Item 5. Fees and Compensation
EMM has three different methods to bill its clients:
1) A percentage of assets under management, which can be up to 1 % (100 basis points) per
annum. See Standard Fee Schedule below.
2) Fixed fee based upon scope and complexity of the services and the professional(s)
rendering services.
3) Hourly fees ranging from approximately $80 to $700 per hour, based upon the level of
expertise and experience of the professional providing the service and the service
provided.
EMM’s Fees for Investment Advisory Services
With respect to Investment Advisory Services (discussed in Item 4 above), EMM charges an
annual investment management fee based upon a percentage of the market value of the assets
under management as follows:
Standard Fee Schedule
Annual Fee Value of Account Assets
0.75% on the first $10,000,000
0.60% on the next $15,000,000
0.45% on the next $50,000,000
0.35% over $75,000,000
Clients with a standard fee schedule are charged in advance at the start of each calendar quarter
based upon the value (market value or fair market value in the absence of market value) of the
client's account at the end of the previous quarter. For certain existing clients, advisory services
are billed in arrears based upon the average value of the account during the prior quarter (as
determined in accordance with the applicable terms of the governing documents pertaining to
such clients’ investment advisory agreements with EMM). EMM has at times requested a
minimum annual fee which is more than the fee calculation under the schedule above for smaller
size accounts. For alternative investments, recommended by EMM (i.e. Hedge, Private Equity
and Venture Capital Funds), EMM will bill on uncalled committed capital to the alternative
investment.
EMM, if authorized, may deduct its advisory fees directly from the client account, and clients
will receive invoice detailing the advisory fee deducted from their account for the quarter. If the
client does not wish to have EMM deduct its advisory fee directly from their account, they may
elect to pay EMM via check or wire.
In certain limited circumstances, EMM charges non-discretionary clients for investment advisory
services based upon an hourly rate or a fixed fee basis, which is negotiated with the client on a
case-by-case basis.
Portfolio Manager and Service Provider Fees
EMM’s advisory fees are in addition to the asset-based and/or performance-based fees and any
other fees and expenses charged to the client by selected Portfolio Managers. Clients should
refer to each Portfolio Manager’s account opening and disclosure document (Part 2 of Form
ADV, prospectus, offering memorandum, or other disclosure document) for information
regarding the fees charged by a particular Portfolio Manager.
In some instances, EMM may utilize an unaffiliated third party platform provider (“Service
Provider”) to access certain Portfolio Managers at a reduced fee. For this access, client
reporting, accounting, and other services, the Service Provider charge is typically 0.09% per
annum. This fee is separately deducted directly from the client account by the Service Provider
on a quarterly basis.
Financial Planning, Tax, Family Office and other services
Financial Planning, Tax, Family Office or other services outside the scope of investment
advisory services are not included in the investment advisory fee, and will be engaged separately.
Services will be billed at an hourly, fixed fee, or asset based fee. Asset based fees will often be
based on the combined scope of services offered.
Negotiability of EMM’s Advisory Fees
The above represents EMM’s standard fee schedule. In various circumstances, EMM's fees may
be, and from time to time are, negotiated. Negotiated fees may deviate from the fee ranges
disclosed above. In EMM’s sole discretion, negotiated fees are based upon certain criteria,
including, but not limited to, client needs, related accounts, services required, reporting
requirements, anticipated assets to be managed, and future additional assets.
Certain legacy client agreements are governed by fee schedules different from those listed above,
based upon prior contractual relationships or historical fee schedules.
Termination of EMM’s Advisory Relationship with a Client
A discretionary or non-discretionary investment advisory agreement may be cancelled at any
time, by either EMM or the client, for any reason upon receipt of 30 days prior written notice. If
either the client or EMM terminates the investment advisory agreement prior to the end of a fee
period, EMM will return to the client any prepaid, unearned fees (determined on a pro rata basis,
based on the number of days elapsed during the applicable fee period), and any earned, unpaid
fees will be due and payable by the client.
No Fees or Other Remuneration from Portfolio Managers
EMM does not receive any fees or other economic incentives from any unaffiliated Portfolio
Managers in connection with a client’s decision to invest with any unaffiliated Portfolio
Manager.
As noted above in Item 4, EMM, where appropriate, recommends its clients invest in one or
more private investment funds managed by Sage, an affiliate of EMM. To avoid a conflict of
interest and having an advisory client of EMM pay EMM and its affiliate multiple fees on the
same assets invested with EMM and its affiliate, Sage will waive its respective management fees
with respect to the portion of such client’s assets: (i) that are invested in one or more of the
private investment funds managed by Sage and (ii) with respect to which EMM separately
receives an asset-based investment advisory fee. Notwithstanding any of the foregoing, EMM
client assets that are invested in a private investment fund managed by Sage will be subject to,
and bear, their share of any management and performance-based fees charged to such fund by
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