We offer wrap fee programs as described in this Wrap Fee Program Brochure. Our wrap fee
accounts are managed on an individualized basis according to the client’s investment objectives,
financial goals, risk tolerance, etc.
A wrap fee program allows our clients to pay a specified fee for investment advisory services and
the execution of transactions. The advisory services may include portfolio management and/or
advice concerning selection of other advisers, and the fee is not based directly upon transactions
in your account. Your fee is bundled with our costs for executing transactions in your account(s).
This results in a higher advisory fee to you. We do not charge our clients higher advisory fees
based on their trading activity, but you should be aware that we may have an incentive to limit
our trading activities in your account(s) because we are charged for executed trades. By
participating in a wrap fee program, you may end up paying more or less than you would through
a non-wrap fee program where a lower advisory fee is charged, but trade execution costs are
passed directly through to you by the executing broker.
LPL Financial offers a trading platform with select exchange traded funds (“ETFs”) that do not
charge transaction fees. The no-transaction-fee ETF trading platform is available to clients
participating in LPL Financial’s Strategic Wealth Management (“SWM”) program. Since our firm
pays the transaction fees charged by LPL Financial to clients participating in our wrap fee
program, we are incentivized to recommend no-transaction-fee ETFs over other types of
securities and ETFs in order to reduce our costs. This presents a conflict of interest because the
limited number of ETFs available on the no-transaction fee platform may have higher overall
expenses than other types of securities and ETFs not included in the platform. In addition, other
major custodians have eliminated transaction fees for all ETFs and U.S. equities, so clients may
pay more for investing in the same securities at LPL Financial.
Our Wrap Advisory Services:
Comprehensive Portfolio Management Wrap Fee Program:
Our comprehensive portfolio management service encompasses asset management as well as
providing financial planning/financial consulting to clients. It is designed to assist clients in
meeting their financial goals through the use of financial investments. We conduct at least one,
but sometimes more than one meeting (in person if possible, otherwise via telephone
conference) with clients in order to understand their current financial situation, existing
resources, financial goals, and tolerance for risk. Based on what we learn, we propose an
investment approach to the client.
We may propose an investment portfolio, consisting of exchange traded funds, mutual funds,
individual stocks or bonds, or other securities. Upon the client’s agreement to the proposed
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investment plan, we work with the client to establish or transfer investment accounts so that we
can manage the client’s portfolio. Once the relevant accounts are under our management, we
review such accounts on a regular basis and at least quarterly. We may periodically
rebalance or
adjust client accounts under our management. If the client experiences any significant changes
to his/her financial or personal circumstances, the client must notify us so that we can consider
such information in managing the client’s investments.
Fee Schedule:
Assets Under Management Annual Percentage of Assets Charge*
$0 to $250,000 1.50%
$250,001 to $500,000 1.25%
$500,001 to $1,000,000
Over $1,000,000
1.00%
By Negotiation
Fees to be assessed will be outlined in the advisory agreement to be signed by the client. Our
firm bills on cash unless indicated otherwise in writing. Our firm’s fees are billed on a pro-rata
annualized basis quarterly in advance based on the value of your account on the last day of the
previous quarter. Fees are negotiable and will be deducted from client account(s). In rare cases,
our firm will agree to direct bill clients. As part of this process, you understand and acknowledge
the following:
a) The client’s independent custodian sends statements at least quarterly showing the
market values for each security included in the Assets and all account disbursements,
including the amount of the advisory fees paid to our firm;
b) Clients will provide authorization permitting our firm to be directly paid by these terms.
Our firm will send an invoice directly to the custodian; and
c) If our firm sends a copy of our invoice to the client, legend urging the comparison of
information provided in our statement with those from the qualified custodian will be
included.
The fee to be assessed to each account at LPL Financial, LLC will be detailed in the client’s signed
advisory agreement, LPL Account Application or LPL Tiered Fee Authorization form. Fees are
billed on a pro-rata basis quarterly in advance based on the value of the account(s) on the last
day of the previous quarter. Fees are negotiable and will be deducted from the account(s). Please
note that fees will be adjusted for deposits and withdrawals made during the quarter. If accounts
are opened during the quarter, the pro-rata advisory fees will be deducted during the next
regularly scheduled billing cycle. As part of this process, Clients understand the following:
a) LPL as the client’s custodian sends statements at least quarterly, showing all
disbursements for each account, including the amount of the advisory fees paid to our
firm;
b) Clients provide authorization permitting LPL to deduct these fees;
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c) LPL calculates the advisory fees for all fee schedules and deducts them from the client’s
account.
Other Types of Fees & Expenses:
You may pay custodial fees, charges imposed directly by a mutual fund, index fund, or exchange
traded fund which shall be disclosed in the fund’s prospectus (i.e., fund management fees and
other fund expenses), mark-ups and mark-downs, spreads paid to market makers, wire transfer
fees and other fees and taxes on brokerage accounts and securities transactions. These fees are
not included within the wrap-fee you are charged by our firm.
Wrap Fee Program Recommendations:
Our firm does not recommend or offer the wrap program services of other providers.