Item 5 – Fees and Compensation
Depending on the services we are providing we are compensated as follows:
Investment Management Services – A calendar quarterly investment management fee is billed in advance based
on your account balance on the last business day of the calendar quarter. The relevant fee billed is defined in the
following Fee Schedule. This fee may be debited directly from your investment account or you may pay this fee
separately. You will need to indicate how you would like to pay this fee in your investment management contract.
Additional fees and expenses you may incur are: brokerage commissions, principal markups and discounts, SEC
fees, mutual fund expense ratios, mutual fund 12B-1 fees, tax withholding on certain foreign securities, postage
fees, wire fees, bank charges, and other administration fees as authorized by you. Please refer to Section 12 for
information on brokerage fees and services.
The quarterly investment management fee is billed in advance of each new calendar quarter. If you terminate your
investment management agreement prior to the end of the calendar quarter, we will generate a “negative” invoice
(reporting a balance due to you) at the end of the calendar quarter. The prorated refund will be calculated from
the date Investment Management Services are terminated through the end of the calendar quarter. If you would
like to dispute the amount of the refund as reported on the “negative” invoice, please submit notice within 3
business days. In the event we receive no dispute, we will assume you are in agreement with our refund calculation
and issue a check to you in the amount of the “negative” invoice.
Culver Investment Company LLC receives no additional compensation from Investment Management Services as
described herein and not otherwise disclosed.
Culver Investment Company LLC calculates your management fee under one of two different methods. The first
method is no longer used for accounts established after June 6, 2017. However, if your account was established
prior to June 6, 2017, you may be grandfathered on this method. Under this first method, your management fee
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is calculated via Step 1 ONLY. If your account was established after June 6, 2017, or your management contract
was re-contracted, your management fee is calculated via Steps 1 + 2.
STEP 1:
Investment Management Services Fee Schedule
Equity Growth Accounts and Balanced Growth Accounts
On the first $500,000: 0.4375% per quarter (1.75% annualized)
On the next $500,000: 0.3750% per quarter (1.50% annualized)
On the next $1,000,000: 0.3125% per quarter (1.25% annualized)
On the next $3,000,000: 0.2500% per quarter (1.00% annualized)
On the next $5,000,000: 0.1875% per quarter (0.75% annualized)
Accounts in excess of $10,000,000 are negotiable
Equity Income Accounts and Balanced Income Accounts
On the first $500,000: 0.3125% per quarter (1.25% annualized)
On the next $500,000: 0.2500% per quarter (1.00% annualized)
On the next $1,000,000: 0.2125% per quarter (0.85% annualized)
On the next $3,000,000: 0.1750% per quarter (0.70% annualized)
On the next $5,000,000: 0.1625% per quarter (0.65% annualized)
Accounts in excess of $10,000,000 are negotiable
Fixed Income Accounts
On the first $1,000,000: 0.2500% per quarter (1.00% annualized)
On the next $1,000,000: 0.1875% per quarter (0.75% annualized)
On the next $3,000,000: 0.1625% per quarter (0.65% annualized)
On the next $5,000,000: 0.1250% per quarter (0.50% annualized)
Accounts in excess of $10,000,000 are negotiable
Managed Mutual Fund Accounts*
On the first $500,000: 0.2500% per quarter (1.00% annualized)
On the next $500,000: 0.1875% per quarter (0.75% annualized)
On the next $1,000,000: 0.1625% per quarter (0.65% annualized)
On the next $3,000,000: 0.1250% per quarter (0.50% annualized)
On the next $5,000,000: 0.1000% per quarter (0.40% annualized)
Accounts in excess of $10,000,000 are negotiable
*management fees disclosed herein do not include expense ratios, trading costs, or other expenses charged by the individual mutual fund companies.
Expense ratios and other expenses are disclosed by prospectus from the respective mutual fund. Trading costs typically are not disclosed.
Managed Exchange Traded Fund (ETF) Accounts*
On the first $500,000: 0.1875% per quarter (0.75% annualized)
On the next $500,000: 0.1625% per quarter (0.65% annualized)
On the next $9,000,000: 0.1250% per quarter (0.50% annualized)
Accounts in excess of $10,000,000 are negotiable
*management fees disclosed herein do not include expense ratios, trading costs, or other expenses charged by the ETF. Expense ratios and other expenses
are disclosed by prospectus from the respective ETF. Trading costs typically are not disclosed.
We aggregate asset amounts in accounts from your same household together to determine the advisory fee for all
your accounts. We may do this, for example, where we also service accounts on behalf of your minor children,
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individual and joint accounts for a spouse, and/or other types of related accounts. This consolidation practice is
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