The Program fees charged by FCIS (the “Fee” or “Fees”) are generally asset-based and are
expressed as an annual percentage of the assets in the account. The fees cover a range of
available services including:
• Management
• Consulting and administrative services provided by FCIS
• Ongoing monitoring of investment managers
• Services provided by your Adviser (including periodic reviews of your account)
• Execution costs and reporting of transactions with or through FCIS
• Custody of securities by Pershing and services provided by the Platform Provider
associated with the program.
The Fees are set forth below in the First Citizens Investor Services Wealth Strategies Fee
Schedule and represent the maximum standard annual rate for each Program. Fees may be
negotiated and may differ among Clients based on several factors, including the specific
Program(s) selected, the type and size of the account, the overall relationship of the Client with
FCIS and its affiliates. The Fees on Accounts invested through individually structured Fixed
Income Portfolios will be established on a negotiated basis. Fees charged for our asset
management services are negotiable based on the adviser providing the services, the type of
client, the complexity of the client's situation, the composition of the client's account (i.e.,
equities versus mutual funds), the potential for additional account deposits, the relationship of
the client with the investment Adviser representative, and the total amount of assets under
management for the client. The actual rates agreed upon between Client and FCIS with respect
to the Program Account will be set forth in Client’s First Citizens Investor Services Wealth
Strategies Agreement.
The indicated Fee will be applied to all Program assets under an incremental approach. The
Fee is assessed quarterly in advance, based on the average daily total market value of Program
assets during the previous calendar quarter (or at the time the Program account is funded). The
Fee charged at account inception is prorated to capture the number of days remaining in the
calendar quarter and charged immediately to the account. The Program services continue in
effect until terminated by either party (i.e., FCIS or you) by providing written notice of
termination to the other party. Upon such notice, FCIS will cease making investment decisions
for the client and implement any reasonable written instructions. Client’s agreement will be
terminated only after any open trades have been settled. FCIS will refund any un-earned portion
of its management fee.
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Program assets will be valued by an independent pricing service, where available, or otherwise
in good faith at the value reflected on Pershing’s books and records. The Program Account
value used for Fee calculation may differ from that shown on your account statement due to
settlement-date accounting, the treatment of accrued income, distributions, or necessary
adjustments. Where necessary, the Program asset values will be determined based on the
trade date, rather than the settlement date, of transactions.
Neither FCIS nor any Third-Party Manager will be compensated on the basis of a share of
capital gains or upon capital appreciation of the Program Account. The portion of the Fees paid
to any relevant Third-Party Manager are set at the discretion of FCIS and the Third-Party
Manager, but ordinarily range between 0 and 50 basis points per year of the relevant Portfolio
Manager and Manager Program assets. FCIS absorbs many of the transaction, billing,
administrative, and marketing expenses that otherwise would be borne by the Third-Party
Manager.
FCIS believes that its annual fee is reasonable in relation to services provided and the fees
charged by other investment advisers offering similar services/programs. However, our annual
investment advisory fee may be higher than that charged by other investment advisers offering
similar services/programs. In addition to our compensation, you may also incur charges
imposed at the mutual fund level (e.g., advisory fees and other fund expenses) and brokerage
fees.
The funds and similar investment vehicles used in the FCIS Wealth Strategies programs
generally impose fees, charges, and other expenses, as described in the respective
prospectuses for these securities, and the Program Account will bear a proportionate share of
these expenses in addition to FCIS’ Fees. Pershing, FCIS, the Third-Party Manager, Platform
Provider/Consultant and/or their affiliates may receive distribution payments or other
compensation from such Funds pursuant to the Investment Company Act of 1940 and Rules
promulgated by the SEC under that Act, or similar compensation from similar investment
vehicles, unless the Program Account is a Retirement Plan or Retirement Account. Cash
balances in Program Accounts held by Pershing are automatically swept to a money market
fund or similar investment or held in a deposit account(s) maintained by an FCIS affiliate that
pass-through any available FDIC coverages. The sponsors and/or advisers for those sweep
vehicles receive a management fee or other compensation for their services, and may be
affiliates of FCIS, Platform Provider and/or the Third-Party Manager. FCIS as Broker Dealer or
Pershing may receive trailing commissions or other compensation based on arrangement with
mutual fund companies. If FCIS receives trailing commission from mutual fund companies these
trailing commissions will be rebated to account. These payments may create a conflict of
interest related to the Funds and other investment products.
First Citizens Investor Services, Inc. WRAP Brochure Page 6 of 22
First Citizens Investor Services Wealth Strategies Fee Schedule
Account Value
Annualized
Fee
First $100,000 1.30%
Next $150,000 1.20%
Next $250,000 1.05%
Next $500,000 0.90%
Over
$1,000,000
0.85%
For the Wealth Strategies Program, Manager fees generally ranging from 0.0 % and .50% are
charged in addition to Program fees.
Note: Fixed Income Portfolio/Program fees will be determined on a negotiated basis.
Payments to Advisers
A portion of the Fees will be paid to your Adviser. The Program is only one of a variety of
investment options that can be offered by the Adviser in his or her various capacities for which
he or she could receive compensation.
Depending upon the size of the account, your ability to negotiate fees or commissions, changes
in account value over time and other factors, the Adviser’s compensation through the Program
may be more than if you participated in other FCIS programs or paid separately for investment
advice, brokerage, and other services. Advisers may therefore have a financial incentive to
recommend First Citizens Investor Services Wealth Strategies over other programs or services.
The investment advisory fees will be deducted from your account and paid directly to our firm by
the qualified custodian(s) of your account. You will authorize the qualified custodian(s) of your
account to deduct fees from your account and pay such fees directly to our firm.
You should review your account statements received from the qualified custodian(s) and verify
that appropriate investment advisory fees are being deducted. The qualified custodian(s) will not
verify the accuracy of the investment advisory fees deducted.
Additional Information Regarding Fees and Expenses
Any SEC and/or exchange fees arising from Account activity are absorbed by FCIS.
Administrative fees normally applicable to retirement accounts and qualified plans sponsored by
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Pershing are waived within First Citizens Investor Services Wealth Strategies Accounts,
excluding 401(k) plan set-up fees, retirement account and qualified plan termination fees, and
other fees (such as electronic fund/wire transfer fees) identified in the Pershing documents
related to retirement accounts and qualified plans. The Fee does not cover transfer taxes, other
charges required by law, regulation, Brokerage or Custodian fees, or rule to be imposed in
addition to the Fee, or other charges you agree to pay in addition to the Fee. Some Portfolio
Managers may assess additional charges and/or fees for certain products or services which
they provide; if the product(s) or service(s) are selected by the Client, the Program Account will
pay those amounts in addition to the Fees.
Program Accounts generally are not permitted to effect margin transactions. If FCIS allows a
margin transaction in the Account, FCIS and/or Pershing will receive additional compensation
that will not be credited back to you in calculating the relevant Fee.
You will pay the public offering price on any securities purchased from an underwriter or dealer
involved in a distribution, which may result in the payment of distribution compensation to the
underwriter or dealer in addition to the relevant First Citizens Investor Services Wealth
Strategies Fee.
We allow advisory accounts to be collateralized by First-Citizens Bank and Trust Company.
Pershing may act as principal on Program Account transactions. No mark-up or mark-down on
such trades will be charged to you. Pershing may receive additional benefit from the dealer
spread (i.e., the difference between the bid and the offer prices) and from gain on the value of
the security. Wrap program fees vary across different programs and sponsors. The Program
may cost you more or less than purchasing the component services separately. Before opening
a Program Account, Client should carefully evaluate the Fees and other expenses, giving due
consideration to the cost of such services when purchased separately outside the Program, the
type and size of the account, the historical and anticipated trading activity in the Account, and
the number and range of supplementary advisory and client-related services that will be
provided to the Account.
FCIS offers those Portfolio Managers that have met the conditions of our due diligence review.
There may be other Portfolio Managers that may deliver substantially similar results for you that
may be less costly. No guarantees can be made that your financial goals or objectives will be
achieved, and no guarantees of performance can be offered.
FCIS does not charge for a Financial Plan created by your Adviser using a financial planning
tool with various modules.
FCIS no longer offers the Paramount Choice Account options. The Paramount Choice programs
were referred to in prior brochures as the “Funds Program,” “Manager Program,” and
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“Consulting Manager Program.” Clients with accounts that were invested in Paramount Choice
and Manager Program models were transitioned to another appropriate offering at First Citizens
Investor Services. Any accounts invested in a Paramount Choice offering that did not transfer
over to a new offering by March 31, 2023, was removed from fee billing and transitioned to a
brokerage account. The Consulting Manager Program continues to be closed to new investors;
however, existing clients may continue to add funds to their existing accounts.
FCIS strives to invest client funds in the cheapest available share class. Nevertheless, FCIS will
still receive 12b-1 fees and/or service fees on certain shares either because the cheapest share
class still provides these fees, or from assets that were transferred into a client’s account. If
FCIS does receive 12b-1 fees or shareholder service fees, the fee will be credited back to the
client’s account. Registered funds often offer one or more share classes that do not charge 12b-
1 or shareholder services fees. You may be able to invest in lower-cost share classes directly.
All 12b-1 fees received for mutual funds held in advisory accounts are rebated back to you.