Center for Wealth Management, LLC (the “Firm” or “Advisor”) is a limited liability corporation formed under
Ohio law and is registered as an investment advisor with the SEC. The Firm was established in June 2014 by
Christopher M. Wright, the Firm’s President and owner, and has been registered as investment advisor since
June 2014.
The Advisor uses its Proactive Wealth Management Process, to organize client assets, insurance, liabilities, and
estate documents to help simplify, consolidate and integrate the aspects of their financial future. The Advisor
helps clients define their long-term investment objectives and build personalized investment portfolios
designed to achieve them.
Advisory services include investment management, financial planning, and consulting services. This Wrap
Brochure provides information about the Advisor and its advisory services under its wrap program. Other
investment advisory services offered by the Advisor are described in detail in the Advisor’s ADV Part 2A
Brochure.
Registration does not imply a certain level of skill or training.
Services
Through its wrap program, the Custom Investment Management II (“CIM II”) program, the Advisor provides
ongoing investment advice and management on assets in the client’s account. The Advisor provides advice on
the purchase and sale of various types of investments, such as mutual funds, exchange-traded funds (“ETFs”),
variable annuity subaccounts, real estate investment trusts (“REITs”), equities, and fixed income securities.
The Advisor provides advice that is tailored to the individual needs of the client based on the client’s
investment objective. LPL acts as custodian for the client’s account and provides brokerage and execution
services as the broker-dealer on account transactions, and performs administrative services, such as quarterly
performance reporting to clients.
Written Acknowledgement of Fiduciary Status
When we provide investment advice to you regarding your retirement plan account or individual retirement
account, we are fiduciaries within the meaning of Title 1 of the Employee Retirement Income Act (ERISA) and
the Internal Revenue Code, as applicable, which are laws governing retirement accounts. The way we make
money creates some conflicts with your interests, so we operate under a special rule that requires us to act in
your best interest and not put out interest ahead of yours. Under this special rule’s provisions, we must:
Meet a professional standard of care when making investment recommendations (give prudent advice);
Never put our financial interests ahead of yours when making recommendations (give loyal advice);
Avoid misleading statements about conflicts of interest, fees, and investments;
Follow policies and procedures designed to ensure that we give advice that is in your best interest;
Charge no more than a level fee that is reasonable for our services; and
Give you basic information about conflicts of interest.
Fees and Compensation
The Client pays the Advisor a single wrap fee (“Advisory Fee”) for advisory, brokerage and trade execution
services.
The Advisory Fee is based on the value of assets managed by the Advisor, calculated as a percentage of assets
under management. This fee is compensation for advisory services and portfolio management fees rendered
by the Advisor as well as charges for execution and transaction services provided by LPL. The Advisory Fee is
negotiable between the client and the Advisor and is set out in the Investment Advisory Agreement.
There is a minimum investment of $100,000, although the Advisor may accept smaller accounts at its
discretion. The Advisor charges no more than 2.5% annually for its portfolio management services. The
amount of the investment advisory fee will be set out in the Investment Advisory Agreement executed by the
client at the time the relationship is established.
The Advisory Fee is negotiated on a client-by-client basis depending on the size, complexity and nature of the
portfolio managed and will be set forth in the Investment Advisory Agreement. The Advisory Fee is
aggregated for family related accounts, generally defined as parents, children, and grandchildren. Because
Advisory Fees are negotiated, not all clients will pay the same fees. A client may pay a higher or lower
Advisory Fee depending on considerations such as the size of the client’s account, the amount of time the
client has maintained an account with the Advisor, and/or the combined market value of related portfolios.
While the Advisor believes that its Advisory Fees are competitive, clients may find lower or higher fees for
comparable services from other sources.
Although the client does not directly pay charges for execution and transactions, clients should be aware that
from the Advisory Fee paid to the Advisor will be less any transactions charges for the executions made on the
clients’ account. The Advisor retains the remaining portion as compensation for its advisory services and
portfolio management. These transaction charges paid by the Advisor to LPL vary based on the type of
transaction. Because the Advisor pays the execution and transaction charges, clients should understand that
the cost of transaction charges may be a factor to the Advisor when making decisions regarding transactions in
the client’s account.
The Advisor instructs LPL to deduct the Advisory Fee quarterly in advance from the client’s brokerage account,
unless other arrangements are set forth in the Advisory Agreement. If the Advisory Agreement is terminated
before the end of the quarterly period, the Advisor will refund any pre-paid quarterly Advisory Fee on a
prorated basis, based on the number of days remaining in the quarter after the termination date. After the
termination date, the Advisor has no responsibility to provide ongoing investment advice to the client. The
custodian LPL Financial reserves the right to charge an account termination fee
to close an account except
when your state of residence prohibits an account closing fee.
Other Types of Fees and Expenses
In addition to the Advisory Fee, which includes LPL’s execution and transaction costs, LPL may charge
additional cost directly to the client. LPL notifies clients of these charges at account opening and makes
available a list of these charges on its website at
www.lpl.com. LPL’s charges may include:
• Margin interest on any credit extended to or maintained by the client for an account approved for
trading on margin and the client has entered into a margin agreement with LPL. LPL will retain a
portion of any interest charged. This interest charge is in addition to the Advisory Fee. The Advisory
Fee is not charged on any margin debit balance, rather only on the net equity of the account.
• Clients also pay LPL other miscellaneous administrative or custodial-related fees and charges that
relate to an CIM II program account.
Fees Charged by Third Parties
There are other fees and charges that are imposed by parties other than the Advisor (third parties) that apply
to investments in CIM II program accounts.
If a client’s assets are invested in mutual funds or other pooled investment products, the client should be
aware that there will be two layers of advisory fees and expenses for those assets. The client will pay an
advisory fee to the fund manager and other expenses as a shareholder of the fund. In the case of mutual funds
that are fund of funds, there could be an additional layer of fees, including performance fees that may vary
depending on the performance of the fund. The client will also pay the Advisor the Advisory Fee with respect
to those assets. Most of the mutual funds available in the program may be purchased directly. Therefore,
clients could generally avoid the second layer of fees by not using the advisory services of LPL and the Advisor
and by making their own decisions regarding the investment.
If client transfers a previously purchased mutual fund into an CIM II program account, and there is an
applicable contingent deferred sales charge on the fund, the client will pay that charge when the mutual fund
is sold. If a mutual fund has a frequent trading policy, the policy can limit a client’s transactions in shares of
the fund (e.g., for rebalancing, liquidations, deposits or tax harvesting).
Although LPL makes available no-load and load-waived mutual funds to CIM II program accounts, LPL receives
asset-based sales charges or service fees (e.g., 12b-1 fees) from certain mutual funds. LPL retains these fees
and they are not shared with the Advisor.
If a client holds a variable annuity as part of an CIM II program account, there are mortality, expense and
administrative charges, fees for additional riders on the contract and charges for excessive transfers within a
calendar year imposed by the variable annuity sponsor. If a client holds a REIT as part of an account, there are
dealer management fees and other organizational, offering and pricing expenses imposed by the REIT. If client
holds a UIT in the IM account, UIT sponsors charge creation and development fees or similar fees.
Further information regarding fees assessed by a product sponsor is available in the appropriate prospectus or
offering document, which is available upon request from the Advisor or from the product sponsor directly.
Important Things to Consider About Fees on an CIM II program Account
The Advisory Fee is an ongoing wrap fee for investment advisory services which include the cost of the
execution of transactions and other administrative and custodial services. The Advisory Fee may cost the client
more than purchasing the services separately, for example, paying an advisory fees. Factors that bear upon
the cost of the CIM II program account in relation to the cost of the same services purchased separately
include the:
• type and size of the account
• historical and or expected size or number of trades for the account, and
• number and range of supplementary advisory and client-related services provided to the client.
The Advisor receives compensation as a result of the client’s participation in the program which may be more
than what the Client would pay to another investment advisory firm.
The Advisor may make amendments to the fee schedule, including negotiated fees, at any time with at least
30 days written notice to the client.
Account Transactions
Advisor will first choose the asset class and fund selection, then the least expensive share class within the
asset class that is in the best interest of Client. Advisor understands that there can be Inherent Conflicts of
Interest related to Advisor’s choice in fund share class, and Advisor must select the share class that is in the
best interest of the client, and also disclose the compensation resulting from certain share class selection
within the ADV-Part 2A, and within the relevant wrap fee brochures.
No Transaction Fee Funds (NTFs) are defined generally as mutual funds and Exchange-Traded Funds (ETFs)
with no associated trading fees. NTF funds are a contractual agreement between the fund manager and the
Custodian. NTF funds are advantageous to Investor/Client because they allow fund purchases without
incurring any sales charges on the trade. NTF funds are also known as no- load mutual funds.
In a wrap program account, Advisor has an incentive to favor funds that do not have a transaction fee over
other funds because Advisor would otherwise pay the transaction fee to the Custodian executing the
transaction in Client account. By Advisor selecting a fund that does not have a transaction fee, Advisor retains
a greater portion of the advisory fee and increases its compensation. In addition, fund companies compensate
the Broker-Dealer to be included in the Broker-Dealer’s NTF program.