Item 5 — Fees and Compensation
We receive an asset management fee based on the Net Assets of each account for which we
provide investment advisory services. (“Net Assets” means the market value of your account, or
fair market value in the absence of a market value as of a specified date, plus any credit balance
or minus any debit balance.) The asset management fee may vary based on the nature, size and
complexity of each client’s account and is negotiable. The satellite allocations may have a
different asset management fee; however, such funds allocated to the satellite position will only
be charged that satellite’s asset management fee and not the core asset management fee. You are
not charged twice by us on your assets.
The asset management fee does not include brokerage commissions, ticket charges, interest
charges, exchange fees, wire transfer fees, or other costs or fees associated with securities
transactions or those required by law. The client, you, may incur charges imposed by managers,
custodial fees, 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 and exchange traded funds also charge internal management fees, which are
disclosed in the fund’s prospectus.
Item 12 below further describes the factors that we consider in selecting or recommending
broker/dealers for client transactions and determining the reasonableness of their compensation
(e.g., commissions).
Such charges, fees and commissions are exclusive of and in addition to our asset management
fee, and we do not receive any portion of these commissions, fees, and costs.
Asset Management Fees
Our standard annual asset management fee schedule for individuals is as follows:
Net Assets Management Fee
$ 0 — $ 99,999.99 1.50 %
$ 100,000 — $ 999,999.99 1.25 %
$ 1,000,000 — $ 2,999,999.99 1.00 %
$ 3,000,000 — $ 6,999,999.99 0.75 %
$ 7,000,000 — $ 9,999,999.99 0.50 %
$10,000,000 and over Negotiated
There may be an annual management fee charged by a third‐party advisor for certain sub‐
accounts of our MAPP. This amount is passed on directly to the outside advisor. This fee is in
addition to our standard annual asset management fee and is charged only to those clients who
are invested in such sub‐account.
Asset management fees are typically payable in advance on the first day of the specified period.
The fees are based on the Net Assets of the account on the last day of the prior period and are a
proportionate share of the annual management fee (e.g., ¼ of the annual fee for quarterly
deductions, etc.). The specified period may be monthly, quarterly or semiannually. Typically,
asset management fees are deducted by the custodian of your account(s) quarterly. Alternate fee‐
payment arrangements (i.e., payment by check) may be made. Asset management fees shall not
be prorated for each capital contribution and withdrawal made during the applicable calendar
quarter.
If you open or terminate an Account during a calendar quarter, you will be charged a prorated
asset management fee. Such prorated asset management fee for the initial or terminal quarter is
calculated as of the first day of a month based on the Net Asset value of the account on the last
day of the prior month and is proportionate for the remaining number of months in the quarter.
For example, when opening an account in the first month of the quarter, the proportionate asset
management fee is calculated on the first day of the second month and then ⅔ of such fee is
payable for the quarter. Upon termination of any account, any prepaid, unearned asset
management fees, calculated in the same manner, will be promptly refunded, and any earned,
unpaid fees will be due and payable.
MAPP Fees
TCG ADVISORS, LP receives a Management Fee and a Performance Fee (the Performance Fee
will be explained under Item 6 below). The Management Fee is 0.1% (10 basis points) billed
monthly at a rate of 0.0000833333 for MAPP accounts of $50.0 million or less. Accounts over
$50.0 million are charged under the following schedule:
Assets Management Fee
$ 0.00 — $ 50,000,000 0.10 %
$ 50,000,000.01 — $ 100,000,000 0.08 %
$ 100,000,000.01 — $ 150,000,000 0.06 %
$ 150,000,000.01 and over 0.05 %
We may negotiate the Management and Performance Fees based on the size, duration and
number of the municipality’s account(s).
MAPP also has a reporting only component that charges a $1,000 flat fee per quarter, unless the
account is over $25mm.
Retirement and Financial Plan Fees
Retirement/financial planning services fees may be an hourly rate, a flat fee and/or a percentage
of the assets under management. We charge $1,750 for a full financial plan, $850 for a
retirement plan and $500 for an investment plan. These fees may vary based on the nature, size
and complexity of each client’s account and are negotiable. All fees are agreed to in advance of
us entering into an agreement with any client. Such fees are payable only after the plan has been
delivered to the client; however, alternative fee‐payment arrangements may be made.
An agreement for retirement/financial planning services may usually be terminated, for any
reason, upon written notice by either party. Since, however, these are often longer‐term
contracts negotiated with employers and other institutions, these contracts may have more
restrictive termination provisions. If cancellation occurs, any unearned fees will be refunded
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