Item 5 – Fees and Compensation
The specific manner in which fees are charged by Adviser is established in each client’s written agreement
with Adviser. Generally and pursuant to contract, fees for the management of Accounts will be based upon
a percentage of the total assets in the account (including margined assets). Adviser typically receives an
annual management fee equal to 2% of the net asset value of the Account. All fees are negotiable.
Performance fees typically range from 10% to 20% of the annual net profits attributable to such accounts.
Calculation and Deduction of Advisory Fees
With respect to accounts that Adviser manages on a discretionary basis, including the specialized
discretionary programs, clients are generally required to authorize Adviser to directly debit management
fees from client accounts on a monthly basis in arrears. Fees for Family Wealth Services and other non-
discretionary programs are billed to clients, although frequently clients pre-authorize their custodians to
automatically deduct the fees from the client’s account and to make payment to Adviser. Management
fees are deducted or billed, as applicable, on a monthly basis in arrears. The Adviser may from time-to-
time bill fees in advance as negotiated with each individual client.
A client may pay more or less fees than similar clients depending on the particular circumstances of the
client, size, additional or differing levels of servicing or as otherwise agreed with specific clients. Clients
that negotiate fees, including a flat fee, may end up paying a higher fee than that set forth above as a result
of fluctuations in the client’s assets under management and account performance.
Additional Fee Information
Clients may authorize the Adviser to directly debit management fees from client accounts on a quarterly
basis. In such instances, management fees are prorated for each capital contribution and withdrawal made
during the applicable calendar quarter. Accounts initiated or terminated during a calendar quarter will be
charged a prorated fee.
Alternatively, in some instances, clients may receive an invoice for fees, in which it may choose to pay
ARCM directly for its billed fees for the relevant period.
Adviser’s fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses which shall be incurred directly by the client. Clients may incur certain charges imposed by
custodians, brokers, and other third parties such as fees charged by fund managers, custodial fees, deferred
sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic funds fees, and other fees
and taxes on brokerage account and securities transactions. Mutual funds and exchange traded funds also
charge internal management fees, which are disclosed in a fund’s prospectus. It is the Adviser’s policy
not to accept “kick-backs” or retrocession fees from any third non-affiliated party providing services to
the Adviser’s clients.
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Termination of the Agreement
Although an Agreement between ARCM and its clients are ongoing agreements and constant adjustments
are required, the length of service to the client is at the client’s discretion. The client or the investment
manager may terminate an Agreement by written notice to the other party with a (30) thirty – day advance
notice or as agreed upon otherwise between the client and the Adviser.
If an agreement is terminated during a period in which the client has already paid ARCM its advisory fees
in advance, then the Adviser will reimburse, on a pro-rated basis, the remaining advisory fees collected
for any service not rendered; these fees will be sent to the client’s address of record, unless otherwise
directed by the client, within (30) days of termination of the agreement.