Item 5 Fees and Compensation
A. INVESTMENT ADVISORY SERVICES
If a client determines to engage the Registrant to provide discretionary investment advisory
services on a fee-only basis, the Registrant’s annual investment advisory fee shall be based
upon a percentage (%) of the market value and type of assets placed under the Registrant’s
management. Such investment advisory fee will be at an initial annual rate of 1.00% for all
securities, except for fixed income securities, which shall be at an initial annual rate of 0.50%,
as detailed in the Fee Schedule below, provided, however, unless otherwise agreed to by the
Registrant in writing, the minimum annual fee shall be no less than two thousand five hundred
dollars ($2,500.00)-see Item 7 below. The Registrant, in its sole discretion, may charge a lesser
investment management fee, reduce or waive its minimum fee or aggregate account minimum,
charge a fixed fee, or charge no fee, based upon certain criteria (i.e. anticipated future earning
capacity, anticipated future additional assets, dollar amount of assets to be managed, related
accounts, account composition, competition, courtesy accounts, family/employee accounts,
negotiations with client, etc.). Please Note: If the Client maintains less than the aggregate
account minimum assets and are subject to Derby's annual minimum fee, the Client will pay
a higher percentage Annual Fee than that referenced in the above fee schedule.
Notwithstanding the fee structure in the Investment Advisory Agreement,
Registrant generally charges reduced fees at certain breakpoints as follows:
FEE SCHEDULE
All Securities, except
Fixed Income
securities:
1.00% Per Annum on the initial $3,000,000.
0.75% Per Annum on Next $2,000,000.
0.05% Per Annum on these Securities over $5,000,000.
Fixed Income Securities:
0.50% Per Annum on the initial $3,000,000.
0.25% Per Annum on Next $2,000,000.
0.05% Per Annum on these Securities over $5,000,000
Please Note: Conflict of Interest: Although the Registrant will allocate client assets
consistent with the client’s designated investment objective, the fact that the Registrant
earns a higher fee for management of securities other than fixed income as referencedin
the above fee schedule, the Registrant has a conflict of interest since it will presentan
economic incentive to allocate more assets to those types of securities from which it will
earn a higher advisory fee. ANY QUESTIONS: The Registrant’s Chief Compliance
Officer remains available to address any questions regarding this conflict of interest.
FEE SCHEDULE FOR CLIENTS ENGAGED AFTER 11/22/2021
This Fee schedule is consistent with the above referenced transition to The Colony Group,
as referenced above.
Assets Under Advisement (Including Discretionary Assets and Non-Discretionary
Assets)
Annual Fee for Investment Advisory Services
First $2,000,000 1.00%
Next $3,000,000 or portion thereof 0.90%
Next $5,000,000 or portion thereof 0.80%
Next $20,000,000 or portion thereof 0.60%
Next $20,000,000 or portion thereof 0.50%
Over $50,000,000 negotiable
RETIREMENT CONSULTING
As indicated above, The Registrant can also provide investment advisory and consulting
services to participant directed retirement plans per the terms and conditions of a
Retirement Plan Services Agreement between Registrant and the plan. For such
engagements, Registrant shall assist the Plan sponsor with the selection of the Retirement
Platform from w h i c h Plan participants shall make their respective investment choices
(which may include investment strategies devised and managed by Registrant), and, to the
extent engaged to do so, may also provide corresponding education to assist the
participants with their decision making process. Plan sponsors may elect which service
level they prefer. Generally, Plan sponsors are given the option to retain the registrant for
3(38) fiduciary services or 3(21) fiduciary services. The Registrant generally charges a
fee at an initial annual rate of 0.25% of the initial $5 million of plan assets (subject to a
reduced percentage (%) fees for additional plan assets), as detailedin the Fee schedule
below.
PLAN ASSETS 3(21) SERVICE LEVEL 3(38) SERVICE LEVEL
ANNUAL FEE % ANNUAL FEE %
Initial $5,000,000 0.25% 0.30%
Next $2,500,000 0.20% 0.25%
Next $2,500,000 0.15% 0.20%
Next $5,000,000 0.10% 0.15%
Next $5,000,000 0.05% 0.10%
Over $30,000,000 0.01% 0.05%
DCM INCOME OPPORTUNITY PARTNERSHIP,L.P.
In general, t h e R registrant will receive from the DCM Income Opportunity Partnership,
LP (“DCMIOP”) a fee payable quarterly in arrears (the “Management Fee”) in an amount
equal to 0.25% of the net asset value of each Limited Partner’s Capital Account at the end of
each quarter. Generally, unless otherwise agreed to by the investment manager in writing,the
annual total Management Fee shall be no less than two thousand five hundred dollars
($2,500.00). The Registrant, in its sole discretion, may charge a lesser total Management Fee,
reduce or waive its minimum fee or aggregate account minimum, charge a fixed fee, or
charge no fee, based upon certain criteria (i.e. anticipated future earning capacity, anticipated
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