Item 5 – Fees and Compensation
A. Description
JMCAM provides discretionary investment advisory services to separately managed accounts, and is compensated
based on a percentage of assets under management. All compensation paid to JMCAM by each client is separate from
the fees and expenses paid by the shareholder of each client. A summary of all the fees and expenses is contained
in the offering document, prospectus or agreement of each client.
JMCAM charges the separately managed account a monthly fee at the annual rate of 1.25% for accounts less than $2
million, 1.0% for accounts between $2-5 million, and 0.8% for accounts greater than $5 million, based on the aggregate
capital account balance at the beginning of each calendar month. JMCAM may agree in advance to reduce the fee of
a separately management account for a large strategic investor or subject to their stated guidelines and objectives.
In addition, JMCAM provides non-discretionary and non-trading advisory services based either on a tiered fee schedule
calculated on the client’s capital account balance or on a fixed fee negotiated with the client. The fixed fee payment is
applied in case there is no measurable asset base and the services provided are more of a due diligence/research
nature on money managers and portfolio creation services. The fixed fee will vary depending on the relationship and
the specifications of each individual client which will be detailed in the contract between JMCAM and the client.
B. Frequency and Payment of Fees
Asset-based fees for discretionary separately managed accounts will be calculated monthly in advance at rate described
in each client’s Investment Advisory Service Agreement. Fees will be accrued monthly, and will be taken directly from the
client’s assets and paid to JMCAM.
Non-trading advisory clients will be calculated based on the total value of the assets held in the account, on the last
business day of each month, and payable on a quarterly basis.
Non-discretionary clients on a fixed fee schedule will be billed monthly in arrears and will not be taken from client’s assets.
Compensation is payable within 30 days after presentation of an invoice.
C. Additional Client Fees or Expenses
JMCAM will bear most of the costs of providing management and administrative services to clients, including the costs of
office space, equipment, supplies, utilities and staff salaries and benefits. For separately managed accounts, the clients
will be responsible for expenses related to all investments made by JMCAM including custodial, brokerage transactional
fees, legal, tax, accounting, and operational expenses. A discussion of JMCAM’s broker selection and trading process is
set forth in Section 12.
Non-discretionary, non-trading clients may reimburse JMCAM travel expenses in addition to the fixed fee. A detail of any
additional charges will be clearly stated in the contract between the client and JMCAM.
D. Prepayment and Refund of Client Fees
For non-discretionary, non-trading clients, upon termination of any contract, any prepaid, unearned fees will be promptly
refunded, and any earned, unpaid fees will be due and payable.
Management fees for discretionary separately managed accounts are payable monthly in advance. In the event of a
termination or withdrawal of a client during the month, any fees paid but not yet earned would be promptly refunded to the
client. The client will pay a pro-rated amount for the actual number of days the assets were managed by JMCAM.
E. External Compensation for Sale of Securities to Clients
No supervised person associated with JMCAM accepts compensation for the sale of securities or other investment
products.