Item 5 Fees and Compensation
MCF receives its compensation through a combination of fixed and asset-based fees. The fee schedule for
client engage MCF for services which meet their individual situation, however clients may choose to engage
MCF for the services of their choosing. We retain the option to negotiate fees on an individual basis. Factors
nticipated future
additional assets under management and related accounts, among other factors. The specific manner in which
fees are charged by MCF is established in a clien written agreement with MCF. Please Note: MCF generally
rounds fee amounts to the nearest whole dollar.
Wealth Management
Financial planning services The fixed fee for stand-alone planning and consulting services ranges from $200
to $1,000 or more per month, dependent on the breadth of services selected by the client. Fees may be billed
monthly, quarterly, or up front, dependent on the scope of the engagement through a fixed fee payment structure.
Fixed fees for financial planning services are typically waived for clients with more than $500,000 of assets under
management, however we retain the option to negotiate fees on an individual basis. Please Note:
Grandfathered Fee Schedules. Many clients have and will continue to be grandfathered under fee schedules
and/or agreements that precede the fee schedule set forth at this time. As a result, MCF clients could be subject
to various different fee schedules and/or arrangements, including those that may be higher or lower than the fee
schedule set forth below. ANY QUESTIONS
available to address them.
Portfolio management for individuals and/or small businesses & selection of other advisors (including private
The asset-based fee schedule for our portfolio management
services is outlined in the table below. Please Note: Grandfathered Fee Schedules. Many clients, including
certain clients who became clients of MCF through an acquisition, have and will continue to be grandfathered
under fee schedules and/or agreements that precede the fee schedule set forth at this time. As a result, MCF
clients could be subject to various different fee schedules and/or arrangements, including those that may be
higher or lower than the fee schedule set forth below. ANY QUESTIONS
Timothy A. Gavin remains available to address them.
Fee Schedule:
If the market value of the assets under management is less than $500,000.00 on the initial billing date,
an annual fee of 125 basis points (1.25%) will apply to all assets under management.
Otherwise, if the market value of the assets under management is greater than or equal to
$500,000.00, initially, or anytime thereafter, the following fee schedule will apply:
Annual Fee (%)
On the first $3,000,000 1.00%
On the next $7,000,000 0.50%
On amounts in excess of $10,000,000 0.40%
The fee schedule shall apply to the aggregate amount of the accounts under management. Should the
market value of the assets under management decrease below $500,000.00 after a lower rate has been
previously applied, MCF will honor the lower rate.
Tax return preparation and filing services Tax return preparation, filing, and estimated tax payment determination
services are generally offered to clients with a minimum of $1,000,000 of assets under management, for a
separate and additional fee. Fees are quoted based on the specific engagement, with a minimum fee of $1,000
per engagement. The specific scope of services to be provided and manner in which fees are charged by MCF
is established in a clien written agreement with MCF. Please Note: clients are not required to engage MCF
for tax services and may choose to work with any tax professional of their choosing.
Accounting and CFO services - Fees are quoted based on the scope of the engagement and billed on a fixed fee
basis, with a minimum fee of $18,000. Accounting and CFO services may include, but are not limited to
bookkeeping, bank account reconciliations, income and expense classification, bill-payment, preparation of
adjusting journal entries, and financial statement preparation. The specific scope of services to be provided and
manner in which fees are charged by MCF is established in a clien written agreement with MCF.
Private Investment Funds - From time to time, MCF forms and offers interests in closed-end, affiliated private
investment funds. For certain qualified investors that make a large commitment, the level of the asset-based
management fee may be reduced. In the event the affiliated private investment fund charges a performance-
based fee, investors will pay a percentage of profits after a return of contributed capital and a preferred return.
Private investment fund investors will also incur additional fund expenses, including, but not limited to
administrative, tax, audit, and legal, expenses
private placement memorandum and related offering documents.
Performance-based fee arrangements create an incentive for the firm to recommend investments which may be
riskier or more speculative than those which would be recommended under a different fee arrangement. In order
to reduce potential conflicts of interest, the firm does not show preferential treatment to accounts under a
performance-based fee arrangement.
See Item 10 Other Financial Industry Activities and Affiliations and Conflicts of Interest for additional
information on Conflicts of Interest.
MCF Institutional
Portfolio management for individuals and/or small businesses MCF charges an annual rate of 0.50%, billed in
quarterly installments for its asset allocation models (managed portfolio strategies service).
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