Item 5 – Fees and Compensation
Description
EVC is compensated by charging an annual fee as a percentage of our clients’ assets under
management. There is a flat fee schedule which varies from 0.50%-1.50% per year depending
on the client, investment strategy, assets managed, and other factors. The applicable fee
schedule is stated within each client’s investment management agreement with the Firm. Fees
are calculated and assessed in arrears, at the end of each quarter, and are based upon the market
value of the assets under management at the end of each quarter that we have managed it. For
accounts that start or terminate mid-quarter, the management fee is pro-rated. We reserve the
right to negotiate fees with clients when appropriate. Some accounts may be under different fee
schedules honoring prior agreements. A client investment management agreement may generally
be canceled at any time, by either party, pursuant to the terms of each client’s investment
management agreement.
Fee Billing
Fees will be invoiced directly or debited from the account on a quarterly basis in accordance with
the client’s written authorization. Accounts managed by the Firm are held in custody by a third-
party bank or broker-dealer of client’s choosing. Clients’ custodians will deliver a periodic (at least
quarterly) account statement directly to clients. The statements will include all transactions that
took place in the account during the period covered and reflect any fees deducted and paid to
EVC. Clients are encouraged to review their account statement for accuracy and compare them
to the reports received from EVC. Should there be any discrepancies clients should rely on the
information in their custodian’s account statement.
Other Fees
Clients will incur custodial fees, brokerage fees and commissions and other transaction costs and
miscellaneous fees in addition to our management fee. Miscellaneous fees may include (but are
not limited to) retirement plan administration fees, odd-lot differentials, transfer taxes, wire transfer
and electronic fund fees, and other fees and taxes on brokerage accounts and securities
transactions. For those accounts that contain mutual funds, clients should be aware that the fund
companies may charge their own management fees as well. Please see the “Brokerage” section
of this brochure for more detail.
EVC reserves the right to negotiate its fees with its clients. Fees on certain employee, family and
affiliated entity separate accounts and Partnership investments have been waived. Such waiving
is granted at the discretion of firm management.
EVC’s only remuneration for managing client assets are the management fees described above.
Neither EVC nor any of its supervised persons accepts compensation for the sale of securities or
other investment products.
Partnership Fees
The advisory fee that EVC receives as investment manager to the Partnership is based on the
amount of assets under management in the fund as disclosed in its offering documents. Advisory
fees for the Partnership are calculated by an independent, third-party administrator, deducted
from each investors’ capital account and verified annually by an independent auditor.
The advisory fee is waived for clients invested in the Partnership that already pay a management
fee on those same assets to us the fund. EVC reserves the right to negotiate and waive fees with
investors in the Partnership when appropriate, typically in the form of a side letter, which is
permitted in accordance with each Partnership’s offering documents.