Item 5: Fees and Compensation
A. Fees Charged
All Adviser Clients will be required to execute a Sub-Advisory or Consulting Agreement that will
describe the type of services to be provided and the fees to be charged, among other items. Adviser
Clients are under no obligation at any time to engage, or to continue to engage, IRP for services and
may terminate the relationship in accordance with the terms specified in the executed agreement.
Sub-Advisory Services
Generally, fees vary from 0.0% to 0.5% per annum of the market value of an Adviser Client’s assets
or as pursuant to the Sub-Advisory Agreement entered into by IRP and the Adviser Client. Adviser
Clients may also pay a fixed fee ranging from $1,500 to $15,000 per month dependent upon the scope
of services and the size of the Adviser Client. Fees are negotiable, and the fee range stated is a guide.
The fee chosen within that range is determined in part by the nature of the services, including the
amount of assets IRP will manage, complexity of asset structures, the complexity of the portfolio, and
other factors that would be dependent upon the specific engagement. The fees associated with the use
of Third Party Managers are in addition to the fees charged by IRP.
Financial Consulting
Financial Consulting services provided to Adviser Clients are done either on an hourly fee, a fixed fee,
or basis point arrangement, depending on the nature of the engagement and scope of services agreed
upon. Hourly rates range from $150 - $350 for all investment professionals at IRP, and the fixed fees
will typically range from $2,500 - $25,000 depending upon the complexity of the engagement. Basis
point fees vary from 0.0% to 0.5% per annum based upon the assets at the Adviser Client for which
IRP has been engaged for. These fees are a guide and are subject the terms of the Consulting
Agreement between IRP and the Adviser Client.
Consulting Services
Consulting services are done either on a fixed fee basis (which may be per project or per month) or on
an hourly fee basis. Fixed fees will be between $2,500 and $60,000 per annum. Hourly fees will be
between $75 and $250 per hour. The fee range stated is a guide. Fees can be higher or lower than this
range, based on the nature of the engagement. Fees are negotiable and will depend on the anticipated
complexity of the engagement.
Separately Managed Account Services
The management fee charged to clients for separately managed account services is 0.00% to 0.50%
annually.
B. Fee Payment
Sub-Advisory Services
Fees for sub-advisory services will be dependent upon the particular Adviser Client and the negotiated
agreement between IRP and that Adviser Client.
Fees are calculated by either IRP or the Adviser Client, based upon the assets IRP provides sub-
advisory services for held at the Adviser Client. The fee payment terms are negotiated between IRP
and the Adviser Client and stated in the agreement which can include payment by the Adviser Client
to IRP by check.
The fees paid to IRP by the Adviser Client may be paid from a percentage of the asset management
fee the Advisor Client collects from their clients. IRP is then indirectly receiving client asset
management fees from the client accounts held with the Adviser Client.
Financial Consulting
Fees for consulting services are paid in accordance with the engagement agreement with the Adviser
Client. The fees can be paid on a project basis, invoiced monthly by IRP for ongoing services, or
calculated by the Adviser Client and remitted to IRP as per the terms of the Consulting Agreement.
Consulting Services
Fees for consulting services are paid in accordance with the engagement agreement with the Adviser
Client or individual where the fees can be paid either on a project basis or invoiced monthly by IRP
for ongoing services.
Separately Managed Account Services
The management fee charged to clients for separately managed account services is deducted by IRP
directly from the account or calculated and paid by the Adviser Client to IRP on a quarterly basis in
advance based upon the net quarter end value of the account including cash balances.
C. Other Fees
There are a number of other fees that can be associated with holding and investing in securities. Clients
of the Adviser Client will be responsible for fees including transaction fees for the purchase or sale of
a mutual fund or Exchange Traded Fund, or commissions for the purchase or sale of a stock. Expenses
of a fund, ETF, or separately managed account will not be included in management fees, as they are
deducted from the value of the shares by the mutual fund manager. When selecting mutual funds that
have multiple share classes for recommendation to clients, the Adviser Client will take into account
the internal fees and expenses associated with each share class in accordance with the Adviser Client’s
policies and procedures regarding share classes. For complete discussion of expenses related to each
mutual fund, you should read a copy of the prospectus issued by that fund. IRP and the Adviser Client
can provide or direct you to a copy of the prospectus for any fund that IRP recommends to you.
Please make sure to read Item 12 of this informational brochure, where broker-dealer and custodial
issues are discussed.
D. Pro-rata Fees
If a client of the Adviser Client terminates during a billing period, the client will pay a management
fee for the number of days left in that period or will be entitled to a refund of any management fees for
the remainder of the period depending upon if the Adviser Client charges management fees in advance
or in arrears as described in the ADV Part 2A of the Adviser Client.
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