Item 5: Fees and Compensation
Method of Compensation and Fee Schedule
ASSET MANAGEMENT
QAM offers discretionary direct asset management services to advisory Clients. QAM
charges an annual investment advisory fee based on the total assets under management as
follows:
Assets Under Management Annual Fee Quarterly Fee
up to one million dollars ($1,000,000.00) 1.00% .250%
up to three million dollars ($3,000,000.00) .85% .213%
up to five million dollars ($5,000,000.00) .75% .188%
over five million dollars ($5,000,000.00) .65% .054%
The annual fee is negotiable based upon certain criteria (e.g., historical relationship, type of
assets, anticipated future earning capacity, anticipated future additional assets, dollar
amounts of assets to be managed, related accounts, account composition, negotiations with
Clients, etc.). Fees are billed quarterly in arrears based on the amount of assets managed as
of the close of business on the last business day of the previous quarter.
Lower fees for comparable services may be available from other sources. Clients may
terminate their account within five (5) business days of signing the Investment Advisory
Agreement with no obligation and without penalty. After the initial five (5) business days,
the agreement may be terminated by QAM with thirty (30) days written notice to Client
and by the Client at any time with written notice to QAM. No fee adjustment will be made
for account deposits and/or withdrawals during a billing period. Client shall be given
thirty (30) days prior written notice of any increase in fees. Any increase in fees will be
acknowledged in writing by both parties before any increase in said fees occurs.
Client Payment of Fees
Fees for asset management services are:
• Deducted from a designated Client account. The Client must consent in advance to
direct debiting of their investment account.
Additional Client Fees Charged
Custodians may charge transaction fees and other related costs on the purchases or sales of
mutual funds, equities, bonds, options and exchange-traded funds. Mutual funds, money
market funds and exchange-traded funds also charge internal management fees, which are
disclosed in the fund’s prospectus. QAM does not receive any compensation from these
fees. All of these fees are in addition to the management fee you pay to QAM. For more
details on the brokerage practices, see Item 12 of this brochure.
Prepayment of Client Fees
QAM does not require any prepayment of fees.
External Compensation for the Sale of Securities to Clients
QAM does not receive any external compensation for the sale of securities to Clients, nor do
any of the investment advisor representatives of QAM.