Fees and Compensation
Description & Fee Billing
Compensation for investment management varies according to the client/advisor account
relationship. Generally, client accounts will be charged a quarterly investment management
and advisory fee based on a percentage of the total portfolio value. TMG carefully analyzes
all securities in each account to determine an accurate total portfolio value. The fees will be
paid in arrears at the end of each quarter and will be deducted automatically from the
managed account. TMG’s current fee schedule for such accounts is as follows:
Managed Assets Annual Percentage Rate
Less than $1,000,000 1.00%
$1,000,000 but less than $2,000,000 .90%
$2,000,000 but less than $3,000,000 .80%
$3,000,000 but less than $4,000,000 .70%
$4,000,000 but less than $5,000,000 .60%
$5,000,000 or more .50%
The minimum annual advisor’s fee per household is $1,000.
Compensation for some investment management services, such as those mentioned below,
may vary from the schedule above. Also, in certain circumstances, compensation may be pre-
Tellone Management Group, Inc. – Brochure Part 2 to Form ADV 2022
negotiated between client and advisor. In these instances, TMG will be compensated by a
specified percentage of assets under management, on an hourly basis, or through a set and
pre-arranged fixed fee.
TMG also manages private Limited Partnership accounts that consist of pooled investment
portfolios designed to allow qualified investors the opportunity to participate in an
alternative investment fund. TMG receives compensation monthly from these accounts
based upon the individual partnership agreements.
The General Partner receives a management fee from the Fund as of the last business day of
each month in arrears equal to 0.1042% (approximately 1.25% on an annual basis) of each
Limited Partner’s total capital account balance in the Fund as of the last business day of such
month, prior to any withdrawals as of such last business day. The minimum investment for
each fund ranges from $15,000 to $50,000, depending on the particular Fund (subject to such
exceptions as the General Partner permits). A Limited Partner may not reduce its capital
account balance below the Fund minimum (or such lesser amount as may be permitted by
the General Partner) unless withdrawing from the Fund as a Limited Partner. Additional
information can be found in the respective Fund documentation.
Fees for Participant Directed Retirement Plan Consulting
TMG, additionally, provides ongoing consulting services to participant directed qualified and
non-qualified retirement plans which includes independent searches and ongoing
performance measurement of plan investments, facilitating the Plan’s investment options as
well as policy and guideline formulation. Fees for Retirement Plan Consulting services are
negotiated based on the selection of services, prior to the signing of the consulting
agreement. TMG charges an asset based or flat/fixed fee and will vary depending on the level
and scope of services required. TMG generally serves as investment fiduciary to the plan and
can serve in a non-discretionary or discretionary capacity.
Fees for Financial Planning
For standalone financial planning services, fees are charged either hourly or as a flat annual
fee. The final hourly fee will be directly dependent upon the facts and circumstances of a
client’s financial situation and the complexity of service(s) requested. An estimate of total
cost will be provided at the start of the relationship. 50% of estimate is due upon signing of
the agreement with the remaining 50% due upon completion. For flat annual fees, 50% will
be due upon signing of the agreement with the remaining 50% due upon completion as well.
For financial planning clients who also have an investment management relationship with
TMG, we reserve the right to waive any additional fees for financial planning.
Tellone Management Group, Inc. – Brochure Part 2 to Form ADV 2022
Other Fees
In addition to fees charged directly by TMG, client accounts may be subject to other costs
related to brokerage commissions or related service fees assessed by the custodian. TMG
uses an approach when dealing with such cost that is geared to provide the client with the
best value and service experience.
Tellone Financial Services, Inc., a related party to TMG, provides private lending, accounting
and tax services for TMG. Clients of TMG may or may not be clients of Tellone Financial
Services, Inc. Any fees associated with these services are separate from fees charged by TMG.
As outlined below in “Other Financial Industry Activities and Affiliations”, from time to time,
loans that are outside of the funds’ investment parameters could be referred to third parties,
including clients of the firm. Tellone Financial Service’s fee for this service is generally 1.25%
of the loan amount for loans of $100K or higher, and for a loan amount under $100K, a flat
rate will be negotiated for loan origination and processing. Additionally, Tellone Financial
Services will typically charge a document preparation fee ranging from $300 - $360. Fees
may vary in some situations, are subject to change, and are reflected in the loan
documentation.