ITEM 5: FEES AND COMPENSATION
IMC Portfolio Fee
Clients in the Program pay an asset-based fee (“Portfolio Fee”) assessed quarterly for all of
the services received. In certain circumstances, the Portfolio Fee schedule may be negotiable
based upon various factors, including, but not limited to, the specific services being provided,
the type and size of the account, historical or anticipated transaction activity, the range of
additional services provided to the account and the amount of client relationship assets
placed in the Program.
The Portfolio Fee includes the following services:
1. Development of investment strategy
2. IMC investment advisory services
3. Consultant evaluation services
4. Brokerage, custody and clearing services
5. Investment Manager investment management services, unless otherwise stated in the
contract
6. Performance reporting services
7. Investment Manager search and due diligence services
8. Administrative services
The Portfolio Fee is based on a recommended schedule for separately managed Equity and
Balanced Accounts and a separate recommended schedule for Fixed Income Accounts.
The annual recommended Portfolio Fee schedule is set forth below.
Equity & Fixed
Balanced Income
First $1,000,000 1.95% 0.85%
Next $4,000,000 1.60% 0.75%
Next $5,000,000 1.00% 0.65%
Balance .80% 0.55%
The minimum account size per Portfolio Manager is $100,000.
TWP will calculate the Fee for a quarter, based on a percentage of the market value of the
managed assets in the account, as of the close of business on the last business day of the prior
quarter, including cash and shares of money market funds.
The Portfolio Fee may be more or less than the cost of purchasing the same services
separately or from a different source, depending on the level of the fees charged for the same
or similar advisory, brokerage, custodial and reporting services. Some Investment Managers
may require higher minimum account sizes outside of the Program. The Portfolio Fee may
be negotiable.
Investment Manager fees range between 0.20% and 0.80% per annum on assets under
management and depend on the size of the client relationship and type of investment
management services provided. A premium may be charged for certain Investment
Managers. Typically, fees for Investment Manager services in the Program are included in
the Portfolio Fee, unless otherwise stated in the contract.
TWP may receive selling compensation from the issuer of an Other Asset, including
placement fees, sales loads, commissions, and/or Rule 12b-1 (distribution) fees. TWP’s fees
for Consulting and Reporting Services are lower when TWP receives such selling
compensation.
The fees for Consulting and Reporting Services are as follows:
OTHER ASSET TYPE FEE FEE
(SELLING (NO SELLING
COMPENSATION COMPENSATION
RECEIVED) RECEIVED)
Fixed Income Mutual Funds or
ETFs held at TWP 0.25 % 1.00%
Equity Mutual Funds or
ETFs held at TWP 0.25% 1.00%
Other Assets held at TWP N/C N/C
All Other Assets held away from TWP
(i.e. Limited Partnerships) 0.25% 1.00%
Fixed Income Management Group Fees
The fee Schedule for Fixed Income Management Group services is as follows:
Total Managed Assets Portfolio Fee
Up to $1,000,000 0.55%
Next $4,000,000 0.50%
Next $5,000,000 0.45%
Balance 0.40%
The minimum account size per TWP FI is $500,000.
Corporate Cash Management Fees
The fee Schedule for Corporate Cash Management services is as follows:
Assets in Account Annual fee rate
$1,000,000-$50,000,000 .150%
$50,000,001-$100,000,000 .120%
$100,000,001-$150,000,000 .100%
Greater than $150,000,000 .080%
Brokerage, Custody and Clearing Services
TWP will provide or arrange for trade execution, clearing and custody (“Brokerage
Services”) pursuant to the terms of a separate agreement between TWP and the client
(“Brokerage Agreement”). The fees for Brokerage Services are included in the Portfolio Fee
paid by the client. TWP will send confirmations and monthly statements of account on any
securities transactions by Portfolio Managers in the Managed Assets. Portfolio Managers
will direct securities transactions to TWP or to another broker/dealer, who shall be
responsible for directing such transactions, as appropriate, to TWP. Securities transactions
may be effected through TWP or other broker-dealers as Portfolio Managers determine.
When appropriate, TWP or Portfolio Managers may combine market orders for more than
one client for the same security in accordance with applicable laws and regulations.
In connection with Brokerage Services, TWP may receive compensation in addition to the
Brokerage Fee as set forth above. For example, mutual funds (including money market
mutual funds) in which Managed Assets are invested may pay TWP a distribution and/or
service fee (Rule 12b-1 fee) which, when added to the Portfolio Fee, would increase the total
compensation paid to TWP, directly or indirectly, in connection with the Managed Assets in
the Program. Clients will incur brokerage and other transaction costs, as disclosed on 17 and
...