Item 5: Fees and Compensation
A. Fees Charged
All investment management clients will be required to execute an Investment Management
Agreement that will describe the type of management services to be provided and the fees, among
other items. Clients are advised that they may pay fees that are higher or lower than fees, they
may pay another advisor for the same services and may in fact pay lower fees for comparable
services from other sources. Clients are under no obligation at any time to engage or to continue
to engage ICM for investment services. If you do not receive a copy of this brochure at least 48
hours prior to the execution of an Agreement, you may terminate the agreement within the first
five (5) business days without penalty.
Asset Management
Generally, fees vary from 0.00% to 2.50% per annum of the gross market value of a client’s assets
managed by ICM, including cash allocations. The fee range stated is a guide. Fees are negotiable,
and may be higher or lower than this range, based on the nature of the account. Factors affecting
fee percentages include the size of the account, complexity of asset structures, and other factors.
Assets Under Management Annual Rate
0 - $999,999 0.50% - 2.50%
$1,000,000 - $1,999,999 0.50% - 1.25%
$2,000,000 and above 0.50% - 1.00%
In some circumstances, clients with smaller account balances will be charged a fee greater than
2.00% of assets under management. This can be the case when the amount of time required for a
smaller account is the same or more than for a larger account, and therefore a lower percentage-
based fee is not appropriate. In such cases, both the client and ICM will agree to a reasonable fee
based upon the amount of work performed and time spent for such client. Clients should be aware
that they may receive similar services at higher or lower rates than those for ICM, and they are
under no obligation at any time to continue to engage ICM for investment services.
American Funds
ICM has an agreement to establish investment advisory accounts directly through American Funds
in their F2 advisory share class funds. These accounts are managed by ICM based on the client’s
needs, goals and objectives. The fee for such accounts is 0.50% per annum. The fees for these
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accounts are non-negotiable.
Financial Planning
For clients whose assets are managed by ICM, the financial planning fee will vary, but is generally
expected to be a fixed fee of between $1,000 and $5,000 for the initial plan. Planning may be
performed on an hourly basis, at the rate of $250 per hour. For clients requiring updates to their
financial plans, costs range from $500 to $2,500. However, these fees are guidelines, subject to
change according to the complexity of the plan and the specific client’s circumstances.
Retirement Plan Consulting and 401(k) Consulting
For plan sponsors, fees for consulting on retirement plan options vary from 0.25% to 1.00% per
annum of the market value of the plan’s assets under the direction of ICM. These are the only fees,
either direct or indirect, that ICM reasonably expects to receive from the plan. Fees are negotiable
and will be determined by the scope and nature of the services provided, the size of the account,
the complexity of the plan document and other factors. Services may also be performed on an
hourly or fixed fee basis in limited circumstances.
For asset management clients with 401(k) or 403(b) plans, fees for choosing and monitoring plan
options will typically be a flat fee between $500 – $2,000 annually but may vary depending upon
the available options in the plan, the client’s needs, and frequency of desired monitoring.
Advisory Services to Brokerage Customers
ICM receives an advisory fee based on the Assets Under Management from Brokerage Customers
who have provided written consent to a broker-dealer to receive the investment advisory service
from ICM and have entered into a written advisory contract with ICM. The advisory fee is calculated
in advance based on the value of the Assets Under Management from Brokerage Customers as of
the end of the previous quarter. The maximum advisory fee will not exceed 1% annually. This
advisory fee is paid by the broker-dealer and is not charged to the client separately.
B. Fee Payment
Asset Management
For clients whose assets are managed by the firm, investment advisory fees will be debited directly
from each client’s account. The advisory fee is paid quarterly, in advance, based upon the net
market value of the assets being managed by ICM on the last day of the previous billing period as
valued by ICM’s portfolio administration system. For example, if your annual fee is 1.00%, each
quarter we will multiply the value of your account on the last day of the previous billing period by
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1.00%, then divide by four to calculate our fee. No adjustments are made to the advisory fee for
inflows or outflows made during a billing quarter. Additionally, to the extent there is cash in your
account, it will be included in the value for the purpose of calculating fees only if the cash is part of
an investment strategy. Once the calculation is made, we will instruct your account custodian to
deduct the fee from your account and remit it to ICM. While almost all of our clients choose to
have their fee debited from their account, we will invoice clients upon request.
Asset values provided by ICM’s portfolio administration software, for purposes of calculating fees,
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