Item 5 – Fees and Compensation
Fees charged by 3D to client accounts may include all of the following: Platform fee; Investment
Management fee; Model Maintenance fee; Direct Investment Management/Administration fee; Sub-
advisor or Model Manager fee; and, Solicitor fee.
These fees are defined as follows:
Platform fee includes costs of custodial account set up; asset transfer; account administration; client and
advisor reporting; trading; performance calculation; customer billing; solicitor billing and payment; client
and advisor online portal administration; and, other back and middle office services.
Investment Management fee is the charge for 3D Asset Management’s investment strategies which
include Global ETF models, 3D DFA Models, Targeted Fixed Income, custom account management and
other strategies managed by 3D’s investment team.
Model Maintenance fee is the fee charged to receive in, reconcile, maintain and administer certain
models provided by Institutional Model managers who provide their models to 3D free of charge but are
not proactively providing administrative investment support or sales and marketing support.
Direct Investment Management/Administration fee is the bundled fee charged by 3D and a 3D IAR to a
direct client that includes all of the above fee but does not include any sub-advisor or model provider fee,
defined below, charged by that sub-advisor or model provider.
Sub-advisor or Model Provider fee is the fee charged on behalf of a sub-advisor or model provider, the
entire amount of which is remitted to the sub-advisor or model provider and represents the cost to 3D
MAP and the client of the investment analysis, management and other intellectual property of the sub-
advisor or model provider.
Solicitor fee is the portion of the investment management fee charged to the client account and paid to
the solicitor. This fee is described and disclosed in the Solicitor Disclosure document attached to the
Investment Advisory Agreement and is to be reviewed and signed by the client.
The applicable fees described above and charged to client accounts are described as annual fees and are
charged directly to client accounts monthly. The fees are calculated on account values at the end of each
month and are charged in arrears on approximately the 5 th business day of the following month. The fees
are calculated based on the number of calendar days in the month and are also asset-flow sensitive. That
is, if cash or other assets arrive or leave the account during a month fees are charged on those assets only
for the days the assets were actually in the account that month.
3D discounts its Platform fee based on the aggregate dollar value in a household’s account or accounts.
The tables below illustrate the fees charged to client accounts under normal circumstances. All fees are
negotiable and those negotiated fees are not illustrated below.
3D MAP Platform fee
Aggregate Household Assets Annualized
with 3D MAP Fee
Up to $1,000,000 0.30%
$1,000,001 to $2,500,000 0.25%
$2,500,001 to $5,000,000 0.20%
$5,000,001 to $10,000,000 0.15%
$10,000,001 and over 0.10%
3D Investment Management fee
Investment Style/ Annualized
Strategy Family Fee
3D Global ETF Portfolios 0.20%
3D DFA Portfolios 0.10%
3D Targeted Fixed Income 0.10%
3D Specialty ETF Portfolios 0.20%
3D Model Maintenance fee
All 3rd Designated Models 0.10%
Direct Investment Management/Administrative fee
Annual fee: 2.00%, may be discounted
Sub-advisor, Model Provider fee
Subadvisor Annualized
Fee
Astoria Portfolio Advisors 0.20%
Lee Capital Management 0.35%
Solicitor fee
Maximum Solicitor Fee = 1.50%
Ranges of combined fees for Solicited Clients (may not be all-inclusive)
3D MAP fee 3D Inv Mgt 3D Model Sub-advisor/ Solicitor Total
fee Maint fee Model mgr fee
Solicitor using 3D MAP and 3D as investment manager
0.10%-0.30% 0.10% - 0.20% NA NA 0 – 1.50% Up to 2.00%
Solicitor using 3D MAP and Institutional Model
0.10%-0.30% NA 0.10% NA 0 – 1.50% Up to 1.90%
Solicitor using 3D Map and sub-advisor or model provider
0.10%-0.30% NA NA 0.20% - 0.35% 0 – 1.50% Up to 2.15%
Minimum account size on 3D MAP is $25,000, which may be waived at 3D’s discretion.
For Direct Clients (no Solicitor relationship):
Direct Client’s will be charged 2.00% annually. 3D reserves the right to discount this fee. Minimum
account size is $25,000, which may be waived at 3D’s discretion.
For Clients through a Separate Account Management Arrangement such as Schwab's Managed
Account Marketplace and TD’s Separate Account Exchange:
All Separate Account Management Clients will be charged an annual fee of 0.30%. 3D may negotiate
this fee at its discretion. Minimum account size is $100,000, which may be waived at 3D’s discretion.
For Clients through Envestnet:
All Envestnet Clients will be charged an annual fee of 0.20% for 3D Global ETF models and 0.10% for
Targeted Fixed Income models. 3D may negotiate this fee at its discretion. Minimum account size on
Envestnet is $25,000. 3D does not have the ability to waive this minimum. Private-labeled platforms
using Envestnet may have lower minimum account sized but this is up to the program sponsor.
For Clients through FolioDynamix:
All FolioDynamix clients invested in PrudentPath models will be charged an annual fee of 0.60%,
one third of which (0.20%) is paid as a sub-advisory fee to Newfound Research, LLC. Clients
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