Item 5 Fees and Compensation
Discretionary Investment Advisory Services Fees
Fees are determined based on factors such as the size of the client’s account, complexity of the client’s
account, and scope of services performed. Matrix fees for Discretionary Investment Advisory Services are
typically expressed as a percentage of assets under advisement. Annual fees range from 0.25% to 1.25%
of assets. The specific annual fee schedule is identified in the Investment Advisory Agreement between
the advisor and each client. Occasionally, Matrix may establish a fixed fee arrangement. Matrix does not
accept any prepaid fees. Advisory fees are billed quarterly in arrears and can either be directly debited
from client accounts or paid separately by the client. Most clients give Matrix authorization to directly
debit their Schwab accounts when they sign Matrix Capital Advisors’ Investment Advisory Agreement.
Although Matrix has established the aforementioned fee structure, we retain the discretion to negotiate
alternative fees on a client-by-client basis. Client facts, circumstances, and needs are considered in
determining the fee schedule. These may include the complexity of the client, assets to be placed under
management, anticipated future additional assets, related accounts, portfolio style, account composition,
and reporting needs. Senior management reviews client fees on an annual basis. As client needs and
circumstances change over time, Senior Management may determine that a fee schedule change may be
necessary. If this is the case, a meeting/call will be scheduled with the client and, once a fee change is
agreed upon, a form disclosing the updated fee will be signed by the client.
A minimum net worth of $3,000,000 is required for a client to initiate an advisory relationship with Matrix.
This minimum net worth amount may be negotiable under certain circumstances. Matrix may group
certain related client accounts for the purposes of achieving the minimum account size and determining
the annual fee.
Matrix may discount fees in special situations, including clients who are family members or friends of
employees or principals of our firm.
Consulting Services Fees (Non-Discretionary Investment Advisory Services)
Matrix's consulting services fee is determined based on the nature and scope of the services provided. All
consulting fees are agreed upon prior to entering into a contract with any client. Consulting clients are
billed at the end of each quarter.
General Fees-Related Information
Termination of the Advisory Relationship: A client agreement may be canceled at any time, by either party,
for any reason upon written or verbal notice. Upon termination of any account, Matrix shall be entitled
to charge advisory fees earned for the current quarter based on the number of days for which it provided
services to the client in that quarter.
Mutual Fund Fees: All fees paid to Matrix 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 possibly distribution fees. If the fund also imposes sales charges, a client may
pay an initial or deferred sales charge. A client may invest in a mutual fund directly without our services.
In that case, the client would not receive the services provided by our firm which are designed, among
other things, to assist the client in determining which mutual fund or funds are most appropriate to each
client's financial condition and objectives. Accordingly, the client should review both the fees charged by
the funds and our fees to fully understand the total amount of fees to be paid by the client and to thereby
evaluate the advisory services being provided.
Additional Fees and Expenses: In addition to our advisory fees, clients are also responsible for the fees
and expenses charged by custodians, hedge fund managers, Separately Managed Account managers,
private equity managers, and broker-dealers, including, but not limited to, any transaction charges
imposed by a broker-dealer with which an independent investment manager effects transactions for the
client's account(s). Please refer to the "Brokerage Practices" section of this document for additional
information.
ERISA Accounts: Matrix is deemed to be a fiduciary to advisory clients that are employee benefit plans or
individual retirement accounts (IRAs) pursuant to the Employee Retirement Income and Securities Act
("ERISA"), and regulations under the Internal Revenue Code of 1986 (the "Code"), respectively. As such,
our firm is subject to specific duties and obligations under ERISA and the Internal Revenue Code that
include among other things, restrictions concerning certain forms of compensation. To avoid engaging in
prohibited transactions, Matrix may only charge fees for investment advice about products for which our
firm and/or our related persons do not receive any commissions or 12b-1 fees.
Prepayment of Fees: Under no circumstances do we require or solicit payment of fees in advance of
services rendered.