Item 5 Fees and Compensation
Our annual fees for separately managed accounts are based upon a percentage of assets under
management and generally range from 0.5% to 1.0%. Asset-based fees are charged quarterly based on the
asset balance at the end of the preceding quarter. Accordingly, an account being charged 1% of assets
would be charged 0.25% of the asset value at the beginning of each quarter.
Fees for our individual clients are billed, and due, at the beginning of each calendar quarter, in advance for
that quarter. For the first quarter an account is managed by Shaker, the fees are prorated over the number
of days the account was under management in the quarter and billed in arrears along with the fee for the
following quarter. If an account is closed during a quarter, the client will receive a refund of any unearned
fees that have already been paid to Shaker, pro-rated according to the number of days remaining in the
billing period.
Some accounts are charged more or less than the standard fees mentioned above. Discounts or fee
waivers, not generally available to our advisory clients, are offered to family members and friends of
associated persons of our firm.
Shaker Investments also receives fees from TAMP sponsors or overlay managers for the Model Portfolio
program(s) based on the amount of assets which they manage in the model portfolio for which Shaker
provides investment recommendations. The management fees paid to Shaker Investments from the TAMPs
vary by sponsor.
A minimum of $50,000 of assets under management is required to establish an account management
relationship. This account size is negotiable under certain circumstances. Shaker Investments LLC can
group related client accounts for the purposes of achieving the minimum account size and determining the
annualized fee. Qualified investors in the Tower Fund are required to invest a minimum of $250,000.
As part of our Management Agreement clients authorize the custodian for the account to deduct the Shaker
Investments management fee directly from the account upon presentation of an appropriate invoice
showing the calculation of the fee. This can be waived and alternative arrangements for billing of fees can
be arranged. A copy of the invoice will also be sent to each client concurrently. The custodian will not
confirm our fee but will pay the amount based on the fee amount communicated to the custodian by us and
send it directly to us. Custodians will provide account statements directly to the client. Clients are urged to
compare custodian statements with invoices provided by Shaker to confirm the accuracy of our fees.
Fees charged to Limited Partners in the Tower Fund include a management fee and when applicable an
incentive performance fee. All fees charged to Tower Fund investors are described in detail in the offering
memorandum. Employees and former employees of the Adviser who are limited partners are not charged
the management or incentive fee.
Limited Negotiability of Advisory Fees: Although Shaker Investments has established the aforementioned
fee schedule(s), we retain the discretion to negotiate alternative fees on a client-by-client basis. Client facts,
circumstances and needs are considered in determining the fee schedule, which means that a client’s
advisory fee may be greater or less than the fees described above. These include the complexity of the
client, assets to be placed under management, anticipated future additional assets; related accounts;
portfolio style, account composition and reports, among other factors. The specific annual fee schedule is
identified in the Management Agreement between the adviser and each client.
GENERAL INFORMATION
Termination of the Advisory Relationship: A client agreement can be canceled at any time, by either party,
for any reason upon receipt of 30 days written notice. Upon termination of any account, any prepaid,
unearned fees beyond the 30-day notice period will be refunded. In calculating a client's reimbursement of
fees, we will pro rate the reimbursement according to the number of days remaining in the billing period.
Mutual Fund Fees: All fees paid to Shaker Investments LLC for investment advisory services are separate
and distinct from the fees and expenses charged by mutual funds and/or ETFs to their shareholders. These
fees and expenses are described in each fund's prospectus. These fees will generally include a management
fee, other fund expenses, and a possible distribution fee. Shaker does not benefit from the fees charged to
clients by mutual funds or ETFs. Shaker will not recommend mutual funds that impose a sales charge or
12b-1 fees (a marketing fee). Clients using mutual funds in their Asset Allocation strategy accounts should
review the fees charged by the funds and our fees to fully understand the total amount of fees to be paid by
the client and to thereby evaluate the advisory services being provided.
Additional Fees and Expenses: In addition to our advisory fees, clients are also responsible for the fees
and expenses charged by custodians and imposed by broker-dealers, including, but not limited to, any
transaction charges imposed by a broker-dealer with which an independent investment manager effects
transactions for the client's account(s). Shaker Investments does not benefit from transaction and
brokerage costs incurred in client accounts except to the extent of "soft dollars". Please refer to the
"Brokerage Practices" section (Item 12) of this Form ADV for additional information. Clients are urged to
seek a full explanation of the fees and charges imposed by their chosen custodian from a representative of
that custodian.
Grandfathering of Minimum Account Requirements: Pre-existing advisory clients are subject to Shaker
Investments minimum account requirements and advisory fees in effect at the time the client entered into
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