This agreement is made between (referred to as “Client” and “you” in this agreement) and Precedent Asset Management, LLC (referred to as “Advisor”, “we”, “us” and “our” in this agreement), a registered investment advisor, and is dated as of .
Scope of Advisory Services
Our responsibilities to you are to assist in implementing the financial planning strategies outlined in our meetings and correspondence with you; meet with you periodically to review your financial situation; suggest adjustments, strategies and techniques which may be advisable as we continue to work together; provide you with investment recommendations for current employer retirement plans and 529 savings plans; and provide any other information and assistance you need in connection with the proper management of your finances.
Our responsibilities to you are to assist in implementing the investment strategies outlined in our meetings and correspondence with you; provide investment advice; prepare an Investment Policy Statement (IPS) to provide a framework for our investment decisions; following the requirements specified in your IPS, exercise discretion in designing, implementing and managing appropriate investment strategies for each account on which we are appointed as the advisor, including determining appropriate investment vehicles and techniques, selecting portfolio managers if the use of such managers is in your best interest, changing managers, adjusting portfolio allocations, and other transactions as needed to facilitate serving you; monitor the performance of your portfolio; review and report investment results to you quarterly; and assist with or perform any administrative functions necessary to properly manage and maintain your portfolio.
(Initial) You acknowledge that we have investment discretion for each account on which we are appointed as the advisor.
We will maintain appropriate books and records for you of all activities and data that result from our services to you. Complete and accurate accounting for all investment accounts, including the flow of funds and securities, is the responsibility of your custodian(s).
We may work closely with your other advisors, including legal counsel, accountants, bankers and others, to assist in achieving your goals and implementing various strategies. Of course, any fees charged by these other advisors will be your responsibility. It is important for you to know that we do not provide legal advice.
All information you provide to us and information that we generate for you will be treated as confidential and will not be disclosed to third parties, except as required by law or as necessary to provide services to you.
To facilitate these services to you, we ask that you keep us informed of your various assets and provide sufficient information for us to understand your overall financial situation. It is important that you help us in the ongoing process of identifying investment and financial strategies that are most suitable for your situation by promptly responding to inquiries and routinely informing us of any changes in your situation.
Our fees for the Financial Planning services described herein consists of an initial planning fee of $995 paid at the beginning of our work together, and an annual fee of $1,500 billed monthly or quarterly. There is no annual fee for ongoing financial planning services if you have $250,000 or more placed with us for investment management.
Our fees for the Investment Management services described herein are paid quarterly in arrears based on the following schedule:
Annual Fee on Account Value
1.00% on the first $1,000,000 0.80% on the next $1,000,000 0.60% on the next $2,000,000 0.15% over $4,000,000
Each quarter, you will be notified by your custodian, or directly by us, of the amount of the fee. Fees are always prorated for any partial quarter we are working together, which usually occurs at the beginning and end of our relationship. No portion of our compensation will be based on capital gains or capital appreciation of your assets.
(Initial) The above fees are deducted from your portfolio whenever possible; otherwise you will receive an invoice for the amount due.
A separate custodian will always hold your investment assets. These relationships are not governed by our agreement with you. You will have separate agreements with each custodian, described in your account paperwork with them.
We will always render our services to you in good faith, recognizing that our services involve a degree of subjective judgment on our part. We will at all times act as a fiduciary advisor, striving to serve you and your interests in the best way possible.
If requested, we will receive and handle your investment proxies for you and vote the proxies in your best interest. If you would prefer that these proxies be sent directly to us, simply let us know and notify your custodian.
Termination and Assignment
Either party may cancel this agreement at any time with 30 days written notice. This agreement cannot be transferred or assigned to anyone else without mutual written consent by each of us. This agreement will not terminate or change as a result of your death or disability. However, your guardian or representative may terminate this agreement if desired.
Disclosures and Notices
(Initial) You acknowledge receipt of our Disclosure Statement (Form ADV Part 2), CFP® Disclosure Form (if applicable), and our Privacy Notice. Please review these documents and let us know if you have any questions. You may cancel this agreement without obligation within 5 business days if you have any concerns about our disclosures.
You consent to receive various documents from us electronically, including but not limited to the above disclosures and notices, by email or by Internet posting with email notification of such posting, at the preferred email address(es) you provide to us in the course of communicating with each other. Depending on your email and Internet service providers, you may incur data charges for accessing this information. This consent for electronic delivery is effective for the duration of this agreement.
This agreement supersedes and replaces all previous investment advisory agreement(s) between the parties. To the extent not inconsistent with applicable law, this agreement shall be governed by and construed in accordance with the laws of the State of Indiana and/or the state where the client resides.
You can reach us at any time using the various contact information we have provided to you, and written correspondence can be directed to the following address:
Precedent Asset Management9000 Keystone Crossing, Suite 145Indianapolis, IN 46240
By signing below, you acknowledge that you have all required legal authority to execute this agreement.
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If you have questions about the contents of this document, you can email the document owner.
Document Name: Advisory Agreement
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