Item 5 Fees and Compensation
INVESTMENT SUPERVISORY SERVICES ("ISS")
INDIVIDUAL PORTFOLIO MANAGEMENT FEES
Our annual fees for Investment Supervisory Services are based upon a percentage of assets
under management and generally range from 0.25 of 1% to 2%, dependent upon account
type, relationship, size, and other circumstances.
The annualized fee for Investment Supervisory Services is charged as a percentage of assets
under management, according to the following schedule:
Assets Under Management Annual Fee
Equity Portfolio 1.25%
Balance Portfolio 1.25%
Fixed Income Portfolio 0.75%
Yellin-Yamshon-Rubinstein, LP Fund 1.5%*
*An additional '0.5 of 1%' performance fee is charged when fund returns above 12% annually
On a case-by-case basis, Stevens First Principles Investment Advisors determines an
appropriate fee structure based on the size, complexity and investment objectives of the
client's account. Fee arrangements consist of a management fee. Other fees and
commissions are charged by the broker custodian and Stevens First Principles Investment
Advisors does not receive any part of the brokers' compensation. The terms and conditions of
the fee structure are mutually agreed upon prior to entering into an advisory agreement.
Account Management Fees: Stevens First Principles Investment Advisors typically charges
a fee for account management that is calculated and paid as a percentage of the assets
under management. The Account Management Fee is calculated at an annual rate not to
exceed 1.25%, with the exception of Yellin-Yamshon-Rubinstein, L.P., which the maximum
fee is not to exceed 2%. Fees are calculated on a quarterly basis, and are payable in arrears
based on the value of the account at the end of each billing period. The Account Management
Fee is prorated for periods less than a full billing cycle and adjusted to cover any additional
contributions made during that period.
A minimum of $100,000 of assets under management is required for this service with
exceptions made depending on the client, circumstances, and Stevens First Principles
Investment Advisors. This account size may be negotiable under certain circumstances.
Stevens First Principles Investment Advisors may group certain related client accounts for the
purposes of achieving the minimum account size and determining the annualized fee.
Limited Negotiability of Advisory Fees: Although Stevens First Principles Investment
Advisors 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. These include the complexity of the client,
assets to be placed under management, anticipated future additional assets; related
accounts; portfolio style, account composition, reports, among other factors. The specific
annual fee schedule is identified in the contract between the adviser and each client.
We may group certain related client accounts for the purposes of achieving the minimum
account size requirements and determining the annualized fee.
Discounts, not generally available to our advisory clients, may be offered to family members
and friends of associated persons of our firm.
PORTFOLIO MANAGEMENT SERVICES FEES
Our annual fees for Portfolio Management Services are based upon a percentage of assets
under management and generally range from .75 of 1% to 1.5%, dependent upon account
type, relationship, size, and other circumstances.
The annualized fee for Portfolio Management Services is charged as a percentage of assets
under management, according to the following schedule:
Assets Under Management Annual Fee
Equity Portfolio 1.25%
Balance Portfolio 1.25%
Fixed Income Portfolio 0.75%
Yellin-Yamshon-Rubinstein, LP Fund 1.5%*
*An additional '0.5 of 1%' performance fee is charged when fund returns above 12% annually
Majority of our clients are charged asset based fees per above schedule, however, certain
clients are charged fixed fees. Stevens First Principles Investment Advisors' fixed fees range
from $250 to $3,000. This fix fee is limited to 529 educational plans and other deferred
retirement plans. The account size may be negotiable under certain circumstances.The
annualized fee for Portfolio Management Services is charged as a fixed fee, negotiated on a
case-by-case basis. Overall factors to be considered will include the type and amount of
assets to be managed and the complexity of the client's circumstances. Stevens First
Principles Investment Advisors may group certain related client accounts for the purposes of
achieving the minimum account size and determining the annualized fee.
Limited Negotiability of Advisory Fees: Although Stevens First Principles Investment
Advisors 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. These include the complexity of the client,
assets to be placed under management, anticipated future additional assets; related
accounts; portfolio style, account composition, reports, among other factors. The specific
annual fee schedule is identified in the contract between the adviser and each client.
We may group certain related client accounts for the purposes of achieving the minimum
account size requirements and determining the annualized fee.
...