Item 5 Fees and Compensation
Portfolio Management Services
Our annual fee for portfolio management services varies between 0.30% to 2.00% depending upon the
market value of your assets under our management, the type and complexity of the asset management
services provided, as well as the level of administration requested either directly or assumed by the
client. Assets in each of your account(s) are included in the fee assessment unless specifically identified
in writing for exclusion in your portfolio management agreement.
Our annual portfolio management fee is billed and payable, quarterly in advance, based on the market
value of the assets being managed on the last business day of the previous quarter, using actual days
in the year. Adjustments will be made for deposits and withdrawals in excess of $50,000 during the
quarter. There can be immaterial differences between the quarter end market value reflected on your
custodial statement and the valuation as of the last business day of the calendar quarter used for billing
purposes, given timing and account activity.
If the portfolio management agreement is executed at any time other than the first day of a calendar
quarter, our fees will apply on a pro rata basis, which means that the advisory fee is payable in proportion
to the number of days in the quarter for which you are a client. Our advisory fee is negotiable, depending
on individual client circumstances.
At our discretion, we can combine the account values of family members living in the same household
to determine the applicable advisory fee. For example, we can combine account values for you and
your minor children, joint accounts with your spouse, and other types of related accounts. Combining
account values can increase the asset total, which may result in your paying a reduced advisory fee.
We will deduct our fee directly from your account through the qualified custodian holding your funds and
securities. We will deduct our advisory fee only when you have given our firm written authorization
permitting the fees to be paid directly from your account. Further, the qualified custodian will deliver an
account statement to you at least quarterly. These account statements will show all disbursements from
your account. You should review all statements for accuracy.
Depending upon the account and program (i.e. specific UMA accounts), DWM will calculate advisory
fees on a quarterly basis using a target allocation billing methodology. Under this approach, fees are
based on a predetermined target allocation (weighting) of the different sleeves (ex. Equity, fixed income,
etc) within a model. Typically, these different sleeves are charged different advisory fees. The market
value of the portfolio model will be calculated quarterly on the last day of the previous quarter and then
allocated across asset classes based on the agreed weighting percentages. Then the appropriate
advisory will be calculated for each sleeve in accordance with its advisory fee schedule. The advisory
fees of all the sleeves are added together to determine the total advisory fee charged to the client. Due
to different valuation procedures, the market value of the account can differ slightly to the market value
on your custodian statement.
We encourage you to review the statement(s) you receive from the qualified custodian. If you find any
inconsistent information in the statement(s), call our main office number located on the cover page of
this brochure.
You can terminate the portfolio management agreement upon 30 days written notice. You will incur a
pro rata charge for services rendered prior to the termination of the portfolio management agreement,
which means you will incur advisory fees only in proportion to the number of days in the quarter for
which you are a client. If you have pre-paid advisory fees that we have not yet earned, you will receive
a prorated refund of those fees.
Selection of Other Advisers - Use of Independent Third-Party Managers
Advisory fees charged by third party money managers ("TPMMs") are separate and apart from our
advisory fees. Assets managed by TPMMs will be included in calculating our advisory fee, which is
based on the fee schedule set forth in the Portfolio Management Services section in this brochure.
Advisory fees that you pay to the TPMM are established and payable in accordance with the brochure
provided by each TPMM to whom you are referred. These fees may or may not be negotiable. You
should review the recommended TPMM's brochure and take into consideration the TPMM's fees along
with our fees to determine the total amount of fees associated with this program.
You may be required to sign an agreement directly with the recommended TPMM(s). You can terminate
your advisory relationship with the TPMM according to the terms of your agreement with the TPMM.
You should review each TPMM's brochure for specific information on how you can terminate your
advisory relationship with the TPMM and how you can receive a refund, if applicable. You should contact
the TPMM directly for questions regarding your advisory agreement with the TPMM. We do not receive
any portion of the fees paid directly to the independent managers.
Independent manager fees are determined by the particular program(s) and manager(s) with which your
assets are invested, and are calculated based upon a percentage of your assets under management,
as applicable. Independent fixed income manager fees generally range from 0.00% - 0.90% annually,
and independent equity manager fees generally range from 0.00% – 1.50% annually.
You will note the total fee reflected on your custodial statement will represent the sum of our investment
management fee and any independent manager fee(s), accordingly. You should review such statements
to determine the total amount of fees associated with your requisite investments, and you should review
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