Item 5: Fees and Compensation
How we are paid is disclosed in the investment advisory agreement or financial planning agreement
with the client and depends on the type of advisory service we are performing. Please review the fee
and compensation information provided below.
Investment Management Services
Our standard advisory fee is based on the market value of the assets under management and ranges
from 0% to 2% annually, depending upon the account size and services to be provided. Annual fees
are negotiable and paid in advance on a quarterly basis. The advisory fee is calculated by assessing
the negotiated percentage rates against the client’s assets under management. The fee is recalculated
on a quarterly basis in advance using current quarter-end market values.
Advisory fees are either directly debited from client accounts, or the client may choose to pay LIG
by check. Accounts initiated or terminated during a calendar quarter will be charged a pro-rated fee
based on the amount of time remaining in the billing period. An account may be terminated with
written notice at least thirty (30) calendar days in advance. Upon termination of the account, any
unearned fee will be refunded to the client on a pro-rated basis.
Financial Planning Fixed Fee
Financial Planning will generally be offered on a fixed fee or hourly fee basis. The fixed fee will be
agreed upon prior to the start of any work. The fixed fee will range between $500.00 and $1,500.00,
depending on the complexity of the client’s situation and goals. The financial planning fee is
negotiable. The fee is due at the beginning of the process, however, LIG will not request the
prepayment of fees more than $1,200.00 more than 6 months in advance.
The fee for Financial Planning fee may also be charged on an hourly basis at a rate of $250.00 per
hour. The fee may be negotiable in certain cases and is due at the completion of the engagement. In
the event of early termination by client, any fees for the hours already completed will be due.
Other Types of Fees and Expenses
Our fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses that may be incurred by the client. Clients may incur certain charges imposed by custodians,
brokers, and other third parties such as custodial fees, deferred sales charges, odd- lot differentials,
transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage accounts
and securities transactions. Mutual fund and exchange traded funds also charge internal management
fees, which are disclosed in a fund’s prospectus. Such charges, fees and commissions are exclusive
of and in addition to our fee, and we shall not receive any portion of these commissions, fees, and
costs.
Item 12 further describes the factors that we consider in selecting or recommending broker- dealers
for client’s transactions and determining the reasonableness of their compensation (e.g.,
commissions).
The Fund: The Fund shall pay for all ordinary operating and other expenses, including, but not
limited to, investment-related expenses (such as brokerage commissions, clearing and settlement
charges, custodial fees, interest expenses, expenses relating to consultants, brokers or other
professionals or advisors who provide research, advice or due diligence services with regard to
investments, appraisal fees and expenses and investment banking expenses); research costs and
expenses (including fees for news, quotation and similar information and pricing services); legal
expenses (including, without limitation, the costs of on-going legal advice and services, blue sky
filings and all costs and expenses related to or incurred in connection with LIG’s compliance
obligations under applicable federal and/or state securities and investment adviser laws arising out
of its relationship to the Fund, as well as extraordinary legal expenses); accounting fees and audit
expenses; administrative fees; tax preparation expenses and any applicable tax liabilities (including
transfer taxes and withholding taxes); other governmental charges or fees payable by the Fund;
director and officer and/or errors and omissions liability insurance premiums or fiduciary liability
insurance premiums for directors, officers and personnel of LIG; costs of printing and mailing reports
and notices; and other similar expenses related to the Fund, as LIG determines in its sole discretion.
To the extent that expenses borne by the Fund are paid by LIG, the Fund will reimburse LIG for such
expenses. There may be additional fees or charges that result from the maintenance of a Limited
Partners participation, including but not limited to, fees associated with purchasing interests via an
IRA and Qualified Retirement Plan. Other fees are generally deducted from the capital account of
each Limited Partner.