This Brochure is intended to provide you with information regarding the wrap fee programs we offer
including advisory services, fees, compensation, and business practices that you should consider
before opening or maintaining a wrap fee program account with our Firm.
Coordinated Capital Securities, Inc. (hereinafter “CCS” or “Firm”) is a Wisconsin corporation located in
Madison, Wisconsin. CCS is a securities broker-dealer registered under the Securities Exchange Act of
1934, a member of the Financial Industry Regulatory Authority (FINRA) and a Registered Investment
Adviser registered with the Securities and Exchange Commission (SEC). Only individuals who are
licensed, qualified, and authorized as an investment adviser representative with CCS are permitted to
offer advisory services on behalf of CCS (hereafter referred to in this disclosure as “Financial
Professionals”). CCS Financial Professionals are also approved to provide brokerage services in their
separate capacity as Registered Representatives of our dually registered broker-dealer.
Recommendations regarding your advisory accounts are made in an advisory capacity.
Recommendations regarding your brokerage accounts are made in a broker-dealer capacity. Your
Financial Professional must tell you what capacity they are acting in before making a recommendation.
Your account opening documentation will also indicate in what capacity your Financial Professional is
acting. For detailed information regarding the distinctions between our brokerage and advisory
services, please see our Customer Relationship Summary (Form CRS) at our website
http://www.ccsmadison.com/#disclosures.
Conflicts of Interest. This Brochure discusses conflicts of interest that may be relevant to CCS’
business as a federally-registered investment adviser under the Investment Advisers Act of 1940, as
amended. Our conflicts of interest are typically the result of compensation arrangements between us,
our Financial Professionals, our clients and third parties. We are disclosing conflicts of interest as
described in this brochure, to help you make informed investment and account-opening decisions.
We offer both Advisory and Brokerage Services. We are registered as both a broker-dealer and an
investment adviser. You may purchase many of our products and services in either transaction-based
brokerage account, a fee-based advisory account, or a combination of each. While there are
similarities between the brokerage and advisory services we provide, there are important differences,
including the pricing structures for these services. When deciding which, if any, of the wrap fee
programs described in this Brochure is appropriate for your needs, you should bear in mind that fee-
based advisory accounts, when compared with commission-based brokerage accounts, may result in
lower costs during periods when trading activity is heavier, such as the year an account is established.
However, during periods when trading activity is lower, fee-based accounts could result in higher
annual costs. The total cost for transactions under a fee-based account versus a commission-based
account can vary significantly and depend upon a number of factors, including:
• Product and service preferences
• Actual costs of services if purchased separately
• Mix of investment products you hold
• Administrative or management fees associated with the products you purchase or hold
• Size and value of your account(s)
• Frequency with which you trade
CCS and your Financial Professional may receive higher compensation for fee-based advisory accounts
over time as compared to commission-based brokerage accounts. A conflict exists if a
recommendation is made to establish or convert a commission-based brokerage account to a fee-
based advisory program account that may not be appropriate based on your anticipated trading
activity, need for ongoing monitoring and advice, and other factors. To mitigate this conflict, we
disclose this conflict and will also explain the advantages and disadvantages of a fee-based advisory
account versus a commission-based brokerage account to you prior to opening the account.
WFA-Sponsored Programs. CCS has entered into an agreement with Wells Fargo Advisors (“WFA”),
pursuant to which WFA provides the brokerage and custodial services, including trading and
execution, with respect to the advisory programs. Programs sponsored by WFA are wrap fee programs
and our involvement is limited to offering and recommending these programs to clients. In November
2016, First Clearing, LLC merged and consolidated its operations into Wells Fargo Advisors, LLC. The
resulting firm is now known as Wells Fargo Clearing Services, LLC (WFCS), Member SIPC, a registered
broker-dealer and non-bank affiliate of Wells Fargo & Company. WFCS operates its brokerage and
advisory business under the trade name Wells Fargo Advisors. First Clearing is also a trade name used
by WFCS when carrying customer accounts and acting as custodian for funds and securities deposited
through introducing firms such as CCS or as a result of transactions it processes for customer
accounts. Throughout this brochure we will refer to First Clearing when describing accounts held
through our clearing firm.
WFA provides advisory and other services with respect to the Personalized Unified Managed Account
Program (“Personalized UMA”) and FundSource Program. Please review the appropriate WFA
Disclosure Documents for a complete description of these programs. You may request a copy of the
WFA Disclosure Documents by contacting your Financial Professional or contacting us directly. WFA
does not provide advisory services with respect to Asset Advisor, Private Advisor Network and Custom
Choice, however they do provide certain non-advisory platform services which enables CCS to offer
these programs. Please review the appropriate WFA Disclosure Documents and Third-Party Manager
Disclosure Documents for a complete description of these programs. You may also request a copy of
these Disclosure Documents by contacting your Financial Professional or contacting us directly.
Wrap Program Descriptions
The description provided in this section is intended to provide you with a summary of each Program.
The fees associated with the advisory program you select will be described your advisory program
agreement.
As a result of the differences in fees and other sources of compensation that exist among the various
advisory programs and services we offer, CCS and your Financial Professional have a financial incentive
to recommend particular wrap fee programs and services over other programs and services available
through CCS.
The following table summarizes the wrap fee programs we offer.
Advisory Program Description Allowable Assets
Managers/Funds/
Strategies Available
Discretion/
Customization
Personal UMA
Unified managed account
program based on WFA
recommended single
strategy or multi strategy.
Custom Blends or Optimal
Blends.
Separately Managed
Accounts (SMA’s),
Mutual Funds, ETP
• Optimal Blends utilizing a combination
of SMAs, mutual funds, ETP
• SMA strategies including both third-
party and internally managed
-WFA Recommended Funds
-WFA Recommended ETPs
WFA or third-party
manager based on
strategies selected.
Private Advisor
Network (PAN)
Separately managed
account, dual contract
program.
Manager discretion
(may include stocks,
bonds, ETF’s and
cash alternatives.)
350 Cleared Published Strategies
Third-Party Manager
(Network Manager)
Asset Adviser
Non-Discretionary
(Client-Directed)
investment advisory
program
Stocks, Bonds, Cash
Alternatives, Mutual
Funds, ETPs, CDs,
Options, UITs
Over 3,700 No-Load, Load Waived, Fee
Based and Institutional
Share Class Mutual Funds
Client-Directed
Custom Choice
Non-Discretionary
(Client-Directed)
mutual fund wrap program
Mutual Funds
Over 3,700 No-Load, Load Waived, Fee
Based and Institutional
Share Class Mutual Funds
Client-Directed
FundSource
Managed mutual fund
program based on WFA
driven Optimal Blends ,
Pathways® Blends or
Customized Blends
Mutual Funds
WFA Optimal Blends and Pathways Blends,
or choose from approximately 650+
WFA recommended mutual funds
Optimal Blends - WFA
Pathways Blends – Russell
Investments
Asset Advisor is a non-discretionary, client-directed investment program in which your Financial
Professional provides investment recommendations based on your investment objectives, financial
circumstances and risk tolerance. You have the option of accepting these recommendations or
selecting different investments for your account. Most types of securities are eligible for purchase in
an Asset Advisor account including, but not limited to, common and preferred stocks, exchange-traded
products, closed end funds, fee-based unit investment trusts, corporate and government bonds,
certificates of deposit, options, structured products, certain mutual funds whose shares can be
purchased at net asset value, and certain wrap class alternative investments, such as hedge funds and
managed futures funds. Collectively, these are referred to as “Program Assets”. Certain strategies and
investment products are not suitable for all investors (i.e., hedge funds are complex investment
vehicles that often use leverage and other speculative investment practices, such as short sales,
options, derivatives, futures and illiquid investments that may increase the risk of investment loss.)
Certain assets, such as commodity futures contracts, annuities, and limited partnership interests are
not eligible as Program Assets and are referred to collectively as “Excluded Assets”. Some Excluded
Assets may be purchased, held or sold in your account. Any transactions in Excluded Assets will incur
commissions and or be subject to standard clearing transaction and other charges and fees. The
advisory program fee is not charged on Excluded Assets held in Asset Adviser program account. CCS
does not sponsor the Asset Adviser program. WFA provides non-advisory platform services associated
with offering the program to CCS clients. You must execute the
Asset Adviser Program Agreement to
participate in this program.
Custom Choice is a non-discretionary investment advisory program designed to help you allocate
your assets among open-end mutual funds in accordance with your individual investment goals,
objectives, and expectations. Based on the investment objectives and risk tolerance you provide, your
Financial Professional will recommend an appropriate mix of various open-end mutual funds and
money market funds. You have the option of accepting any of our recommendations or selecting an
alternative combination of funds. We will implement your investment decisions, but will not have
investment discretion over your account, except for the limited discretion to rebalance your target
asset allocation if you authorize us to do so. You may select a quarterly, semi-annual, or annual
rebalance option. CCS does not sponsor the CustomChoice program. WFA provides non-advisory
platform services associated with offering the program to CCS clients. You must execute the
Custom
Choice Program Agreement to participate in this program. For additional information, please refer to the
program agreement which is available through your Financial Professional or by contacting us.
FundSource/FundSource Foundation. FundSource/FundSource Foundation (hereafter FundSource)
is a discretionary mutual fund wrap program based on WFA research-driven Optimal Blends or
Customized Blends. Portfolios are comprised of mutual funds selected by WFA. All assets are managed
by WFA who is given discretionary authority to implement changes within program accounts based on
your stated investment objective and risk tolerance and other information you provided to your
Financial Professional in your account profile. CCS does not sponsor the FundSource program. WFA
provides advisory and other services associated with offering the program to CCS clients. You must
execute the
FundSource Program Agreement to participate in this program. For a full description of the
FundSource Program please refer to the Investment Advisory Services of Wells Fargo Advisors Wrap
Fee Brochure which is available through your Financial Professional or by contacting us.
Private Advisor Network (PAN) offers a roster of Private Advisor Network Managers (Network
Managers), representing a broad array of investment classes and styles from which you select
Network Managers to handle the
day-to-day management of your account(s). Your CCS Financial
Professional will assist you in allocating your assets among one or more Network Managers. Under the
PAN program, you enter into a separate contract with the Network Manager that provides for the
Network Manager’s complete discretionary trading authority to handle the day-to-day investment
selections in your account. CCS does not sponsor the PAN program. WFA provides non-advisory
platform services associated with offering the program to CCS clients. Neither CCS nor WFA has
discretionary trading authority with respect to PAN program accounts. For more information, please
refer to the Investment Advisory Services of Wells Fargo Advisors Wrap Fee Brochure and the Network
Manager’s Brochure which is available through your Financial Professional or by contacting us.
Personalized UMA Program offers Personalized UMA Single Strategy Accounts or Personalized UMA
Multi Strategy accounts. The program allows you to choose an Optimal Blend or a Custom Blend.
Effective November 23, 2019, existing accounts in the Allocation Advisors Program, Wells Fargo
Compass Program and the Masters Program, along with all Equity Strategies in the Customized
Portfolios Program, were moved into the Personalized UMA Program. Allocation Advisors, Masters and
Wells Fargo Compass no longer exist as stand-alone advisory Programs. In addition, Diversified
Managed Allocations Program (“DMA”) was renamed the Personalized Unified Managed Account
Program (“Personalized UMA”). All accounts currently in these programs or strategies were moved to a
Personalized UMA Single Strategy Account. Fees charged to existing accounts that are moved to
Personalized UMA, along with minimum fee and minimum account size requirements specific to those
accounts, will not change. Going forward, all strategies previously offered in these Programs will be
available as a Personalized UMA Single Strategy Account or as part of a Personalized UMA Multi
Strategy Custom Blend account. CCS does not sponsor the Personalized UMA program. WFA provides
non-advisory platform services associated with offering the program to CCS clients. For more
information, please refer to the Investment Advisory Services of Wells Fargo Advisors Wrap Fee
Brochure which is available through your Financial Professional or by contacting us.
Wrap Fee Program Fees
Asset Advisor
Asset Advisor accounts are charged an all-inclusive fee that covers advisory, execution, custodial, and
reporting services. Billed quarterly in advance, the Standard Program fee schedule below, which is
negotiable, is based on program eligible assets. The maximum annual Standard Program fee charged
shall not exceed 3.0% annually. The annualized fee charged by CCS Financial Professionals in Asset
Advisor accounts typically range from 1.00% to 1.5%.
Total Account Value Standard Annualized Fee
First $250,000 3.00%
Next $750,000 2.50%
Next $1,000,000 2.00%
Asset Advisor accounts that exceed 120 transactions in any one year are subject to additional standard
brokerage account fees including ticket charges. Option transactions incur a separate transaction fee.
Your Financial Professional may choose to pay these fees on your behalf. In this case a conflict of
interest arises in that your Financial Professional may minimize transactions to avoid the additional
fees. We mitigate this conflict by disclosing it to you before you open an advisory program account
with us. CCS has directed First Clearing to mark-up ticket charges which CCS then receives indirectly
from you. This additional compensation presents a conflict of interest because CCS receives a financial
benefit if you pay these charges. CCS does not share this compensation with your Financial
Professional, so your Financial Professional does not have a financial incentive to recommend
transactions for which these charges apply or for CCS to provide these additional services. CCS
believes the account charges assessed for transactions in your advisory program account are
competitive with charges of other broker-dealers available to you. These disclosures are made so you
may make an informed decision whether to open or continue to maintain an advisory program
account with CCS given this conflict.
FundSource
Billed quarterly in advance, the Standard Program fee schedule below, which is negotiable, is based on
program eligible assets. The maximum annual Standard Program fee charged shall not exceed 2.0%
annually. The annualized fee charged by CCS Financial Professionals in FundSource accounts typically
range from 1.00% to 1.5%.
Total Account Value Standard Annualized Fee
2.00%
CustomChoice
Billed quarterly in advance, the Standard Program fee schedule below, which is negotiable, is based on
program eligible assets. The maximum annual Standard Program fee charged shall not exceed 1.75%
annually. The annualized fee charged by CCS Financial Professionals in CustomChoice accounts
typically range from 1.00% to 1.5%.
Total Account Value Standard Annualized Fee
First $250,000 1.75%
Next $750,000 1.50%
Next $1,000,000 1.15%
Personalized UMA
The annualized fee charged by CCS Financial Professionals in these program accounts typically range
from 1.00% to 1.5%. The maximum annual fee charged shall not exceed 2.5% annually and are
negotiable. Third-party manager fees, if applicable, typically are 25 basis points (.25%) for fixed income
strategies and 10-25 basis points (.10-.25%) for internally managed strategies. For custom blends, the
third-party manager fee is calculated based on strategies selected. Please review the Wells Fargo Wrap
Fee Brochure for Separately Managed Account Programs and applicable Third-Party Manager
Disclosure Brochure for additional information.
Private Advisor Network
You have the choice of paying the PAN program fee as a percentage of the account value (advisory fee)
or to incur commission charges on each trade and other standard clearing fees as applicable
(execution charges). Advisory fees are generally better suited for higher trading accounts, where
execution/commission charges do not apply and execution/commission charges may be better suited
for lower trading accounts, where PAN accounts pay a ticket charge for every trade made. Neither the
Advisory Fee Schedule nor the Execution Schedule includes the Network Manager’s investment
advisory fees. You pay for the services of the Network Manager separately.
• Advisory Fee Schedule. Billed quarterly in advance, the maximum annual PAN program fee,
which is negotiable, is 2.0% for first $250,000, 1.50% next $750,000 and 1.25% over $1,000,000.
• Execution Schedule. You pay for PAN services by paying execution/commission charges for
each transaction in the account at our normal commission rate for such agency transactions
and at the normal markup or markdown imposed on client accounts for principal transactions.
You will also be subject to any other fees associated with our standard clearing transaction and
other costs.
Additional Fees, Compensation and Conflicts of Interest
Wrap fee program fees are negotiable and will vary by program, the experience and standard fees
charged by your CCS Financial Professional providing the service, your geographic location and other
factors. A portion of the wrap fee program fees charged will be paid to CCS and to your Financial
Professional in connection with the introduction of accounts, as well as for providing client-related
services within the wrap fee programs.
You should be aware that the fee charged will be calculated based on eligible assets in the account
including cash, money market funds and positions transferred into your program account for which
you may have previously paid a commission or sales charges. Wrap fee programs typically assume a
normal amount of trading activity and, therefore, under certain circumstances, prolonged periods of
inactivity or asset allocations with significant fixed income or cash weightings may result in higher fees
than if commissions were paid separately for each transaction.
First Clearing charges CCS a program fee that is deducted from the wrap fee you negotiate with
your Financial Professional. CCS retains a portion of the fee paid by you after payment to First
Clearing. The retained portion is additional compensation to CCS that is not shared with your Financial
Professional. This additional compensation presents a conflict of interest because CCS receives this
financial benefit when you open wrap-fee accounts. CCS addresses this conflict by disclosing the
conflict to you before or at the time you enter into a wrap-fee program agreement with us.
Investment Costs. Investments that are interests in investment funds, such as mutual funds, non-
traded investments, and UITs, or products, such as college savings plans and variable insurance
products, bear ongoing fees and expenses that are embedded into the cost of the investment holding.
You pay these ongoing fees and expenses indirectly because they are factored into the cost of the
investment. Wrap fee program fees charged by CCS are separate and distinct from the fees and
expenses charged by investment company securities that are recommended to you. More information
about ongoing fees and expenses associated with investment company securities is available in the
fund or product prospectus.
Mutual Fund Share Class Selection. Many mutual funds also offer share classes that do not charge
12b-1 fees (on-going trailing commissions) such as institutional shares or Class I shares (collectively
“advisory shares”). An investor who holds advisory shares of a mutual fund will usually pay lower total
annual fund operating expenses over time – and thus will generally earn higher returns – than one
who holds a share class of the same fund that charges 12b-1 fees. If a mutual fund offers an advisory
share, and you are eligible to own it, it is often, though not always, better for you to purchase or hold
the advisory share. CCS does not make all share classes available to wrap fee program accounts we
offer. Designated share classes availability will depend on share classes offered by First Clearing or
other custodial platforms, or whether the fund imposes a minimum investment amount to acquire or
hold the share class. Therefore, CCS can purchase, hold, and recommend share classes in your wrap
fee program account that are not the lowest-cost share class and you should not assume that you are
invested in the lowest-cost share class. Higher-cost share classes can result in lower returns, which
could impact your account performance over time. In addition to reading this brochure carefully, you
are urged to ask your Financial Professional whether lower-cost share classes are available and/or
appropriate for your wrap fee program account in consideration of your expected investment holding
periods, amounts invested, and anticipated trading frequency. Further information regarding fees and
charges assessed by a mutual fund is available in the appropriate mutual fund prospectus.
How you are charged Wrap Program Fees
Unless agreed upon otherwise, you authorize us to deduct a quarterly fee from the account, charged
in advance of the quarter, calculated at the rate indicate in the wrap fee program agreement fee
schedule signed by you. The initial program fee is calculated as of the date that the account is
accepted by us into the wrap fee program and covers the remainder of the calendar quarter.
Subsequent wrap fee program fees will be determined for calendar quarter periods and shall be
calculated based on the account value on the last business day of the prior calendar quarter.
Whenever there are changes to the fee schedule, the schedule charges previously in effect shall
continue until the next billing cycle. The specific fees and way fees are calculated and charged is
described in your wrap-fee program agreement. You should carefully review your agreement and this
wrap brochure to understand the fees and other sources of compensation that exist among our wrap
fee programs and services prior to entering into a wrap-fee program account with our firm.
Your Financial Professional may suggest that you use other products and services that CCS offers, but
that are not available through the program you select (“Excluded Assets”). Excluded Assets are not
charged a program fee and are not considered a part of the program or program services. We
generally recommend that you hold these Excluded Assets in a separate brokerage account. If an
excluded asset purchased for or transferred into your account later becomes eligible for the program,
wrap program fees as well as applicable standard clearing transaction and other fees will apply.