Item 5: Fees and Compensation
Berman is paid fees based on assets advised and not on a transactional basis. Generally, fees are
payable quarterly, in arrears, based on the average value of the assets in the account during the
calendar quarter. Any accounts opened or closed during a calendar quarter will have the advisory
fee pro-rated for the period. Fees payable to the Adviser for services provided pursuant to the
investment advisory agreements will be determined, in the Advisor's discretion, on a client-by-
client basis. Clients have the option to have fees deducted from their accounts, or to be billed
for the fees incurred.
Clients also have the option to negotiate a flat dollar fee or a flat percentage of assets under
management. Select clients that qualify may also negotiate a performance-based fee as
permitted under section 257.205-3 of the Investment Advisors Act of 1940. See Item 6 below for
additional information. The negotiated fee will be documented in the Client’s investment
advisory agreement. Should they choose not to do so, the annual fees for advisory services
provided under the investment advisory agreement generally will be tiered, as follows.
Investment Management
Investment management services include the development and maintenance of investment
policy, manager selection and monitoring, portfolio construction, ongoing due diligence and
monthly reporting. Investments/Accounts that are not recommended by Berman and are not
included for purposes of the advisory fee calculation may be charged a reporting fee of $250 per
account per annum. In addition, any added costs to report on legacy positions that require
performance backdating, or any special project costs, will be passed on directly to the client.
The annual fee attributable to all assets under management is:
• 1.00% on the first $10,000,000 of assets under management
• .75% on assets from $10,000,001 to $25,000,000
• .65% on assets from $25,000,001 to $75,000,000
• .50% on assets between $75,000,001 and $150,000,000
• .35% on assets over $150,000,000
Comprehensive Wealth Management
Comprehensive Wealth Management services include investment management services, as
detailed above, and ongoing comprehensive financial planning (estate planning, income tax
planning, estate tax planning, charitable gift planning, cash flow analysis, asset protection
strategies and business continuity planning).
The annual fee attributable to all assets under management is:
• 1.25% on the first $10,000,000 of assets under management
• .90% on assets from $10,000,001 to $25,000,000
• .75% on assets from $25,000,001 to $75,000,000
• .65% on assets between $75,000,001 and $150,000,000
• .50% on assets over $150,000,000
The fee schedule shown here is representative of the schedule offered to most clients. The rates
charged to any particular client may be higher or lower than those shown above and will be
documented in the Client’s investment advisory agreement.
All clients should understand that all fees paid to the Adviser for investment advisory or
comprehensive wealth management services are separate and distinct from the fees and
expenses charged to clients by the Investment Managers (including mutual fund managers and
securities contract originators) of the Portfolio Funds to which client assets may be allocated. A
complete explanation of these expenses in connection with or charged by such Investment
Managers will be fully disclosed to clients. Where the Portfolio Fund is an investment fund, all
fees and expenses are generally described in the applicable Fund's private offering
memorandum. Berman receives no compensation from the Investment Managers.
Clients may be required to pay other fees related to their accounts, separate from the advisory
fees charged by Berman. These fees and expenses may include:
• Custodial fees
• Brokerage commissions and transaction fees
• SEC fees
• Internal fees charged by mutual funds, exchange traded funds (“ETFs”) and securities
contract originators
• Other fees and taxes on brokerage accounts and securities transactions
• Investment Manager fees and expenses
Mutual funds and securities contracts may also charge fees and expenses to their investors.
Prospective investors in these investment vehicles are advised to review the applicable
prospectus or fund private offering memorandum for additional disclosure regarding fees and
expenses, rights of withdrawal and other matters pertaining to those funds.
Private Funds
Berman bears most of the costs of providing management and support services to the Funds,
including the costs of office space, equipment, supplies, utilities and staff salaries and benefits.
The Funds pay all reasonable expenses incurred in the organization and operation of the Funds,
including all expenses payable by the Funds in connection with investments in the Funds, Fund
fees and expenses payable by or allocable to the Fund, all costs and expenses associated with the
organization of the General Partner and the Funds and of the offering or sale of Interests, all
continuing costs and expenses associated with the offering, sale or transfer of Interests (including
without limitation fees and expenses of attorneys and accountants, filing fees, printing and
mailing costs), all costs and expenses associated with negotiating and entering into contracts and
arrangements in the ordinary course of the Fund's business, all costs and expenses of third party
administrators retained for Fund purposes, all costs and premiums of any fidelity and
performance bonds and liability and errors and omissions insurance coverage obtained in the
General Partner's absolute discretion, all legal, accounting, brokerage and other professional,
expert and consulting fees and expenses arising in connection with the Fund's business, all
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