Item 5: Fees and Compensation
Description
Integre serves as an investment advisor on a discretionary basis to individuals and institutions. For
its separate account clients, Integre will develop a customized investment program for each client
Form ADV Part 2 Brochure | October 2019
based on the client's goals, diversification requirements, risk tolerance, tax profile and other
factors. The firm has a very limited number of legacy non-discretionary accounts.
Integre charges each client an advisory fee based on a percentage of assets under management.
The advisory fee charged depends on (i) the client's investment objective and strategy (e.g., a total
return strategy based primarily on common stocks or an income strategy based on bonds), (ii) the
size of the account and (iii) other factors. The standard fee schedule is set forth below; fees are
negotiable.
Fee Schedules
The fee schedule for our investment management services are set forth below. Fees are payable
upon inception of the account and at the start of each calendar quarter thereafter. The market value
of each of the securities in the account shall be computed as of the close of trading on the last
business day of March, June, September, and December. The advisory fee for the account for the
following quarter shall be computed on the valuation as of the close of the previous quarter as
follows.
For all Integre investment strategies the annual charge, payable quarterly in advance, is:
A. For accounts with a market value of less than $10 million:
• 1.50% of the first $2,500,000 of market value
• 1.40% of the next $2,500,000 of market value
• 1.30% of the next $2,500,000 of market value
• 1.20% of the next $2,499,999 of market value
B. For accounts with a market value equal or greater than $10 million:
• 1.25% of the first $10,000,000 of market value
• 0.90% of the remaining balance of market value
C. The total amount paid using this schedule may be more or less than the
amount charged by Integre under other fee schedules offered to other
clients.
D. Fees are subject to negotiation in certain cases.
Account Minimums
Integre prefers a minimum portfolio of $1 million for our equity investment strategies, which may
be waived depending on various circumstances.
Fee Billing
Advisory fees are generally assessed quarterly in advance.
Form ADV Part 2 Brochure | October 2019
For certain clients that maintain custodian brokerage accounts, Integre with the written consent of
clients, provides such clients and custodian with an invoice for payment of such advisory fee.
Each client invoice describes the amount of the advisory fee, the value of the client’s assets on
which the fee was based and the manner in which the fee was calculated. Unless the client directs
otherwise, the custodian directly deducts the advisory fee from the clients’ account and remits
such amount directly to Integre. At least on a quarterly basis, the custodian sends each client a
statement summarizing all amounts disbursed from such client’s account during such period,
including the amount of such client’s advisory fees, if any, paid directly to Integre by the
custodian.
For other client relationships, Integre invoices the client directly for advisory fees, and the clients
pay Integre directly without directly debiting the fees from the client’s custodial account.
A client may terminate its investment management agreement at any time on written notice. If
funds are contributed during the quarter a pro-rated advisory fee will be charged on such assets
based on the number of days such funds were managed by Integre during such quarter. If funds
are withdrawn during a quarter a pro rata portion of the advisory fee will be refunded based on the
number of days such assets were in the client account during the quarter.
Other Fees or Expenses
In considering Integre, a prospective client should be aware that the client’s investment portfolio
will have costs outside of investment management fees. Brokerage commissions and possible
custodian fees are charged separately (see Item 12 for more information). The fees charged by
Integre are separate and distinct from the fees charged by recommended mutual funds, ETFs,
brokers and custodians. A description of these mutual fund or ETF fees is available in each mutual
fund’s or ETF’s prospectus. The factors that should be considered by a prospective client in
analyzing the cost structure of a client’s portfolio, the nature of the investments to be managed,
average commission costs, custodial expenses, if any, the anticipated level of trading activity and
the amount of advisory fees and commissions that would be charged.