Item 5 Fees and Compensation
Clients pay Oak Ridge asset-based investment advisory fees. Fees are determined by agreement
with the client or with a Program Sponsor. Oak Ridge does not charge performance-based fees
to clients in our Equity Strategies or currently to any of its clients.
The annual fee percentages shown in the table below are those that are listed in the Firm’s
standard investment management agreement for separately managed accounts, including some
Sponsored Program clients who have their firm negotiate fees directly with Oak Ridge. See
below for fee information for other Sponsored Programs.
Standard Fee Schedule
Small/Mid Cap Mid Cap Large Cap All Cap Dividend Growth
First $10 million 0.95 0.85 0.65 0.80 0.75
Next $15 million 0.90 0.75 0.55 0.70 0.65
Next $25 million 0.80 0.70 0.50 0.65 0.60
Over $50 million 0.70 0.65 0.45 0.60 0.55
Fees are negotiable and may vary based on the size of the account, related clients, and other
factors. Clients can choose to be billed directly or to have fees paid through their investment
account. If they choose the latter, Oak Ridge will communicate directly with the custodian for
payment. Some arrangements will depend on the cooperation of the custodian chosen by the
client. As a result of being negotiable, final fees charged are usually different than these listed
fees.
Fees are generally billed quarterly in advance based on assets as of the end of the previous
calendar quarter. Assets in the account include securities, cash or cash equivalents and accrued
income. New accounts billed in advance will be billed based on their beginning assets and
prorated for the remainder of the quarter. The Firm may also charge a prorated fee for material
deposits to an account during a billing period. If you terminate your account during a quarter, a
prorated portion of the quarterly fees billed in advance will be refunded to you or if billed in
arrears you will be billed for the pro-rata portion of the fee for the period your account was
managed by Oak Ridge during the quarter. Typically, the refunds are issued after the end of the
quarter or when a Sponsor provides required information to Oak Ridge, but if a client wants the
refund earlier a client can request it of Oak Ridge or their Sponsor. Some clients and programs
prefer to be billed in arrears based upon the account’s value at the end of the quarter or other
relevant period (including in some cases monthly) and, depending on the circumstances, the
Firm is amenable to those billing arrangements.
The Oak Ridge fees do not include custodial fees, transaction fees, commissions, trading
markups or mark-downs, wire fees or any other fees that may be charged by brokers for
execution of trades or by custodians for holding and administering the assets in your account.
For additional information about brokerage and related expenses, see Item 12, Brokerage
Practices. There are instances where, for best execution purposes, Oak Ridge will trade
accounts, in particular for smaller or less liquid stocks, at a firm other than the Sponsor, even
for wrap accounts. This may result in a transaction charge for that trade that is not covered by
the wrap fee and clients will pay that charge (see Item 12, Brokerage Practices). If your account
holds mutual funds, including money market funds and ETFs, those funds charge internal fees
and expenses. These fees and expenses will not be paid by the wrap sponsor and are in addition
to the investment advisory fees charged by Oak Ridge and the Sponsor. Further information
about fees and expenses paid by mutual funds, money market funds and ETFs in your account
can be found in each third-party fund’s prospectus. Oak Ridge does not hold mutual funds in
its separately managed accounts and only holds ETFs in those accounts in very limited
circumstances upon request by a client, generally limited to a period of time during a tax loss
sale waiting period.
Sponsored Programs
If Oak Ridge manages your money through a Sponsored Program, including wrap fee separately
managed account programs and UMAs, and you do not negotiate the fee directly with Oak
Ridge, Oak Ridge’s investment management fees are negotiated between Oak Ridge and the
Sponsor. Oak Ridge receives its fees directly from the Sponsor as a portion of the fee the
Sponsor charges you for the Sponsored Program or UMA. You should consult the Sponsor’s
Form ADV Part 2A (Brochure) or Wrap Brochure, as applicable, for additional information on
the fees charged, billing practices and other charges related to that account.
ERISA Account Fees and Compensation
Oak Ridge acknowledges that it is a fiduciary for assets in client accounts for employee benefit
plans governed by the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”).
The information below is provided to comply with the disclosure requirements of ERISA
Section 408(b)(2). The information summarizes the direct and indirect compensation that Oak
Ridge reasonably expects to receive in connection with providing investment advisory services
to employee benefit plans subject to ERISA.
Direct Compensation – For clients who have a contract directly with Oak Ridge, the Firm
receives an investment management fee which is billed to the plan fiduciary. This fee may be
paid from the plan assets or by the plan sponsor or beneficiary, in accordance with the plan
documents. The fee is based on the assets in the account and is set forth in the fee schedule of
the agreement between the client and Oak Ridge. Upon request, Oak Ridge can provide details
on the direct compensation paid to the Firm and such amounts are generally reflected on client
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