Item 5: Fees and Compensation
Compensation – Investment Related Services
TFG’s annual fees for Investment Related Services for clients other than the pooled investment
funds described below generally range from 0.50% to 1.50% of the value of the financial assets
that a client has designated for TFG’s investment oversight (Covered Assets). A client determines,
in consultation with TFG, which of the client’s financial assets will constitute Covered Assets.
Compensation arrangements, in some cases, may be negotiated and fees are typically discounted
for legacy clients.
TFG’s fees are based on the value of Covered Assets as of December 31st of the preceding year,
and the resulting fee shall be payable in equal quarterly installments in advance. The initial fee is
calculated by TFG, with the client’s approval, based upon the fair market value of the Covered
Assets when the relationship is established, prorated to the end of the current quarter.
While a client relationship continues, the quarterly fees paid by that client at the beginning of the
applicable quarter are not adjusted for the client’s additions to or withdrawals from the Covered
Assets; however, when a client relationship is terminated at other than the end of a quarter, TFG
will return the unearned portion of its fees to the client pro rata based upon the number of days
remaining in the quarter.
The fees charged by TFG are separate and distinct from, and in addition to, the fees charged: (i)
by recommended Independent Managers, (ii) in connection with investments in private investment
funds, REITs, mutual funds and ETFs; and (iii) by the client’s designated custodian and other
client service providers. A description of such fees is typically available in the agreement with the
Independent Manager, in each investment vehicle’s disclosure documents or in the client’s
agreement with the applicable service provider.
Compensation – Non-Investment Related Services
TFG is compensated for Non-investment Related Services (described above) at an hourly rate
ranging from $50 to $160. Fees are paid quarterly in arrears.
Compensation – Pooled Investment Vehicles – The Fisher Fairway Private Funds
TFG is entitled to receive from each fund a quarterly management fee in advance calculated at an
annual rate of 1.0% of either the nets assets of the fund (in the case of the offshore fund) or each
limited partner's capital account (in the case of the onshore fund) (Management Fee). The
Management Fee will be prorated for any period that is less than a full quarter and will be adjusted
for contributions and withdrawals made during a quarter. TFG, in its sole discretion, may waive
7 The Fisher Group, LLC
or modify the Management Fee with respect to each fund for members, employees or affiliates of
TFG or the General Partner, FFF GP, LLC, and for certain other strategic investors.
The investors in Fisher Fairway private funds do not pay an incentive or performance-based fee.
Termination
As noted above, when a client relationship is terminated at other than the end of a quarter, TFG
will return the unearned portion of its fees.
Valuation
The custodian’s annual calculation of TFG’s fees is generally based upon the fair valuation of the
Covered Assets utilizing public market valuations of the assets in question when available.
In the case of certain securities including comingled vehicles, hedge funds, private equity or real
estate funds or other assets for which a public market does not exist, the client pays on the basis
of the most recent fair market value estimate provided by the Independent Manager, or as
determined by TFG.