Karpus Management Inc

Item 5: Fees and Compensation

Investment Advisory Services
Our fees for investment management services are based on a percentage of your assets that we
manage pursuant to the terms of the investment management agreement between you and
Karpus. Karpus charges a minimum annual fee of $2,000, which can be reduced at the Adviser’s
discretion. Karpus’ investment advisory fees can be negotiated based on account size, complexity
or other considerations. Fees are generally set in accordance with the fee schedules set forth
below.

In accordance with the investment management agreement, clients have the right to terminate
the contract within 30-days’ written notice to Karpus. Alternatively, clients have the right to receive
a fee discount if they agree to enter into an investment management agreement for a specified
duration.

Clients can obtain a fee discount dependent on the duration of the contract they chose when
executing a discretionary management agreement or the service chosen. Advisory fee discounts
are also available to Karpus clients who have had a relationship with the Firm for over five (5)
years. Karpus does not discount advisory fees for accounts that are referred under a promoter
agreement. However, a promoter can discount a portion of the fee it receives at its discretion if the
promoter has provided written notification to Karpus.

In addition to obtaining clients through referral arrangements (please see Item 14: Client Referrals
and Other Compensation of this Brochure), Karpus obtains certain clients through unaffiliated
third-party consultants (“Consultants”) that have been hired by the client to provide all account
client servicing. Under these arrangements, the client pays an investment advisory fee that has
been negotiated between Karpus and the Consultant for the investment advisory services
performed by Karpus. Karpus does not offer a fee discount to these clients. In addition, in some
circumstances as agreed upon between the client and their Consultant, the Consultant will
calculate and pay the discretionary advisory fee due to Karpus which can include a different fee
methodology.
Karpus serves as a portfolio manager or sub-manager to wrap fee programs. In accordance with
these arrangements, the client pays a single fee to the wrap sponsor for investment management
and brokerage services. Karpus’ investment advisory fee is negotiated with the wrap sponsor and
Karpus does not offer duration-based fee discounts with these arrangements.

When Karpus provides investment advice to clients regarding retirement accounts or individual
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retirement accounts (“IRAs”), the Adviser is a fiduciary within the meaning of Title 1 of the
Employee Retirement Act (“ERISA”) and/or the Internal Revenue Code (“IRC”), as applicable.
When deemed to be in the client’s best interest, Karpus provides investment advice to a client
regarding distributions from an ERISA retirement account (like a 401(k) account) into an IRA
account (also referred to as a “rollover”), or recommends a similar transaction including rollovers
from one ERISA sponsored plan to another or one IRA to another IRA. Such investment advice
or recommendation presents a conflict of interest because we receive compensation from you
for our investment advice when these retirement account assets are placed in an IRA or non-
ERISA sponsored Plan (as opposed to maintained in the ERISA sponsored Plan account over
which Karpus cannot charge for its investment advice). Clients should be aware that other
consequences can be triggered in a rollover, such as some lower fee classes of mutual funds
available to ERISA-sponsored plans are not available to other types of accounts. No client is under
any obligation to rollover a retirement account to an account managed by Karpus. However,
Karpus does not advise clients on assets maintained in an ERISA-sponsored plan.

Cash Investment Management Service
The fee for our "Cash Investment Management Service" program is computed monthly or
quarterly as stated in the client’s fee schedule on the annual rates and charged the following
month or quarter for which services are rendered. The current fee schedule for the management
of cash is based on the average invested balance at the following rates:

 Fee schedule for Cash Investment Management Service:

      1%                     of market value on first $1,000,000
      0.80                   of 1% of market value on next $1,000,000
      0.60                   of 1% of market value on next $3,000,000
      0.50                   of 1% of market value on next $5,000,000
      0.45                   of 1% of market value on next $15,000,000
      0.35                   of 1% on balance over $25,000,000

Asset Management Service
The fee for "Asset Management Service", based on the risk tolerance of the client, is set forth in
the investment management agreement between the client and Karpus. The fee is billed and
payable quarterly in advance based on the value of your account on the last day of the previous
quarter and placed in escrow until earned. Upon request, the fee can be calculated and billed
quarterly in arrears based upon the average capital balance for the previous three months. Our
fees for Asset Management Services are pursuant to the terms of the investment management
agreement between you and Karpus. Fees are generally set in accordance with the following fee
schedules (“Basic Fees”):

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  Fixed Income:                 Balanced Equity Management:
     1.25%                     1.50%           of market value on first $1,000,000
     1.15%                     1.30%           of market value on next $1,000,000
     1.10%                     1.20%           of market value on next $3,000,000
...

Item 7: Types of Clients
We offer investment advisory services to individuals, ERISA plans, Taft-Hartley funds, trusts,
estates, charitable organizations, and other business entities.

In general, we require a minimum of $500,000 to open an Asset Management Services account
or $1,000,000 to open a Cash Investment Management Services account. At our discretion, we
can waive this minimum account size. We can also reduce the minimum fee at our discretion.