Item 5: Fees and Compensation
A. Fees Charged
All Clients will be required to execute a written agreement that will describe the type of services to be
provided, the fees for those services, and other items.
Financial Planning Services
Financial planning fees are either charged on an hourly basis, a fixed fee basis, or included with asset
management services. Our hourly charge is $400 per hour. Fixed fees will generally be between $2,000 and
$20,000. The fee range stated is a guide. Fees may be higher or lower than this range, based on the nature
of the engagement. Fees are negotiable and will depend on the anticipated complexity of the Client’s
financial situation.
Asset Management Services
Generally, fees vary from 1.00% to 1.50% per annum, payable quarterly in arrears, based upon the average
daily balance of your managed assets for the quarter. Fees are generally based on the following fee schedule:
Account Size Annual Rate*
Under $750,000 1.50%
$750,001 – $1,000,000 1.25%
$1,000,001 – $10,000,000 1.10%
$10,000,001 – $15,000,000 1.00%
$15,000,000 and above Negotiable
*Annual Rate may include all Covered Costs. See Item 5.C below for
more detail.
Clients with $50 million or more under management may engage Ferris Capital for asset management
services on a fixed fee basis. Fixed fees for asset management services range from $50,000 to $250,000
per annum. The fee ranges stated are guides. Fees are negotiable at the sole discretion of the Advisor, and
may be higher or lower than these ranges, based on the nature of the account. Factors affecting fee
percentages include the size of the account, complexity of asset structures, and other factors. Certain
legacy Clients may be engaged at a different rate.
Use of Independent Managers
As noted in Item 4, the Advisor will implement all or a portion of a Client’s investment portfolio utilizing
one or more Independent Managers. To eliminate any conflict of interest, the Advisor does not earn any
compensation from an Independent Manager. The Advisor will only earn its investment advisory fee as
described above. Independent Managers typically do not offer any fee discounts but may have a
breakpoint schedule which will reduce the fee with an increased level of assets placed under management
with an Independent Manager. The total blended fee, including the Advisor’s fee and the Independent
Manager’s fee, will not exceed 2.50% annually.
Consulting Services
Consulting fees may be charged on an hourly basis, fixed-fee basis, or included with asset management
services. Our hourly rate is up to $1,000 per hour. Due to the varied nature of consulting services, fixed
fees will vary greatly, but generally between $2,000 and $25,000. The fee range stated is a guide. Fees
may be higher or lower than this range, based on the nature of the engagement. Fees are negotiable, and
will depend on the anticipated complexity and duration of the services to be provided.
Private Fund Management
Clients should refer to each Fund Offering Memorandum for more information regarding the Fund’s fees
and related disclosures. The Advisor waives fees with respect to Client assets invested in the Fund.
B. Fee Payment
Financial Planning and Consulting Services
Fees for financial planning and/or consulting will be billed to each Client upon completion of the
engagement deliverable[s]. Ferris Capital will not request or accept fees of $1,200 or more for services to
be performed six months or more in advance.
Asset Management Services
Asset management fees will primarily be deducted directly from the Client’s account[s] at the Custodian,
pursuant to the Client’s authorization. The advisory fee is paid quarterly, at the end of each calendar
quarter, based upon the average daily balance of your managed assets for the quarter. This means that if
your annual fee is 1.00%, then each quarter we will multiply the value of your account[s] by 1.00% then
divide the value by the number of days in the year, multiplied by the number of days in the quarter to
calculate our fee for that quarter. Once the calculation is made, we will instruct the Custodian to deduct
the fee from your account[s] and remit it to Ferris Capital. For other Clients in a fixed fee relationship,
asset management fees can be also paid by check upon receipt of the invoice for the applicable quarter.
Use of Independent Managers
For Client accounts implemented through an Independent Manager, the Client’s overall fees may include
Ferris Capital’s investment advisory fee (as noted above) plus investment management fees and/or platform
fees charged by the Independent Manager[s], as applicable. In certain instances, the Independent Manager
or the Advisor may assume responsibility for calculating the Client’s fees and deducting all fees from the
Client’s account[s].
Private Fund Management
Clients should refer to the Fund Offering Memorandum for information regarding the Fund’s fee payment
and related disclosures.
C. Other Fees
There are a number of other fees that can be associated with holding and investing in securities. Clients
not participating in the Wrap Fee Program will be responsible for fees including Covered Costs. Clients
engaged in asset management services outside of the Wrap Fee Program that do not have fees directly
deducted from their account[s] will receive an invoice at the end of the applicable quarter. The invoice
will describe fees incurred in the course of managing the Client’s account[s] during the applicable quarter
and are payable by the Client upon receipt. Expenses of a fund will not be included in asset management
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