Item 5 – Fees and Compensation Adviser Compensation
Managed Accounts
JDE Capital Partners charges fees for investment management and investment consulting services
that are based on a percentage of assets under management as well as fixed consulting fees. For
accounts that are charged based on a percentage of assets under management, these accounts are
billed monthly in arrears and calculated on the market value of the account as of the end of the
calendar month.
JDE Capital Partners’ investment management fee is equal to 1/12th of 2.00% (i.e., 0.166%
monthly or approximately 2.00% annually) of the market value of the account, depending upon
the services and investment mandate for that individual client. The computation of the investment
management fee is to be made as of the end of each calendar month and one hundred percent
(100%) of the investment management fee shall be paid immediately thereafter. A pro rata
Management Fee is charged to Clients on any amounts permitted to be invested or withdrawn
during any calendar month. Clients are responsible for any commissions or transaction costs
charged by the custodian in association with implementing and maintaining this strategy.
Financial planning services, for an existing management client, are generally included in the
advisory fee described above, but we reserve the right to charge separately for investment
consulting and financial planning services.
JDE Capital Partners may negotiate the fee charged in certain circumstances, such as the account
having a substantially larger than average value or other factors impacting the relationship of the
account. In all cases, JDE Capital Partners discloses the fee charged prior to services being
provided and includes the fee schedule in the client’s investment management agreement.
For accounts opened mid-billing period, fees are prorated based on the number of days’ services
are provided during the initial billing period.
Private Investment Funds
Private Investment Fund investors bear their proportionate share of the applicable investment
management fee charged to such Private Investment Fund. Compensation earned by JDE Capital
Partners for providing investment advisory services to the Private Investment Funds is generally
comprised of an asset-based management fee, which does not exceed 2.00% and is generally
payable annually as of the last day of the calendar year. In the event that an advisory agreement is
terminated prior to the conclusion of a billing period, JDE Capital Partners will refund a pro rata
portion of any pre-paid management fees. The management fee is generally deducted directly from
the Private Investment Fund. Private Investment Funds that hold private equity, real estate or other
illiquid investments are typically charged fees based upon the capital commitments made by
investors rather than the market value of the relevant Private Investment Fund.
Performance Fees: In addition to the asset-based management fee, the general partner or
managing member of each Private Investment Fund, which is an affiliate of JDE Capital Partners
will receive a performance-based fee of up to 20%, provided that the Private Investment Funds
returns to investors exceed a high-water mark and any applicable hurdle amounts or preferred
return. JDE Capital Partners and the general partner or managing member of each Private
Investment Fund have the authority to waive or reduce fees charged to certain investors. Details
about a particular Private Investment Fund’s specific fee structure can be found in the relevant
Private Investment Fund’s offering documents.
Deduction of Fees: Clients can elect to have the fee deducted from their account or billed directly
and due upon receipt of the billing notice. If clients elect to have the fee automatically deducted
from an existing account, they are required to provide the custodian with written authorization to
deduct the fees from the account and pay the fees to JDE Capital Partners. JDE Capital Partners
provides the custodian with a fee notification statement.
The custodian will send account statements to clients at least quarterly showing all disbursements
from the account, including advisory fees. Clients should review account statements received from
their account custodian and verify that appropriate advisory fees are being deducted.
Other Non-Advisory Fees: Clients should be aware that they can invest in some mutual funds and
exchange traded funds (“ETFs”) directly, without the services of JDE Capital Partners. But in this
case, they would not receive the services provided by JDE Capital Partners that are designed to,
among other things, assist them in determining which mutual funds or ETFs, and level of
allocation, are more appropriate to their financial condition and objectives. Accordingly, clients
should review both the fees charged by the mutual fund(s), ETFs and JDE Capital Partners to fully
understand the total fees that they will pay.
Clients may be charged fees by other parties in connection with the investment advice provided
by JDE Capital Partners. These other fees may include brokerage commissions and/or transaction
fees charged by the client’s custodian. In addition, clients may incur certain charges imposed by
third parties other than JDE Capital Partners in connection with investments made through the
account including, but not limited to, mutual fund sales loads, 12(b)-1 fees, contingent deferred
sales charges and surrender charges, and IRA and qualified retirement plan fees. The management
fees charged by JDE Capital Partners are separate and distinct from the fees and expenses charged
by investment company securities that may be recommended to the client. A description of these
fees and expenses is available in each security prospectus.
JDE Capital Partners may assist the client in establishing a managed account(s) through a qualified
...