Advisory Fee Program Services
Our objective is to combine asset management with objective financial advice. Clients come
to Warren Capital because of our commitment to their financial independence and security.
Our mission is to be the single financial services resource for every client.
The Warren Capital Group Asset Allocation Advisory Fee Program (the “Program”) offers
individualized portfolio management, asset allocation, and portfolio monitoring. Proper
diversification is essential when managing investment assets. We allocate to five different
asset classes when constructing portfolios stocks, bonds, real estate, alternatives, and money
market.
These asset classes have varying degrees of correlation. Constructing a diversified investment
portfolio in this manner attempts to increase performance while decreasing volatility.
Although the underlying assets within the models may be the same for all clients, the specific
allocation will be tailored to meet your individual needs.
In managing your investment portfolio, we consider your financial situation, risk tolerance,
investment horizon, liquidity needs, tax considerations, investment objectives, and any other
issues important to your state of affairs. You should notify us promptly if there are any
changes in your financial situation or investment objectives. Restrictions and guidelines
imposed by clients affect the composition and performance of portfolios. For this reason,
the performance of portfolios within the same investment objective may differ.
If a client participates in the Program, they will pay a single fee, which includes investment
management and portfolio monitoring, as well as custodial and administrative costs incurred
within their account(s). This advisory fee program brochure has been created and will be
presented to the client by the Firm prior to investing in the Program. Warren Capital does
not offer asset management services on a non-discretionary basis.
The scope of the discretionary authority that you may grant to us is limited to selecting
specific investments for your account and deciding how to allocate your account assets
among those investments. We may decide if and when to buy, hold, or sell those
investments. Once you have granted discretionary authority to us, it is effective until you
change it or revoke it in writing.
Financial Planning
Warren Capital provides financial planning as part of its services to clients. We will work
with a client to help them clearly define reasonable financial goals and then to find an
efficient and effective way to attain those goals. We will assess the client’s current financial
situation with recommendations for the areas of particular concern to the client.
Advisory Fee Program Fees
Warren Capital offers its services on a fee-only basis. Our fee is assessed and collected
quarterly, in advance, based upon the market value of the assets in your account(s) on the
last day of the previous quarter. Clients who elect to have a financial plan prepared by
Warren Capital will not be charged an additional fee as this service. Broker-dealers and other
financial institutions that hold client accounts are referred to as custodians (hereinafter, the
“Custodian”). Your Custodian determines the values of the assets in your account. Fees for
the initial quarter are based on the value of your cash and securities on the date the
Custodian receives them and are pro-rated based upon the number of calendar days in the
calendar quarter that our agreement becomes effective.
In the event that new funds or securities greater than $50,000 in value are delivered within a
quarter in an Account already under the services and terms of this Agreement during a
quarter, a pro rata fee for the remaining days of the quarter will be calculated based on the
value as indicated by custodian the day the assets are received into the Account. This fee will
be deducted from the Account upon the receipt of the new funds or securities and
calculation of the pro rata fee. In the event of a partial withdrawal of funds or securities
greater than $50,000 in value within
a quarter or termination, Client will be entitled to a pro-
rata refund of any pre-paid quarterly fee based upon the number of days following
withdrawal. Such fees will be refunded to the Account where such fees were debited.
Our fee schedule is described below:
Assets Under Management Annual Advisory Fee
Up to $500,000 2.50%
$500,000-$999,999 2.25%
$1,000,000-$5,000,000 1.75%
Over $5,000,000 1.25%
Clients using the advisory fee program can refer to the Warren Capital Advisory Fee
Disclosure Brochure for detailed information about the Advisory Fee Program. All fees are
negotiable at our sole discretion. Warren Capital may offer discounted rates to its employees
and their families as well as to institutional and ultra, high-net-worth clients with substantial
account balances.
Advisory fees are paid in advance of receiving our services. Should either one of us terminate the
advisory agreement we have entered into before the end of a billing period, any unearned fees
that were deducted from your account will be returned to you. The amount refunded to you is
calculated by dividing the most recent advisory fee you paid by the total number of days in the
quarter. This daily fee is then multiplied by the number of calendar days in the quarter that our
agreement was in effect. This amount, which equals the amount we earned for the partial
quarter, is subtracted from the total fee you paid in advance. The remaining balance is then
refunded to you.
Client acknowledges that Adviser sends the custodian a bill showing the amount of the fee,
the value of client’s assets on which the fee was based, and the specific manner in which the
fee was calculated. The custodian of the account is advised in writing of the limitation of
Adviser’s access to the account. Client custodians will send Client at least a quarterly
statement showing all amounts paid from a Client’s Account(s), including all management
fees paid through the custodian to Adviser. It is Client’s responsibility, not the custodian’s,
to verify the accuracy of the billing amount. Adviser does not hold customer funds or
securities.
You must authorize us to have the Custodian pay us directly by charging your account. This
authorization must be provided in writing. Your Custodian provides you with statements
that show the amount paid directly to us. You should review your Custodian’s statement and
verify the calculation of our fees. Your Custodian does not verify the accuracy of fee
calculations.
In addition to our fee, you may be required to pay other charges such as custodial fees,
brokerage commissions, transaction fees, internal fees and expenses charged by mutual
funds or exchange traded funds (“ETFs”), and other fees and taxes on brokerage accounts
and securities transactions. Mutual fund, ETFs, and money market management fees are not
included in this fee. Ancillary charges such as margin interest or Account fees such as
transfer costs or wire costs are not included in this fee.
None of these fees are paid to or are shared with us.
Mutual fund companies, ETFs, and variable annuity issuers charge internal fees and
expenses for their products. These fees and expenses are in addition to any advisory fees
charged by us. Complete details of these internal fees and expenses are explained in the
prospectuses for each investment. You are strongly encouraged to read these explanations
before investing any money. You may ask us any questions you have about fees and
expenses.
Adviser Compensation
Advisory representatives may recommend our advisory program to you and, as a result of
your participation in this program, will receive a portion of the fee charged by us. These
payments may be made as long as you participate in the program and may be greater than
other forms of compensation had you paid separately for investment advice, brokerage and
other services provided to you as part of a advisory fee program. As a result, our advisory
representatives may have a financial incentive to recommend this program over other
programs or services that may be available to you.