Item 5 – Fees and Compensation
Institutional and SMA Advisory Services Fees
ACR’s fee schedule for both Institutional Account Management and SMA Advisory services is
charged based on a percentage of assets under management. ACR’s Institutional and SMA Advisory
fees are typically billed quarterly in arrears or in advance in accordance with each client’s agreement
and are calculated by multiplying the dollar value of the account at the end of each calendar quarter
by the percentage in the schedule below and dividing by four. The quarterly billable fee is debited
or invoiced on or shortly after the last business day of the calendar quarter; partial periods are pro-
rated.
First $25 Next $25
Million Million Remainder
Equity Investment Management 1.00% 0.875% 0.75%
A minimum of $10,000,000 of assets under management is required for this service, although this
account size may be negotiable under certain circumstances. ACR may group certain related client
accounts for the purposes of achieving the minimum account size and determining the annualized
fee. The minimum fee for this service is $100,000 and, if the minimum fee is invoked and ACR has
agreed to an account size below the minimum, a client’s effective fee will actually be greater than
1.00%.
Although ACR has established the aforementioned fee schedule(s), it retains the discretion to
negotiate alternative fees on a client-by-client basis. Factors considered in connection with fee
negotiations include the complexity of the client’s situation, assets to be placed under management,
anticipated future additional assets, related accounts, portfolio style, account composition, and
reporting requirements, among others. The specific annual fee schedule is identified in the
agreement between ACR and the client.
Discounts, not generally available to ACR’s advisory clients, may be offered to family members
and friends of associated persons of ACR.
SMA Sub-Advisory Services Fees
ACR’s annual fees for SMA Sub-Advisory services are generally 0.75% and are charged as a
percentage of the assets under management.
In accordance with the terms of each sub-advisory agreement, ACR’s SMA Sub-Advisory fees are
typically billed quarterly in arrears or in advance and are calculated using the dollar value of the
account at the end of each calendar quarter. The specific calculation method is identified in the
agreement between ACR and the client. The quarterly billable fee is debited or invoiced on or
shortly after the last business day of the calendar quarter; partial periods are pro-rated.
The minimum account size for this service is generally determined by the entity that ACR is sub-
advising, although it may be negotiable under certain circumstances. ACR may group certain
related client accounts for the purposes of achieving the minimum account size and determining the
annualized fee.
Although ACR has established the aforementioned fee schedule(s), it retains the discretion to
negotiate alternative fees on a client-by-client basis. Factors considered in connection with fee
negotiations include the complexity of the client’s situation, assets to be placed under management,
anticipated future additional assets, related accounts, portfolio style, account composition, and
reporting requirements, among others. The specific annual fee schedule is identified in the
agreement between ACR and the client.
Discounts, not generally available to ACR’s advisory clients, may be offered to employees, family
members, and friends of associated persons of ACR.
Wrap Program Services Fees
ACR’s annual fees for Portfolio Management Services to an SMA Wrap Program are generally
0.75% and are charged as a percentage of the assets under management.
ACR’s Wrap Program fees are typically billed in arrears at the end of each calendar quarter based
upon the value (market value or fair market value in the absence of market value), of the client’s
account at the end of the previous quarter. The specific calculation method is identified in the
agreement between ACR and the client or ACR and the Sponsor, depending on the relationship.
Fees will be debited from the account in accordance with the client’s written authorization.
A minimum of $100,000 of assets under management is generally required to open an SMA Wrap
Program account, although this account size may be negotiable under certain circumstances. ACR
may group certain related client accounts to achieve the minimum account size and determine the
annualized fee.
Although ACR has established the aforementioned fee schedule(s), it retains the discretion to
negotiate alternative fees on a client-by-client, or Sponsor-by-Sponsor basis. Factors considered in
connection with fee negotiations include the complexity of the client’s situation, assets to be placed
under management, anticipated future additional assets, related accounts, portfolio style, account
composition, and reporting requirements, among others. The specific annual fee schedule is
identified in the agreement between ACR and the Sponsor or each client.
Unified Management Accounts (“UMAs”) Fees
ACR’s annual fees for UMA Services are based upon a percentage of the assets to which it consults,
generally in the amount of 0.75%.
In accordance with the investment management agreement between ACR and each UMA Program
Sponsor, ACR’s UMA fees are invoiced in arrears or in advance at the end of each calendar quarter
or month based upon the value (market value or fair market value in the absence of market value)
of the aggregate client accounts at the end of the previous month or quarter.
The minimum account size for this service is determined by the UMA Program Sponsor.
Although ACR has established the aforementioned fee schedule(s), it retains the discretion to
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