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”) and Strategic Asset
Management (“SAM”) programs. 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 generally propose an investment portfolio, consisting of exchange traded funds, mutual funds,
individual
stocks or bonds, or other securities. As part of the process, we also work with a client’s
existing investment holdings (if any).
Upon the client’s agreement to the proposed 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.
ADV Part 2A, Appendix 1 – Wrap Fee Brochure Page 5 Northwest Quadrant Wealth Management
Fee Schedule
Assets Under Management Annual Percentage of Assets Charge
Less than $1,000,000 2.00%
$1,000,001 to $3,000,000 1.75%
Over $3,000,000 1.50%
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. Our firm bills on cash unless indicated
otherwise in writing. Fees will generally be automatically deducted from your managed account. In
rare cases, we will agree to directly bill clients. Individualized fee schedules may be used at our
discretion, based on the complexity and scope among other relevant factors and circumstances.
Legacy clients may have a different or customized fee schedule. As part of this process, you
understand and acknowledge the following:
a) LPL Financial, LLC (“LPL”) as your custodian sends statements at least quarterly to you
showing all disbursements for your account, including the amount of the advisory fees
paid to us;
b) You provide authorization permitting LPL to deduct these fees; and
c) LPL calculates the advisory fees for all flat fee schedules and tiered advisory fee
accounts and deducts them from your account*.
**Upon firm approval on a case by case basis, our firm offers custom billing for high net
worth clients based on aggregated household assets. Under this option, advisory fees are
calculated by our firm and then submitted to the account custodian for direct fee deduction.
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.