Item 5 - Fees and Compensation
FIM Group is a purely fee-only firm. This means that we are only compensated by the direct fees
that we charge our clients, not by commissions for selling and/or recommending specific
investment products.
Investment Management Services Fees
Fees for Investment Management Services are computed as a percentage of the month-end market
value of the client’s investment portfolio under management. Billing invoices are prepared
monthly and are based upon the market value of the billable assets in a client’s account on the last
day of the previous month, and are payable in advance. Payment of fees may be made directly by
the client, or with client’s advance authorization may also be made to FIM Group by the account
custodian by debiting the client’s account for such fees. Clients are able to terminate the written
billing authorization or agreement at any time. FIM Group reserves the right to change its fees
upon giving clients 60 days’ advance written notice. Fees may, at the discretion of FIM Group,
be calculated based upon the total value of related accounts. Fees may be modified based upon
individual circumstances or complexities at the discretion of FIM Group.
FIM Group’s standard annualized fee is 1.44% and is normally billed at 0.12% per month. Certain
types of accounts, where the management of such accounts is limited to a pre-defined specific list
of securities, or the strategy requested by the client provides limits to the scope of investments
available, may be billed at 50% of the standard fee. This fee applies to all securities that FIM
Group has discretion over, as well as cash.
Investment Management Services may be terminated by written notice by either party. If a client
terminates the agreement within 21 days of signing it, FIM Group refunds 100% of all prepaid
fees.
All fees paid to FIM Group for Investment Management Services are separate from the fees and
expenses charged to shareholders of both open-end and closed-end fund shares. Funds pay
advisory fees to their related investment advisers, which payments reduce the net asset value of
the Funds’ shares. Therefore, when a fund exists in a client’s portfolio, the client pays two levels
of advisory fees, one directly to FIM Group for its management services and one indirectly to the
managers of the funds held in their portfolios. In many cases, the client could invest in the same
fund without paying a fee to FIM Group but would then not have the benefit of the advice, review
and monitoring FIM Group provides. A complete explanation of these expenses charged by the
mutual funds is contained in each mutual fund’s prospectus. Clients are encouraged to read each
fund prospectus carefully.
FIM Group is a global manager that purchases securities in multiple markets throughout the world.
Because of this, clients may experience fees related to holding of certain securities, such as
American Depositary Receipt fees, local market taxes or other fees related to certain markets.
These fees are paid directly from the client account to the custodian.
Client is responsible for all brokerage, custodian, stock transfer and other similar fees incurred in
connection with the client’s account.
FIM Group may allow clients to hold assets in their portfolio that are not managed by FIM Group.
Such assets will be coded as Unsupervised Assets. It is understood that FIM Group makes no
warranty as to the value of these assets or their suitability. Such assets are not included in the total
billable market value of a client account, and are not included in standard reports from FIM Group.
Investment Consultation Service Fees
Fees for Investment Consultation Services are based on a flat project fee, which varies depending
upon the complexity of services, level of expertise required and specific situation and requests of
the client. Fees for Investment Consultation Services are determined at the time of engagement
and are due and payable upon delivery of the services.
Investment Consultation Services may be immediately terminated upon written notice by either
party. The client will be invoiced for time incurred by FIM Group to the date of termination.
Retirement Plan Administration Service Fees
FIM Group may provide retirement plan administration to some clients. As described above, FIM
Group may utilize third party services providers for this. Fees for this service will be negotiated
at the time of engagement for these services. In most cases, FIM Group does not charge an
additional fee to these clients for administrative services, or pass on those of the third-party service
provider to the client, other than the standard investment management fee of plan accounts
managed by FIM Group.
Financial Planning Service Fees.
Fees for Financial Planning Services vary and correspond directly to the complexity of the services
requested by the client. Fees are determined at the time of engagement and may be waived at
management’s discretion. Fees for all plans are due upon delivery of the advice or written plan.
If client circumstances or objectives change such that a new investment plan is required, there may
be an additional charge. Clients utilizing FIM Group’s Investment Management Services will
receive Financial Planning Services for no additional cost, other than their fee for Investment
Management Services.
Clients may terminate the Financial Planning Services agreement upon written notice and the client
will be invoiced for any portion of fees incurred by FIM Group on the development of the plan
prior to termination. It is the client’s responsibility to update his or her financial goals with FIM
Group or secure additional services as may be needed. A new agreement can be executed to secure
additional services as needed.
Corporate Trustee Services
FIM Group does not receive any additional compensation, outside of our investment management
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