Item 5–Fees and Compensation
A. Compensation and Fee Schedule
Investment Advisory Services – Fees are negotiable from client to client and are tailored to the specific
services that IWM and the IAR, as applicable, will provide to the client. The fee is negotiated between
the IAR and the client, and the amount of the fee, as well as how IWM and the IAR may share the fee,
is stated in the Client Agreement. In general, the maximum total fee that IWM may charge its advisory
clients is 2.00% per annum of a client’s assets under management, although certain clients may agree
to a higher fee in certain limited circumstances. IWM or an IAR, if applicable, may choose, in their
discretion, to waive all or portions of their fee for a specific client. It should be expected that advisory
fees will vary, materially and substantially, among IWM’s clients based on a variety of factors.
Investment Advisory Services for the Fund – IWM charges the Fund an annual fee of 0.80% of the
Fund’s total average annual net assets, calculated and paid quarterly.
Financial Planning Services – IWM charges a flat fee between $1,000 and $10,000 per engagement or
an hourly fee depending on the level of service agreed to by the client. The financial planning
consulting services may be complimentary and at no cost for certain clients with a broader
relationship with IWM, including those who are or become investment advisory clients. Any such fee
waivers will be determined on a case-by-case basis at IWM’s sole discretion. For financial planning
clients who do not have an advisory agreement with IWM, the financial planning consulting services
fee is collected upon execution of the financial planning consulting agreement, which is before the
financial plan is delivered to the client. IWM generally seeks to provide the financial plan to its clients
within weeks of receiving all required documents. IWM may provide the financial planning consulting
service to unaffiliated advisors, rather than to clients directly, and such advisors may pay the
applicable fees.
B. Deduction of Advisory Fees
Client fees are most often directly-debited from client accounts by assigned custodians. Fees are
calculated and assessed either monthly or quarterly, in advance, based on the market value of the
assets in client accounts as of the last business day of the preceding month or calendar quarter, as
applicable. The investment advisory fee assessed on contributions into a client account during a
calendar month or quarter, as applicable, will be prorated based on the number of days remaining in
the month/quarter at the time of contribution. Fees are assessed on all assets under management,
including securities, cash, and money market balances.
C. Advanced Billing of Fees and Client Refunds
Clients may be billed monthly or quarterly in advance, as set forth in the relevant Client Agreement.
If a client has prepaid advisory fees and then chooses to terminate IWM’s management of the account
prior to the month-or quarter-end, the client is entitled to receive a prorated refund of the fees for the
days remaining in the month or quarter. A client may terminate the account by notifying IWM or the
IAR, or by notifying the custodian and delinking the account from IWM, but subject to any notice
provisions or requirements in the Client Agreement. The reimbursement due will be calculated by
multiplying the advisory fee that was debited at the beginning of the month or quarter by the number
of days remaining in the month or quarter from the date the account was transferred or distributed
divided by the total number of days in the month or quarter. Such refunds are calculated and
submitted on a monthly or quarterly basis depending on the fee arrangement with the client.
Other Fees
Custodian fees are independent of our fees and should be disclosed to you by your custodian.
Unless stated in the Client Agreement, IWM’s investment advisory fees do not cover any applicable
trading costs. Clients will incur brokerage and other transaction costs, and those fees will be reflected
in the custodian statements. Please refer to Item 12 of this Brochure for a description of IWM’s