The Independent
Adviser of the program will calculate our fee and remit to us based on our agreement. The fee we
charge Independent Advisors will not exceed 30 basis points per year.
401(k) Advisory and Retirement Plan Consulting Services Fee
For retirement Plan clients that use Wela model portfolios, Wela will receive an annual fee of 0.30% of
total Plan assets allocated to Wela models. Fees will be paid on a calendar semi-annual basis in arrears.
Each semi-annual fee will be calculated based on the value of plan assets as determined by the account
custodian and deducted from the plan at the end of the semi-annual period.
The Plan and participants will be subject to costs and expenses assessed and charged by third parties
such as the securities options within the Plan such as exchange traded fund and mutual fund fees and
costs, custodial costs, record keeper, and third-party administrators. Wela does not share in the fees or
expenses charged by other third parties.
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