Item 5 – Fees and Compensation
Advisory Services
CV Advisors charges Clients an Advisory Fee for services provided. The Advisory Fee is established and
defined in the Investment Advisory Agreement between CV Advisors and the Client (the “Advisory
Agreement”). Generally, the Advisory Fee is expressed as a percentage of Assets Under Management
(“AUM”), and typically ranges from 0.35% to 0.70% of total AUM. In some instances, Advisory Fees are
negotiable based upon the types of assets included in a Client’s portfolio, the complexity and size of the
portfolio, the services to be provided, and other factors including the nature of the Client’s objectives as
articulated in the Investment Policy Statement.
CV Advisors’ fee schedule is generally as follows:
Annual Fee Assets Under Management
0.70%: For AUM from $25 million up to $50 million
0.65%: For AUM from $50 million up to $75 million
0.60%: For AUM from $75 million up to $100 million
0.55%: For AUM from $100 million up to $125 million
0.50%: For AUM from $125 million up to $150 million
0.45%: For AUM from $150 million up to $175 million
0.40%: For AUM from $175 million up to $250 million
0.35%: For AUM above $250 million
Employee Related Accounts
The Adviser may, in its sole discretion, negotiate, reduce, or waive fees for certain clients, including but
not limited to family members, employees, or clients with multiple accounts or significant overall
relationships. As a result, similarly situated clients may pay different fees. CV Advisors has adopted
procedures designed to address potential conflicts of interest, including the risk of preferential treatment,
and to ensure that related-party accounts are treated fairly and equitably in relation to other client accounts.
CV Advisors has adopted procedures designed to address potential conflicts of interest, including the risk
of preferential treatment, and to ensure that related-party accounts are treated fairly and equitably in relation
to other client accounts.
Calculation of Fees
The specific manner in which Advisory Fees are charged is established in the Advisory Agreement. Certain
Clients request that Advisory Fees be calculated and billed on a quarterly basis, payable in advance or in
arrears. Other Clients request that Advisory Fees be calculated on an annual basis, payable in advance or
arrears, and billed monthly, quarterly, or as otherwise indicated in their Advisory Agreements, but in no
case does CV Advisors require or solicit prepayment of fees six months or more in advance. Some Clients’
fee schedules and billing procedures differ from the general process described herein, as provided in such
Clients’ Advisory Agreements.
CV Advisors generally uses the Client’s portfolio value, shown as the “Daily Estimate”, as the starting
point for computing a Client’s Advisory Fee. Then, in keeping with the Advisory Agreement (or other
agreement between the Client and their portfolio manager), the Firm will arrive at a final portfolio value
upon which the Client’s Advisory Fee is calculated. The CV App and other Portfolio reporting uses pricing
data obtained and aggregated from Bloomberg, the Client or the Client’s custodians, the Funds, third-party
fund managers, and other independent pricing services. For Advisory Fees payable in arrears, fees are
calculated based on the portfolio value, as shown in the Daily Estimate, as of the last day of the Client’s
billing period. For Advisory Fees payable in advance, fees are calculated based on the portfolio value, as
shown in the Daily Estimate, as of the first day of the Client’s billing period (for more information on how
CV Advisors reports portfolio values to Clients, please refer to Item 13, Review of Accounts).
If an Advisory Agreement is terminated before the end of the billing period, Advisory Fees paid in advance
will be refunded pro rata based on the termination date. CV Advisors does not have the ability to deduct
fees from Client accounts other than the Funds’ accounts.
Fixed Arrangements
CV Advisors also charges fixed fees for other arrangements with certain Clients. Fixed fees are determined
on a case-by-case basis, depending on factors including, but not limited to, the nature and complexity of
the services and the size of the asset base. Examples of fixed-fee services may include, but are not limited
to, bookkeeping services, administrative/assistant services, preparation of expense reports, the
reconciliation of certain other accounts, concierge services including making certain personal arrangements,
providing specific information to meet the needs of individuals, and personal lifestyle consulting & advisory
services.
Separate reporting or concierge service fees may be charged, and such fees are determined on a case-by-
case basis and are included in a Client’s Advisory Agreement.
Affiliated Pooled Investment Vehicles
Clients invested in the Funds do not pay CV Advisors any separate investment advisory fees apart from
their standard Advisory Fees. However, Investors are subject to an initial expense contribution, which is
typically 1% (one percent) of their committed investment (“Expense Contribution”)—but can be higher
depending upon the nature of the underlying fund or investment—for organizational and ongoing
partnership expenses of the Funds such as legal, filing, accounting, auditing, and third-party fund
administrator fees. Investors may also be subject to potential future Fund expenses depending upon the
duration of the Fund. Detailed information regarding Fund fees, costs, and expenses can be found in the
respective Fund’s offering documents which Investors are strongly encouraged to read. Non-Clients
invested in the Funds will typically pay a separate Advisory Fee of 0.25% of their quarterly capital account
...