Item 5 – Fees and Compensation
PORTFOLIO MANAGEMENT FEES
Fees for portfolio management services will be a percentage of assets under management.
Fixed Income Portfolios are charged a maximum annual fee of 0.35% of assets under management.
These accounts have a minimum fee of $50 per quarter. An initial minimum of $300,000 is required for
accounts utilizing traditional fixed income issues. The initial minimum for accounts utilizing fixed income
ETF securities is $10,000.
IRON Incertus Portfolios are charged a maximum annual fee of 0.59% of assets under management. These
accounts have a minimum fee of $50 per quarter. An initial minimum of $250,000 is required for accounts
utilizing individual stocks to comprise the equity allocation. For accounts utilizing ETF securities to comprise
the equity allocation, the initial minimum is $10,000.
IRON High-Quality Equity Portfolios are charged a maximum annual fee of 0.59% of assets under
management. These accounts have a minimum fee of $50 per quarter. An initial minimum of $250,000 is
required for this service.
IRON Core Plus Portfolios are charged a maximum annual fee of 0.50% of assets under management. These
accounts have a minimum fee of $50 per quarter. An initial minimum of $10,000 is required for this service.
IRON Equity Income Portfolios are charged a maximum annual fee of 0.59% of assets under management.
These accounts have a minimum fee of $50 per quarter. An initial minimum of $200,000 is required for this
service.
Personalized indexing accounts may be charged a maximum annual fee of 0.65% by IRON. These accounts
will also be charged fees by Vanguard Personalized Indexing (“VPI”). Clients utilizing personalized indexing
will be provided by IRON prior to the start of services and annually thereafter a copy of VPI’s Form ADV Part
2A Firm Brochure, which will include further details on the services, including VPI’s fees.
Fully customized portfolios may be charged a maximum annual fee of 1.00% of assets under management
depending upon the complexity and the due diligence and resources required. Generally, an initial minimum
of $300,000 is required for this service. This minimum investment may be higher in some circumstances,
e.g. if a client wishes to invest in illiquid private securities that in turn have relatively high minimum
investment requirements.
PRIVATE FUND FEES
On private funds, IRON will generally assess a management fee on called/invested capital (not committed
capital) and a carried interest (performance-based) fee. Depending on the terms of the private fund, the
carried interest fee might only be assessable if investors have met a Preferred Capital Achievement Hurdle
(“Hurdle”) – a minimum annualized return on investment. If a Hurdle is defined, once that Hurdle is met, the
carried interest fee may be calculated from total profit or from only the profit in excess of the Hurdle.
Management fees are typically between 0.50% and 2.00% of invested capital per year, and carried interest
fees are typically between 5% and 20% of total investment profits and assessed if a Preferred Capital
Achievement Hurdle is met. Fees are debited from the private fund investor’s balance in the private fund.
Additional details on private fund fees are described in each private fund’s agreement.
PRIVATE INVESTMENT ADVISORY FEES
For private investment advisory services, IRON will generally assess two fee types. IRON will assess a
nominal fee of $3,000 to $5,000 payable when a client purchases a non-public security through the
program. This fee is designed to cover work performed and expenses incurred prior to and concurrent with
the purchase. IRON will also assess an ongoing management fee, generally 1.00% to 2.00% of invested
capital per year.
FINANCIAL PLANNING FEES
Like for portfolio management, fees for ongoing financial planning services will be a percentage of assets under
management. Ongoing financial planning services can take many different forms. The fee rate may vary widely
depending on the scope of work required. The maximum annual financial planning fee is 1.00% of assets
under management.
FEE CALCULATION AND PROCESSING
Our fees are billed in arrears at the end of each calendar quarter based upon the value (market value or fair
market value in the absence of market value), of the client's account at the end of the previous quarter.
Quarterly fees are calculated by taking the annual billing percent, multiplying it by the month ending balance
at the end of the billing period and dividing the total by 4. All fees are prorated for contributions and
withdrawals during the billing period. Fees will be debited from the client’s custodial account unless
otherwise agreed to in writing. Sub Advised accounts may be billed in a different manner.
We may group certain related client accounts for the purposes of achieving the minimum account size and
determining the annualized fee.
LIMITED NEGOTIABILITY OF ADVISORY FEES
We retain the discretion to negotiate alternative fees and minimums on a client-by-client basis. We may offer
discounts to family members and friends of associated persons of our firm.
TERMINATION OF THE ADVISORY RELATIONSHIP
A client agreement may be canceled at any time, by either party, for any reason upon receipt of 5 days
written notice. Upon termination of any account, any earned but unpaid fees will be due and payable to
IRON.
MUTUAL FUND AND ETF FEES
All fees clients pay us for investment advisory services are separate and distinct from the fees and expenses
charged by mutual funds and/or ETFs to their shareholders. These fees and expenses are described in each
fund's prospectus. These fees will generally include a management fee, other fund expenses, and a possible
distribution fee. If the fund also imposes sales charges, a client may pay an initial or deferred sales charge.
A client could invest in a mutual fund or ETF directly, without our services. In that case, the client would not
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