Fees and Compensation
Fees for Investment Advisory Services – Separately Managed Accounts
The way we charge investment management fees is established in your written agreement. Fees are paid
quarterly in advance. Investment management fees are calculated using the agreed-upon fee schedule
applied to the market value of the portfolio assets on the last business day of the previous quarter. Some
clients authorize us to directly debit the fees from specific client accounts designated by them; other clients
prefer that we bill them. Fees are prorated for the first quarter in which you engage us based on the number
of days from the effective date of the investment management agreement to the last day of the calendar
quarter.
If you terminate your investment management agreement during a calendar quarter, you will be charged a
prorated fee. In the event that you have prepaid fees, upon termination any prepaid fees will be calculated
on a prorated daily basis and any unearned fees will be promptly refunded. If you terminate your contract
with us while invested in private investment vehicle with a fund through a third party, those investments
remain subject to the terms of the private offering memorandum and partnership agreement. Termination
of your engagement with us does not permit you to alter the terms of the private fund’s offering
memorandum, including redemption terms.
We charge fees based on a standard fee schedule, ranging from 0.20% to 1.5% based on the value of your
portfolio, per annum. Certain clients may have more favorable fee arrangements depending on the amount
invested with us, including a flat annual fee.
Quattro charges investment management fees on client assets invested in private real estate investments
and other private funds, including those sponsored and organized by Quattro When these investments are
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not valued by the private fund manager or another acceptable third-party such as a Fund Administrator, the
fee will be calculated using the agreed-upon fee schedule applied to the value of contributed capital of each
investment.
Our fees do not include brokerage commissions, transaction fees, management fees of investment vehicles,
including private funds. These fees are paid by the client and Quattro’s investment management fee is an
additional fee. You may incur certain charges imposed by custodians, brokers, third party investments and
other third-party activities such as fees charged by managers or custodians, deferred sales charges, odd-lot
differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage
accounts and securities transactions. Mutual funds, exchange-traded funds and “private partnerships” also
charge management fees, and in the case of private partnerships may also charge performance / incentive
fees, which are disclosed in each fund’s prospectus or offering documents. We do not receive any portion
of these commissions, fees, management fees and costs.
We do not independently value any securities held in your accounts. Prices provided by custodians, or
third parties pricing services are used for reporting performance, and for calculating fees.
“Financial Advisory Services” may include but are not limited to, financial planning, real estate
transactions, estate planning, tax planning, expense management, retirement planning, risk management,
and other business matters. While we have standard hourly billing rates for Financial Advisory Services,
all fees are subject to negotiation.
IRA Rollover Recommendations
When we provide investment advice to you regarding your retirement plan account or individual retirement
account, we are fiduciaries within the meaning of Title I of the Employee Retirement Income Security Act
and/or the Internal Revenue Code, as applicable, which are laws governing retirement accounts. The way
we make money creates some conflicts with your interests, so we operate under a special rule that requires
us to act in your best interest and not put our interest ahead of yours. Under this special rule’s provisions,
we must:
• Meet a professional standard of care when making investment recommendations (give prudent
advice);
• Never put our financial interests ahead of yours when making recommendations (give loyal
advice);
• Avoid misleading statements about conflicts of interest, fees, and investments;
• Follow policies and procedures designed to ensure that we give advice that is in your best
interest;
• Charge no more than is reasonable for our services; and
• Give you basic information about conflicts of interest.
We benefit financially from the rollover of your assets from a retirement account to an account that we
manage or provide investment advice, because the assets increase our assets under management and, in
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turn, our advisory fees. As a fiduciary, we only recommend a rollover when we believe it is in your best
interest.
Conflicts exists between the interests of the investment adviser or associated person and the interest of the
client; the client is under no obligation to act upon the investment adviser’s or associated persons
recommendation; if the client elects to act on any of the recommendations, the client is under no obligation
to effect the transaction through the investment adviser or the associated person.
Fees for Investment Advisory Services – Proprietary Private Fund
Quattro is an advisor to private funds.
The fees and expenses as outlined below are associated with an investment in the Fund sponsored by
Quattro and are separate and distinct from the fees and expenses charged by the Underlying Fund and its
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