Item 5 Fees and Compensation
Managed Account Advisory Fees
Advisory fees cover the holistic nature of our relationship with clients, including investment and non-
investment related services across wealth management. Therefore, advisory fees are generally based
upon a percentage of the market value of assets under our advisement. Fees may vary based on numerous
factors including the Clients’ unique circumstances, complexity of the account(s) and nature of the
investment portfolio. The fees and expenses applicable to each Client are set forth in detail in Client
advisory agreements.
1407 Broadway Suite 448, New York, NY 10018
S T RAT E G I C ADV I CE & P L A N N I N G + IN V E S TM E N T M A N A GE M E N T + DI R E CT P R I V AT E I NVEST I NG
Our standard annual advisory fee for outsourced investment services is as follows:
Asset Level (market value) Annual Advisory Fee*
Up to $100 million 0.75% of net asset value per annum
$100 million - $200 million 0.55%
$200 million - $300 million 0.45%
$300 million - $400 million 0.35%
$400 million - $500 million 0.25%
$500 million + 0.15%
*Incremental fee based on net asset levels
Advisory fees are often customized based on the individual needs of Clients’ and may result in an
alternative fee or other fee arrangement, such as, being charged either a flat fee or a fee based on a
percentage of assets (including amounts invested directly by the Firm, amounts invested in Funds, as well
as amounts for which we have been retained to exercise day-to- day oversight). Advisory fees are billed or
deducted quarterly, in advance or in arrears, pursuant to the terms of the investment advisory agreement.
Any prepaid but unearned fees will be refunded upon termination in accordance with the provisions in
the Managed Account’s advisory agreement. When a Managed Account invests in the Asset Class Pools,
Managed Accounts will invest in an Asset Class Pool series that offers a management fee waiver. However,
a similar fee reduction will not be applied to the extent a Managed Account Client invests in a Direct
Private Investment Vehicle, which will be disclosed in a side letter or equivalent disclosure to each
Managed Account at the time of the recommendation. When a Managed Account invests in a LAM
sponsored investment, Truvvo will deduct the value of the investment from the market value of the
Managed Account’s assets under our advisement for the purposes of calculating the advisory fee. While
Truvvo seeks to avoid “double fees” there are situations where the LAM sponsored investment
management and other fees are higher than Truvvo’s advisory fee.
Asset Class Pool Investment Management Fees
For investors that utilize Truvvo for specific asset class exposure and are not paying an advisory fee as
described above, fees are a blended management fee generally charged by each multi-manager vehicle.
As mentioned above, Managed Account Clients who already pay an advisory fee will invest in an Asset
Class Pool series that offers a management fee waiver or be credited for the Asset Class Pool management
fees they would have otherwise paid to avoid “double fees”. At this time, Truvvo does not recommend
other LAM sponsored investments or products to the Asset Class Pools.
A summary of the Asset Class Pool fees is provided below:
Asset Under Management Annual Management Fee*
First $50 million 1.00% of net asset value per annum
$50 million - $100 million 0.90%
$100 million - $150 million 0.75%
1407 Broadway Suite 448, New York, NY 10018
S T RAT E G I C ADV I CE & P L A N N I N G + IN V E S TM E N T M A N A GE M E N T + DI R E CT P R I V AT E I NVEST I NG
$150 million - $200 million 0.65%
$200 million + 0.50%
*Incremental fee based on net asset levels
The fees and expenses applicable to each Asset Class Pool are set forth in detail in each Asset Class Pool’s
offering documents. Investors should review all fees charged by Truvvo and others to fully understand the
total amount of fees to be borne by an Asset Class Pool and, indirectly, by its investors.
Asset-based fees related to our Asset Class Pools are billed and deducted quarterly at the end of the
calendar quarter (i.e., in arrears). Fees charged by the Asset Class Pools are generally not negotiable but
may be negotiated in special circumstances. The Firm may choose to reduce fees charged to investors in
these pools.
Direct Private Investment Vehicles
As discussed above, Direct Private Investment Vehicles are created on case-by-case basis, and the fee
arrangements established for such vehicles will vary. In general, Direct Private Investment Vehicles pay
management fees, calculated and paid quarterly in advance, and carried interest compensation to Truvvo
or affiliate general partners. The amount and terms of the management fees and carried interest (as
applicable) compensation charged to each fund are determined through negotiations with the investors of
the Direct Private Investment Vehicles at each Direct Private Investment Vehicle’s inception under the
terms of their limited partnership agreements, investment advisory agreements or other similar
documents.
The Firm or affiliates may choose to reduce or waive management and carried interest fees for certain
investors such as employees, affiliates of the general partner, the management team of the underlying
...