Item 5 – Fees and Compensation
All fees are subject to negotiation. The specific manner in which fees are charged by AIM is established
in a client’s written agreement with AIM. AIM will generally bill its fees on a quarterly basis, however
some clients may be billed on a monthly basis. Clients may elect to be billed in advance or arrears each
calendar quarter. Clients may also elect to be billed directly for fees or to authorize AIM to directly debit
fees from client accounts. Management fees shall be prorated for each capital contribution and withdrawal
made during the applicable calendar quarter (with the exception of de minimis contributions and
withdrawals as noted in the fee schedule attached to each Investment Management Agreement (“IMA”)).
Accounts initiated or terminated during a calendar quarter will be charged a prorated fee. Upon
termination of any account, any prepaid, unearned fees will be promptly refunded, and any earned, unpaid
fees will be due and payable (see paragraph 10 of the IMA).
AIM’s fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses which shall be incurred by the client. Clients may incur certain charges imposed by custodians,
brokers, third party investment and other third parties such as fees charged by managers, custodial fees,
deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and
other fees and taxes on brokerage accounts and securities transactions. Mutual funds and exchange traded
funds also charge internal management fees, which are disclosed in a fund’s prospectus. Such charges,
fees and commissions are exclusive of and in addition to AIM’s fee, and AIM shall not receive any
portion of these commissions, fees, and costs unless noted. Please refer to Item 4 above for additional
information on fees and compensation as well as possible conflicts of interest.
AIM offers several different types of Advisory Products across the above three venues, which vary based
on investment style, the amount of AIM’s advisory fee (or wrap fee) and the compensation Axiom Capital
and other broker-dealers receive for acting as broker-dealer. AIM will assist a client in choosing an
Advisory Product suitable for such client based on such factors as a client ’s investment objectives,
financial circumstances, anticipated frequency of transactions, and expected types of investments.
All fees (and commissions for Axiom Capital domiciled accounts) are subject to negotiation. Examples
of AIM’s standard fee schedules and Advisory Products are set forth below. Each client’s account is
governed by the actual fee schedule (or fee and commission schedule) agreed upon, not by any general
or standard fee (or fee and commission) guidelines or schedules. The following are illustrative examples
only and given the years that many clients have had accounts with AIM, the type and diversity of clients
and client relationships, the different investment objectives and investment strategies, there are many
variations to the following:
Advisory Product #1
Annual Management Fee Assets Under Management
2% First $0 to $4,999,999
1.75% Next $5,000,000 to $9,999,999
1.5% Next $10,000,000 to $14,999,999
1.25% Next $15,000,000 to $19,999,999
1% Next $20,000,000+
Brokerage commissions for each transaction will generally be:
Equities, Preferreds & ETF’s = up to 10 cents per share with a minimum charge of $50.00
Fixed Income = up to $6 per bond with a minimum commission/markup/markdown charge of $60.00
Options = up to 6 cents per equivalent share per contract (i.e.1 contract=100 shares), with a minimum
charge of $50.00
Plus, any required regulatory fees on transactions and a service fee on all transactions up to $12.95.
Advisory Product #2
Annual Management Fee Assets Under Management
Up to 1.5% First $0 to $999,999,999
Brokerage commissions for each transaction will generally be:
Equities, Preferreds & ETF’s = up to 3 cents per share with a minimum charge of $30.00
Fixed Income = up to $4 per bond with a minimum commission/markup/markdown charge of $40.00
Options = up to 3 cents per equivalent share per contract (i.e.1 contract=100 shares)
Plus, any required regulatory fees on sell transactions and a service fee on all transactions up to $12.95.
Advisory Product #3
Annual Management Fee Commissions
0% 80% to 100% of Full Commissions (0% to 20% discount)
Brokerage commissions for each transaction will generally be:
Equities, Preferreds & ETF’s = pursuant to a separate Excel file which will be provided to client
Fixed Income = up to $10 per bond with a minimum commission/markup/markdown charge of $95.00
Options = up to 6 cents per equivalent share per contract (i.e.1 contract=100 shares), with a minimum
charge of $95.00.
Plus, any required regulatory fees on transactions and a service fee on all transactions up to $12.95.
Advisory Product #4
Annual management fee of 1.25% of assets under management, and an annual incentive or performance
fee of 20% of net profits (realized and unrealized) over 4%.
Brokerage commissions for each transaction will generally be:
Equities, Preferreds & ETF’s = up to 6 cents per share with a minimum charge of $30.00
Fixed Income = up to $6 per bond with a minimum commission/markup/markdown charge of $40.00
Options = up to 6 cents per equivalent share per contract (i.e.1 contract=100 shares), with a minimum
charge of $30.00 (plus, any regulatory fees on sell transactions and a service fee per transaction up to
$12.95) All performance-based compensation is charged in conformity with Rule 205-3 under the
Investment Advisers Act of 1940. Reduced management fees may be charged on the value of bonds in
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