Investment Management Services
Shepherd Financial Partners generally provides discretionary investment advisory services on a
wrap or non-wrap fee basis (See discussion below). If a client determines to engage the Firm on
a wrap fee basis the client will pay a single fee for bundled services (i.e., investment advisory,
brokerage, custody). The services included in a wrap fee agreement will depend upon each
client’s particular need. If the client determines to engage the Firm on a non-wrap fee basis the
client will select individual services on an unbundled basis, paying for each service separately
(i.e., investment advisory, brokerage, custody).
Shepherd Financial Partners Wrap Program
Shepherd Financial Partners provides investment management services on a wrap fee basis in
accordance with the Firm’s investment management wrap fee program (the “Program”). Under
the Program, the Firm is able to offer participants discretionary investment management
services, for a single specified annual Program fee, inclusive of trade execution, custody,
reporting, account maintenance, investment management fees, and fees charged by
independent managers. However, clients may be responsible for, but not limited to, trustee
fees, mutual fund expenses, ETF expenses, mark-ups, mark-downs, transfer taxes, odd lot
differentials, exchange fees, interest charges, American Depository Receipt agency processing
fees, and any charges, taxes or other fees mandated by any federal, state or other applicable
law or otherwise agreed to with regard to client accounts. Such fees are in addition to any fees
paid by the client to the Firm and are between the client and the account custodian.
The current annual Program fee shall vary (up to 1.50% of the total assets placed under the
Firm’s management/advisement) and shall be based upon various objective and subjective
factors, including, but not limited to, the amount of the assets placed under the Firm’s
management, the level and scope of financial planning and consulting services to be rendered,
and the complexity of the engagement.
Under the Program, if engaged on a discretionary basis, the Firm shall have written authority to
determine the type and amount of securities that are bought or sold. Clients who engage the
Firm on a discretionary basis may, at any time, impose restrictions, in writing, on the Firm’s
discretionary authority (i.e., limit the types/amounts of particular securities purchased for their
account, exclude the ability to purchase securities with an inverse relationship to the market,
limit or proscribe the Firm’s use of margin, etc.).
LPL Financial (“LPL”) shall serve as the custodian for Program accounts.
Under an asset-based pricing arrangement, the amount paid to the custodian for account
commission/transaction fees is based upon a percentage (%} of the market value of the client's
account (generally, the greater the market value, the lower the%}. This differs from transaction-
based pricing, which assesses a separate commission/transaction fee against the client's
account for each account transaction. When engaged on a wrap fee basis, the Firm shall be
responsible for paying the asset-based pricing fee to the custodian. Clients who engage the
Firm on a non-wrap fee basis shall be responsible for paying the asset-based pricing fee to the
custodian.
The LPL Insured Cash Account Program (LPL /CA Program) is an FDIC-insured, interest bearing,
automated cash sweep program. Every
business day, uninvested cash is automatically
transferred to the LPL /CA Program, so that your cash earns interest without incurring
transaction charges. When the cash is needed to cover a debit, it is automatically transferred
back to the account to fund the transaction.
Please note that:
• The fees LPL Financial receives from the banks participating in the LPL /CA Program are
based upon the level of the Firm's client assets in the /CA Program;
• The fee charged by LPL may be higher than the interest rate you receive on their funds
deposited in the /CA Program; and
• Participation in the /CA Program may result in lower returns, due to LPL's fee, when
compared to other bank deposit or money market investments.
Fee Calculation
The fee charged is calculated as described above and is not charged on the basis of a share of
capital gains upon or capital appreciation of the funds or any portion of the funds of an advisory
client.
Fee Payment
Clients will be charged in advance, at the beginning of each calendar quarter based upon the
market value of the assets on the last business day of the previous quarter, prorating and
adjusting for inflows and outflows during the billing period. Clients may elect to have the Firm’s
advisory fees deducted from their custodial account.
Investment Performance: As a condition to participating in the Program, the participant must
accept that past performance may not be indicative of future results, and understand that the
future performance of any specific investment or investment strategy (including the
investments and/or investment strategies purchased and/or undertaken by the Firm) may not:
(1) achieve their intended objective; (2) be profitable; or, (3) equal historical performance
level(s) or any other performance level(s).
Participation in the Program may cost more or less than purchasing such services separately.
Also, the Program fee charged by the Firm for participation in the Program may be higher or
lower than those charged by other sponsors of comparable wrap fee programs.
Depending upon the percentage wrap-fee charged by the Firm, the amount of portfolio activity
in the client's account, and the value of custodial and other services provided, the wrap fee may
or may not exceed the aggregate cost of such services if they were to be provided separately
and/or if the Firm were to negotiate transaction fees and seek best price and execution of
transactions for the client's account.
Conflict of Interest
Because Program transaction fees and/or commissions are being paid by the Firm to the
account custodian/broker-dealer, the Firm could have an economic incentive to maximize its
compensation by seeking to minimize the number of trades in the client's account.
The Program’s wrap fee does not include certain charges and administrative fees, including, but
not limited to, trustee fees, mutual fund expenses, ETF expenses, mark-ups, mark-downs,
transfer taxes, odd lot differentials, exchange fees, interest charges, American Depository
Receipt agency processing fees, and any charges, taxes or other fees mandated by any federal,
state or other applicable law or otherwise agreed to with regard to client accounts. Such fees
and expenses are in addition to the Program’s wrap fee.
The Firm’s related persons who recommend the Program to clients do not receive additional
compensation as a result of a client’s participation in the wrap fee program.