Item 5: Fees and Compensation
A. FEES
• Private Funds and CLOs
The fee for investment advisory and management services provided by us to private investment
funds and CLO vehicles generally consists of two components – a base management fee and a
performance fee or incentive fee. The rate, calculation method, and payment method for our fees
are set forth in the investment management agreement between NYL Investors and the fund or
CLO vehicle, or in the organizational documents for the fund or CLO vehicle and are disclosed
in the private placement memorandum or other offering documents for the fund or CLO vehicle.
There is no standard fee schedule for services provided by NYL Investors to private investment
funds or CLO vehicles.
• Investment Companies
NYL Investors provides sub-advisory services to certain NYLIM mutual funds, referred to as
the” NYLI Funds”. NYL Investors’ fee for sub-advisory services to any mutual fund is available
in each fund’s prospectus or other disclosure document. Advisory fees are calculated based on
average daily net assets under management.
• Separately Managed Accounts
The fees for investment advisory services are negotiable and can vary depending on a variety of
factors such as the type of account, size of the account, and the investment program. Agreed-
upon fees are set forth in a fee schedule agreed to by the client and included in the client’s
investment management agreement (“IMA”). Fee calculation methodologies may vary by
client. Generally, advisory fees will be payable quarterly in arrears, based on the average of the
month-end net assets under management at the end of the period for separately managed
accounts. All advisory arrangements may be terminated by the client upon assignment by NYL
Investors or by either party upon prior written notice, according to the termination provisions
outlined in the IMA. If a contract is terminated, all advisory fees will be subject to pro rata
adjustment, based upon the date of termination.
• Fixed Income Investors
FII’s management fees generally range from 0.01% to 0.50% of average daily net assets under
management for Mutual Funds and average of the month –end net assets for institutional
separately managed accounts. However, performance and fixed fees could be higher than 0.50%
depending on account performance and account size. Since management fees are negotiable,
clients with similar investment objectives or strategies could pay different fees. The annual fee
schedules for FII’s significant investment strategies (see “Investment Strategies and Risk of
Loss” section below) will be:
Investment Grade Corporate 0.25% for all asset levels
Core Fixed Income
Intermediate Government Credit
Investment Grade Bond Index 0.10% for all asset levels
Floating Rate 0.50% for all asset levels
In addition to the management fees described above, there may be other fees associated with the
management of FII client accounts paid to NYL Investors or third parties. For example, FII may
receive certain fees related to entering into note purchase, loan or other transaction agreements.
Please refer to “Structuring and Commitment Fees” section below for additional information
regarding the nature of such fees. Additionally, the custodian for your account, which you
independently select, charges a custodial fee that varies by custodian. In addition, the broker-
dealers that we select to execute transactions in your account may charge a fee. Brokerage and
custody fees are not included in the investment management fee that you pay to us. Instead,
custodian fees are charged to you separately by the custodian, and brokerage fees affect your
account during the trade execution process. Please refer to “Brokerage Practices” section below
for additional information regarding our process for selecting brokers to execute transactions in
client accounts.
FII also serves as the principal investment manager for general and separate account assets of our
parent company, New York Life and its insurance affiliates, New York Life Insurance and
Annuity Corporation (“NYLIAC”), Life Insurance Company of North America (“LINA”), New
York Life Group Insurance Company of NY (“NYLGI”) and NYLIFE Insurance Company of
Arizona (“NYLAZ”), all of which are wholly-owned subsidiaries of New York Life. We charge
these affiliates a negotiated management fee based on asset class. The average management fee
paid to FII, REI and PCI is approximately 0.15% but is subject to change as the asset mix
changes.
• Real Estate Investors
REI charges New York Life a range of asset-based advisory fees for managing various types of
real estate-related investments. In certain cases, such as real estate equities, the fees are on a
sliding scale. We charge these affiliates a negotiated management fee based on asset class. The
average management fee paid to FII, REI and PCI is approximately 0.15% but is subject to
change as the asset mix changes.
Borrowers and/or third-party investors are charged origination fees in certain instances, including
servicing fees for the mortgages held under co-lending agreements and management fees for
their capital in the pooled real estate investment funds that REI manages. These fees are based
on a percentage of the loan or investment. The rate, calculation and payment method of REI's
fees associated with our private real estate funds are individually negotiated, are set forth in the
organizational documents for each fund and are disclosed in each fund’s private placement
memorandum or other offering documents.
REI charges a management fee for advisory services to separately managed accounts. The rate,
calculation method, and payment method are individually negotiated and are set forth in each
IMA between REI and the separately managed account client.
• Private Capital Investors
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