The following are the maximum annual fee schedules for HCR's Portfolio solutions offered through Sowell Management, Services

Custodial Accounts (Stock and ETF Programs)

Account Size

Maximum Annual Fee

$50,000 - $150,000

2.25%

$150,001 - $500,000

2.00%

$500,001 - $1,000,000

1.75%

$1,000,001 and over

1.50%

Management fees are billed monthly in arrears and deducted directly from the client’s account per their written approval. Sowell Management Services (Sowell) calculates management fees based on individual fee rate and market value of individual account as of the last business day of the month. Sowell calculates the first and last month of client fees on a prorated basis.

Clients have online access to account activity and receive statements each quarter detailing all activity which occurred in the account.  


Variable Annuity/Mutual Fund Accounts:

Account Size

Maximum Annual Fee

$25,000 to $149,999

2.25%

$150,000 to $499,999

1.75%

$500,000 to $999,999

1.50%

$1,000,000 and over

1.00%

Fees are based on the value of the account as of the client’s billing date. The market value of the account is calculated by multiplying the number of shares/unit values owned in the client’s account by the net asset value of the product on the last business day of the month preceding the billing month. Clients pay fees in advance on a quarterly basis. Clients receive statements directly from the custodian detailing all transactions as they occur. Clients who opt to have fees deducted directly from accounts instruct Sowell in writing; clients receive an invoice prior to each quarterly fee deduction. Confirmation of payment is also noted on individual client statements from sub-account sponsors. In certain circumstances Sowell may negotiate an adjusted fee rate prior to origination of the account. Under no circumstances will the rate be more than the maximum fee schedule states.

* Management Fee Disclosure: Under no circumstances will the rate be more than the maximum fee schedule states. The maximum fee schedules apply to each account. In certain circumstances, HCR fees may be negotiable.