* Investing strategies, such as asset allocation, diversification, or rebalancing, do not assure or guarantee better performance and cannot eliminate the risk of investment losses. There are no guarantees that a portfolio employing these or any other strategy will outperform a portfolio that does not engage in such strategies.
** Clients pay a wrap fee, which covers brokerage execution costs, without regard to the number of transactions executed during the billing period. EFS has negotiated fees with clearing/custodying firms, and the costs do not affect the wrap fee paid by the client. Generally, transaction costs imposed by the brokerage firms are covered as part of the wrap fee. The wrap fee does not include certain account and securities-related costs, including the fees embedded in the mutual funds, ETFs or annuities in which wrap fee accounts invest. In addition, the fee does not include debit balances, related margin interest, IRA and retirement plan fees, transfer fees, SEC fees, 12b-1 fees for certain money market funds, wire transfer fees, overnight check fees, account closing fees, paper statement delivery fees, nonstandard asset fees, insufficient fund fees, returned check fees, expenses charged by the mutual funds and ETFs (including management fees, transaction charges incurred for fund-level asset allocation model trades, custody of fund assets and other fund expenses), expenses charged by the variable annuities and exchange-traded funds, or other fees or taxes that are required by law.
Occasionally, (less than 5% of the time), EFS will utilize other brokers to execute large transactions when we determine it is in our clients’ best interest. This occurs when the size of the transaction in any one security is so large that it could cause the price of the security to fluctuate, up or down, resulting in an unfavorable execution price for our clients. By utilizing a broker to execute a large transaction, we reduce or eliminate the potential negative price fluctuation, in return for a fee. In these instances, the wrap fee does not include the compensation that is paid to the broker. This compensation is embedded in the price of the security which is paid by the client.