Item 5: Fees and Compensation
Investment Management Services Fees
Our discretionary asset management fee is calculated using the following tiered schedule:
Annual Advisory Fee
Aggregate Managed
AUM Service Individual
Household Funds &
Tiers Bonds
AUM Stocks
On the First $500,000 1.15% 0.80%
On the Next $1,000,000 1.10% 0.70%
On the Next $2,000,000 1.00% 0.60%
On the Next $5,000,000 0.90% 0.50%
On the Next $12,000,000 0.80% 0.40%
On the Next $24,500,000 0.70% 0.30%
Above $45,000,000 Negotiable Negotiable
*Annual cash management fee is 0.15%
The annual fees are pro-rated and paid in arrears on a quarterly basis. The advisory fee is a
blended fee and is calculated by subtotaling the asset type based upon the average daily
balance in the account during the billing period and assessing the percentage rates using the
predefined fee rates for each asset type as shown in the above chart, resulting in a combined
weighted fee. For example, over a 90-day billing period, an account valued at $3,000,000 with
half in Stocks and half in Individual Bonds would pay a quarterly effective fee of $4,130.14
(0.28%) on the Equities and $2,712.33 (0.18%) on the Individual Bonds, for a total quarterly
effective fee of $6,842.47 (0.23%) on the whole account for that billing period. In this example,
the periodic fee would be determined by the following calculation: (((($500,000 x 1.15%) +
($1,000,000 x 1.10%)) + (($500,000 x 0.80%) + ($1,000,000 x 0.70%))) x (90/365)) = $6,842.47.
Although the advisory fees may be negotiable in certain circumstances, no changes shall be
effective without agreement from the client.
Clients within the same family can qualify for lower fee rates by aggregating the total family
Household Assets Under Management (AUM) for billing purposes, while maintaining their
individual privacy. For example, if a parent and child are both clients with Impact Investors, they
would not be able to see each other’s accounts when they log into the custodian or our Client
Portal, however all family members account values are aggregated to calculate the quarterly
billing amount by calculating the effective rate for the entire Household, and then we bill each
account at that rate. The firm has a minimum asset management fee of $750 per quarter.
Advisory fees are directly debited from client accounts, or the client may choose to pay by check
in certain rare circumstances. Accounts initiated or terminated during a calendar quarter will be
charged a pro-rated fee based on the amount of time remaining in the billing period. An account
may be terminated with written notice at least 15 calendar days in advance. Since fees are paid
in arrears, no rebate will be needed upon termination of the account.
Investment Management Services Fees via Third-Party Managers
Our fees for this service depend on which Outside Manager is used for the client’s account. For
accounts where Impact Investors provides non‐discretionary advice and directs clients to
Outside Managers, the Outside Manager will debit the client’s account for the advisory fee and
will remit Impact Investors’ fee to Impact Investors. The fees will not exceed any limit imposed
by any regulatory agency. Advisory fees for the selected third-party manager will be defined in
the engagement agreement with the third‐party investment manager and Impact Investors.
Please note that the total fee charged to the client will not exceed 3%.
Ongoing Financial Planning Services Fees
Ongoing Financial Planning consists of an initial planning fee ranging between $599 and $2999
and ongoing fee that is paid monthly, in arrears, at the rate of $99 ‐ $999 per month. The initial
planning fee covers review and feedback of financial information, planning meetings and/or
calls, and the development of an initial financial plan. The fee may be negotiable in certain
cases. This service may be terminated with 30 days’ notice. Since fees are paid in arrears, no
rebate will be needed upon termination of the planning relationship.
Project-Based Financial Planning Services
Financial Planning is offered on a fixed fee basis. The fixed fee will be agreed upon before the
start of any work. The fixed fee can range between $1,000 and $100,000. The fee is negotiable.
If a fixed fee program is chosen, half of the fee is due at the beginning of process and the
remainder is due at completion of work, however, Impact Investors will not bill an amount above
$1,200 more than 6 months in advance of the service represented by the fee. In the event of
early termination, the client will be billed for the hours worked at a rate of $300 per hour. If the
initial deposit is greater than the amount billed, then the client will be refunded the difference. If
the initial deposit is less, then the client will be billed the difference.
Bespoke Private Investment Service Fees
Our firm offers a specialized platform which performs due diligence and places capital on a non-
discretionary basis for accredited investors. The quarterly fee of 1.5% is paid in arrears and
calculated based on the average daily balance of the account. The minimum fee for this service
is $3,750 per quarter.
Group Retirement Plan Fees
These fees only apply to organizations who have hired us for such services; not to individuals or
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