Item 5 - Fees and Compensation
For investment management services provided, WaterOak charges a fee to its clients. Fees are
generally quoted on an annualized basis as a percentage of client assets under management.
WaterOak’s standard fees, and minimum account size for prospective clients are set out below.
The fee schedules stated below are negotiable and can vary by investment strategy, product type,
account size, overall relationship considerations, customization, and required service levels.
Minimum Separate
Investment Strategy Fee Schedule Account Initial Balance
Equity, Balanced & Global Multi- 1.00% on first $2 million Generally $1 million or a
Asset Class Strategies 0.80% on next $3 million minimum annual fee of
*Includes Core WaterOak and 0.60% on next $5 million $10,000
affiliate strategies, as well as 0.40% on balance
Principled Investment (ESG/SRI)
strategies
Global Multi-Asset Class Strategy 0.85% on first $5 million Generally $5 million or a
with Private Equity and Venture 0.60% on next $5 million minimum annual fee of
Capital 0.40% on balance $42,500
Global Multi-Asset Class Strategy 0.50% on first $25 million Generally $25 million or
with Direct Hedge Funds, Private 0.40 on balance a minimum annual fee of
Equity and Venture Capital $137,500
Fixed Income Strategies 0.45% first $10 million Generally $2 million or a
* Includes Core WaterOak taxable 0.30% next $40 million minimum annual fee of
and tax-exempt mandates, as well 0.20% on balance $9,000
as EVM TABS Ladders strategies
Active Short Duration Fixed 0.45% on first $10 million Generally $5 million or a
Income Strategy 0.30% on next $40 million minimum annual fee of
0.20% on balance $22,500
Custom Core Enhanced Index 0.75% on first $2 million Generally $1 million or a
Strategies 0.70% on next $3 million minimum annual fee of
*Managed by Parametric Portfolio 0.50% on next $5 million $7,500
Advisors, an affiliate company. 0.40% on balance
Managed ETF Strategies 0.75% on first $2 million Generally $1 million or a
0.70% on next $3 million minimum annual fee of
0.50% on next $5 million $7,500
0.40% on balance
Minimum Separate
Investment Strategy Fee Schedule Account Initial Balance
Tactical Portfolio 1.00% on all assets Generally $1 million
Outside Manager Strategies 0.50% overlay fee on Generally $10 million or
balance a minimum annual fee of
$50,000
All advisory fees charged by WaterOak are documented in writing in the client’s investment
management agreement with WaterOak, as such agreement may be amended from time to time.
While the above fees are quoted annually, unless otherwise agreed, fees are generally charged
quarterly in arrears at a rate of ¼ of the stated fee schedule. Fees are commonly calculated based
on the client’s assets under management as of the last day of the calendar quarter, but upon mutual
agreement, certain clients are billed on different methodologies, such as average month-end value
and in the case of certain legacy clients, on the average daily market value of the client’s account
during the applicable quarter. Accounts with margin balances will be billed based on the total gross
value of assets under management. Cash flows in excess of certain thresholds may be factored into
the fee calculation if agreed upon in writing. While fees are generally payable quarterly in arrears,
WaterOak and clients may mutually agree on alternative payment options, including payment in
advance or payment monthly in arrears, and fixed- or flat-fee pricing. Clients managed by
WaterOak Florida are billed in arrears based on the average daily net assets.
Clients may elect to be billed directly for fees, or may authorize WaterOak to directly bill fees to
the client’s custodial account. If WaterOak bills the client’s custodian directly, WaterOak must
have written authorization from the client to invoice the custodial account and the client must
receive at least quarterly statements from their custodian in order to comply with applicable
regulation. See also Item 15 – Custody.
Unless otherwise provided in an investment advisory contract, WaterOak or an affiliate is typically
responsible for calculating the fees owed by a client. WaterOak will calculate the billable assets
for which WaterOak has investment discretion according to its internal accounting system.
WaterOak most commonly will use account values provided by a client’s custodian when
determining a client’s account value. In certain situations, such as when a custodian does not value
a security, or WaterOak reasonably disagrees with a price provided by a custodian, WaterOak will,
in very rare situations, utilize unaffiliated third party pricing vendors to value securities held by
clients or will fair value a security. Fair value calculations will be used in situations where current
market prices are not available, or when WaterOak elects to override a price provided by a
custodian or third party vendor. WaterOak factors in pending portfolio transactions when
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