Item 5 Fees and Compensation
Portfolio Management Services
Our fee for portfolio management services is based on a percentage of your assets we manage and is
set forth in the following fee schedule*:
Account Value From Account Value To Per Quarter Annualized
$0 $ 149,999 0.3750% 1.50%
$150,000 $ 249,999 0.3375% 1.35%
$250,000 $ 499,999 0.3125% 1.25%
$500,000 $ 749,999 0.2875% 1.15%
$750,000 $ 999,999 0.2500% 1.00%
$1,000,000 $1,999,999 0.2375% 0.95%
$2,000,000 $2,999,999 0.2125% 0.85%
$3,000,000 $3,999,999 0.1750% 0.70%
$4,000,000 $4,999,999 0.1625% 0.65%
$5,000,000 $5,999,999 0.1500% 0.60%
$6,000,000 $6,999,999 0.1375% 0.55%
$7,000,000 + 0.1250% 0.50%
Only one percentage bracket shall be assigned to the entire account. For instance, if an
account has a balance of $400,000, the client's annual fee would be 1.25% of assets under
management (charged on a pro-rata basis as described below).
*Applies to non-fixed income portfolios. Annualized fees for fixed income-only portfolios range
from .10% to .50% of the account value.
Our annual portfolio management fee for non-fixed income portfolios is billed and payable quarterly in
advance based on the value of your account on the last day of the previous quarter. Our fee for fixed
income portfolios are billed and payable quarterly in arrears based on the value of your fixed income
account on the last day of the current quarter.
If assets in excess of $100,000 are deposited into or withdrawn from an account after the inception of a
billing period, the fee payable with respect to such assets will be adjusted to reflect the interim change
in portfolio value. If the portfolio management agreement is executed at any time other than the first
day of a calendar quarter, our fees will apply on a pro rata basis, which means that the advisory fee is
payable in proportion to the number of days in the quarter for which you are a client. Our advisory fee
is negotiable, depending on individual client circumstances.
At our discretion, we may combine the account values of family members living in the same household
to determine the applicable advisory fee. For example, we may combine account values for you and
your minor children, joint accounts with your spouse, and other types of related accounts. Combining
account values may increase the asset total, which may result in your paying a reduced advisory fee
based on the available breakpoints in our fee schedule stated above.
We will deduct our fee directly from your account through the qualified custodian holding your funds
and securities. We will deduct our advisory fee only when you have given our firm written authorization
permitting the fees to be paid directly from your account. Further, the qualified custodian will deliver an
account statement to you at least quarterly. These account statements will show all disbursements
from your account. You should review all statements for accuracy. We will also receive a duplicate
copy of your account statements.
You may terminate the portfolio management agreement upon written notice to our firm. You will incur
a pro rata charge for services rendered prior to the termination of the portfolio management
agreement, which means you will incur advisory fees only in proportion to the number of days in the
quarter for which you are a client.
Private Fund Fees
The Fund will pay us a management fee payable monthly in advance, equal to 1/12 of 2% (2% per
year) of the aggregate capital commitments. The fee may be waived at our discretion. See the
offering documents for specific information related to the fee and other fund expenses.
Financial Consulting Services
We charge either an hourly or a fixed fee for financial consulting services. The fee is negotiable
depending upon the complexity and scope of the plan, your financial situation, and your objectives. We
do not require you to pay fees six or more months in advance.
The flat consulting fee generally ranges between $1,500 to $10,000. Our hourly rate for financial
consulting services is $500 per hour. The fees are negotiable depending on the scope and complexity
of the plan, your financial situation, and your objectives. An estimate of the total time/cost will be
determined at the start of the advisory relationship. In limited circumstances, the cost/time could
potentially exceed the initial estimate. In such cases, we will notify you in advance and request that you
approve the additional fee.
We require that you pay a retainer of 50% of the estimated total financial consulting fee in advance
and the remainder of the fee will be directly billed to you and due to us within thirty (30) days of your
financial plan being delivered or consultation rendered to you. In all cases, we will not require a
retainer exceeding $1,200 when services cannot be rendered within six (6) months.
At our discretion, we may offset our financial planning fees to the extent you implement the financial
plan through our Portfolio Management Service.
You may terminate the financial planning agreement by providing written notice to our firm. You will
incur a pro rata charge for services rendered prior to the termination of the agreement. If you have pre-
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