Item 5 Fees and Compensation
Advisory Fees
UIM’s compensation is negotiable and varies, but typically it charges management fees that
are based on a percentage of the market value of each client’s account, according to the fee
schedule below, and subject to a $10,000 minimum annual management fee. All assets in the
account are included in the fee assessment unless specifically excluded in writing. The
management fee is billed quarterly in arrears and prorated for accounts established or
terminated at times other than the start of the quarter. The management fee is based on the
market value of the assets as of the last day of the quarter. Values are derived from
recognized and independent pricing sources as provided by the custodian of the client’s
account and other third parties. UIM uses third-party portfolio accounting software to
calculate client fees. The fee schedule is as follows:
For the All Cap Equity Strategy
Value of Account Assets Annual Fee Rate
On the first $5,000,000 1.00% plus
On the next $5,000,000 0.75% plus
On the next $5,000,000 0.625% plus
On market value over $15,000,000 0.50%
Minimum account size $1,000,000
Minimum annual management fee $10,000
For the Balanced Strategy Annual Fee Rate
On Account assets invested in the All Cap Equity Strategy See fee schedule above
On Account assets invested in fixed income instruments 0.50%
On Account assets held in cash or cash equivalents 0.75%
Minimum account size $1,000,000
Minimum annual management fee $10,000
Clients customarily authorize UIM to deduct its management fees directly from their
custodial accounts. This authorization is granted under the terms of the client’s signed
investment management agreement and the client’s instructions to the custodian. Clients
may also elect to pay, or have the custodian pay, UIM’s fees separately, rather than having
them deducted directly from their accounts. It is the client’s responsibility to verify the
accuracy of the fee calculation, as the custodian will not determine whether the fee is
properly calculated.
UIM does not use margin in managing a client account unless a client specifically requests it.
Mutual funds, closed-end funds and exchange traded funds incur investment advisory fees
and other operating expenses, and typically pass some or all of these expenses through to
their investors in the form of management fees. In addition, such funds may charge their
investors other fees, such as early redemption or transaction fees. Any UIM client whose
account is invested in such funds therefore pays, in addition to UIM’s management fees, the
expenses and advisory fees charged by those funds.
UIM believes that its fees are competitive with the fees charged by other investment advisers
for comparable services. However, comparable services may be available from other sources
for lower fees than those charged by UIM. UIM receives no commissions on investment
products purchased or sold for client accounts.
UIM’s clients may terminate their investment management agreements at any time, upon 30
day’s written notice. The account’s expenses and a pro-rated portion of the management fee
through the termination date are charged to the account.
Each account is responsible for its own costs and expenses, including trading costs and
expenses (such as brokerage commissions, sales credits/concessions to bond underwriters,
and clearing and settlement charges), custodial fees, transfer taxes, wire transfer and
electronic funds fees, and other fees and taxes on brokerage accounts and securities
transactions. UIM bears its own operating, general, administrative and overhead costs and
expenses, other than the expenses described above. All or part of these costs and expenses
may be paid, however, by brokerage firms at which client accounts are custodied and that
execute clients’ securities trades, as discussed in Item 12 below.