Item 5 - Fees and Compensation
A. Fees and Compensation
Asset-Based Fees. For its investment advisory services to Managed Accounts and Non-Managed
Accounts, Geller Advisors generally charges an asset-based fee, which is a percentage of the assets
for which it provides such services, including asset allocation, investment manager selection and
monitoring of the client portfolios. Assets consist of Assets Under Management and Assets Under
Advisement held in client accounts for which Geller Advisors provides services to Managed Accounts
and Non-Managed Accounts.
This asset-based fee is generally charged according to the following tiered schedule:
ASSETS ANNUAL RATE
First $25 million 0.80%
Next $25 million - $50 million 0.60%
Next $50 million - $100 million 0.50%
Then on amounts greater than $100 million 0.25%
Geller Advisors may, and does, maintain cash and cash-equivalent positions (such as money market
funds) for defensive and liquidity purposes. Unless otherwise agreed in writing, all cash and cash-
equivalent positions will be included as part of Assets Under Management and Assets Under
Advisement for purposes of calculating Geller Advisors investment advisory fee.
Generally, clients who utilize the Turnkey Asset Management Program described in Item 4 will incur
additional charges. For the APM Services, clients are charged between 0.015% and 0.04% depending
on the total amount of the client’s assets in that program. Geller Advisors may, and does, waive fees
for certain clients based on the amount of assets allocated within the program. For other TAMP
services, clients are charged between 0.06% and 0.10% depending on the total amount of the client’s
assets in that program.
For Geller SPS, Geller Advisors’ annual fee for services provided is equal to 0.30% of the market value
of the assets placed in the program. Geller Advisors may, and does, waive Geller SPS fees for certain
clients and employees of Geller Advisors.
Fees are generally billed monthly in arrears based on the value of the client’s account(s) at the end
of each month. Fees are pro-rated for account opening and closing dates. Fees are generally
debited from the client’s account(s) in accordance with the client’s authorization.
Geller Advisors’ services may be terminated by either party upon written notification in accordance
with the terms of their advisory agreement. The client is responsible to pay for services rendered
until the termination of his or her agreement.
Geller Advisors, in its sole discretion, may, and does, negotiate its investment advisory fee and/or
charge a flat fee based upon certain criteria (i.e., anticipated future earning capacity, anticipated
future additional assets, dollar amount of assets to be managed, related accounts, account
composition, competition, negotiations with client, etc.). As result, similarly situated clients pay
different fees. Each client should refer to their investment advisory agreement for specific details
on their fee arrangement. Because the Geller family of companies offers clients a suite of related
financial services (including, but not limited to, investment advisory services), Geller Advisors and its
affiliates will enter into certain fee arrangements with clients where the overall client relationship
with Geller is taken into account. In such arrangements, Geller Advisors and its affiliates will track
and credit revenues and expenses across their internal books and records based on firm policies and
procedures. In general, the larger a client’s overall relationship with Geller, the more likely it is that
Geller Advisors or its affiliates will agree to reduce certain fees and expenses for such client.
Geller Advisors’ clients may also maintain a margin account, which is a brokerage account that allows
investors to borrow money to buy securities. By using borrowed funds, the customer is employing
leverage that will magnify both account gains and losses. The broker charges the investor interest
for the right to borrow money and uses the securities as collateral. Should a client determine to use
margin, Geller Advisors will include the entire market value of the margined assets when computing
its advisory fee. Accordingly, Geller Advisors’ fee shall be based upon a higher margined account
value, resulting in Geller earning a correspondingly higher advisory fee. As a result, this is a conflict
of interest since Geller Advisors has an economic disincentive to recommend that the client
terminate the use of margin.
External Investment Management Fees. The fees charged by third-party managers selected by Geller
Advisors to manage portions of its clients’ assets are separate and in addition to Geller Advisors’
asset-based fees described above. These fees are set out in the third-party manager’s investment
management/advisory agreement or, in the case of mutual funds or private funds, in the prospectus
or offering memorandum.
Tradeaway/Prime Brokerage Fees. In limited circumstances, if, in the reasonable determination of
Geller Advisors, it would be beneficial for the client, individual fixed income transactions may be
effected through broker-dealers other than the account custodian, in which event, the client
generally will incur both the fee (commission, markup/markdown) charged by the executing broker-
dealer and a separate “tradeway” or prime broker fee charged by the account custodian.
Additional Expenses Incurred by Clients. In addition to the fees described above, clients will incur
charges for brokerage and other transaction costs associated with the buying and selling of
securities within their accounts. Clients also incur custodial fees, stock transfer fees, and other
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