Fees and Compensation
Description
Fees are negotiable. The specific manner in which fees are charged by
Moloney is established in the client's written agreement with Moloney.
Moloney calculates its fees on a percentage of assets under management.
The investment fee covers services to the client by Moloney including
establishment of investment objectives, investment advice, portfolio
management, periodic reviews and quarterly reporting.
The investment management fee is based on the fair market value of the
client's account at the end of each calendar quarter, per the investment
management agreement with the client, calculated to be at or below
these maximums:
Under $1,000,000 2.0%
$1,000,000 to $2,000,000 1.75%
$2,000,000 and over 1.50%
Fee Billing
Investment management fees are billed quarterly, in arrears, meaning that
fees are collected after the three-month billing period has ended. Pursuant to
the client's investment management contract and advisory fee debit
authorization, one quarter of the annual investment fee is deducted from a
designated client account each quarter by the custodian and paid to Moloney.
In the event of account termination, the client is billed a prorated fee in
accordance with the period of time the account was managed in the final
quarter.
Other Fees
Clients may utilize Moloney Securities Co., Inc., broker/dealer services to
effect securities transactions in their account, but are in no way required to do
so. In the event the client elects to utilize the brokerage services of Moloney
Securities Co., Inc., the client may pay commissions that are higher or lower
than those available from another broker/dealer for the same products or
services. Fees incurred in accounts may vary amongst Moloney Investment
Advisor Representatives and additionally, amongst accounts with the same
Moloney Securities Investment Advisor Representative.
All accounts that are carried through Moloney are held in the custody of a
designated clearing operation for Moloney. When directed by the client to
hold any assets in the custody of anyone other than a designated clearing
operation of Moloney, there may be an additional annual charge of up to
0.50% of all assets under management.
In some instances, Moloney may seek to act as a principal in a securities
transaction for a client and may receive compensation for doing so specific to
that transaction. However, Moloney will not seek to act as principal without (1)
obtaining, in each instance, prior authorization and consent of the client, and
(2) providing the client with written confirmation and disclosure of such
capacity, prior to settlement of the trade.
If the client is investing in mutual funds, a mutual fund investment
company may charge management fees on the client's account in these
securities. Clients will pay their proportionate share of the mutual fund's
investment management fees, administrative fees and applicable sales
charges in accordance with that investment company.
The client may be charged transaction fees, with Moloney acting as agent
for the client.
In some cases, Moloney Securities may be acting as a placement agent or
underwriter for a securities offering. In the event an advisor elects to help you
participate in an offering or placement in which Moloney is acting as the
underwriter or placement agent, the advisor will provide, in advance and in
addition to whatever pertinent offering or placement documentation is
required, a disclosure document for your approval and signature. This will
note the potential conflict since Moloney is acting on behalf of both you and a
securities issuer and may be compensated by the issuer. It will additionally
document that any items of potential conflict have been addressed.