Item 5 Fees and Compensation
Clients in the Program pay a MPS Program Fee which includes fees charged by UAIM,
Envestnet, Managers or Sub-Manager(s) and any third-party service provider. Depending on
the MPS Program(s) selected by the client, the MPS Program Fee also includes investment
management services comprised of client profiling, strategic asset allocation, style allocation,
research and evaluation of asset managers, ongoing monitoring of manager and account
performance, asset manager hiring and termination, account rebalancing, account reporting
and Envestnet’s other operational and administrative services.
MPS Program Fees charged are calculated as an annual percentage of assets based on the
market value of the account at the end of the quarter. MPS Program Fees are charged on a
calendar quarter basis in advance and prorated to the end of the quarter upon inception of
the account. The level of the MPS Program Fee will vary with the amount of assets under
management, and the particular investment styles and investment options chosen or
recommended. Clients may receive comparable services from other sources for fees that are
lower or higher than those that we charge.
If there is insufficient cash in the Accounts at the time the MPS Program Fee is to be debited
from the Accounts, the Client understands and acknowledges that UAIM, Platform Manager
or Sub-Managers may sell an amount of MPS Program Assets to generate sufficient cash to
pay the Program Fee. This may create a taxable gain or tax loss for the Client. If MPS Program
Assets are illiquid and we, Platform Manager or Sub-Manager determine that the sale of MPS
Program Assets to pay the MPS Program Fee is not feasible, Client will be invoiced for the MPS
Program Fee for the quarter. For reporting only accounts or any other account that
necessitates it, another designated Client account will be billed for the MPS Program Fee. The
Client agrees to pay this invoice within ten (10) days of receipt. If this Agreement is terminated
and all MPS Program Assets are withdrawn from the MPS Program prior to the end of a
quarter, the pro rata portion of the MPS Program Fee will be reimbursed to Client.
The standard fee schedule for the MPS Program offerings is as follows but may be negotiable
in individual cases depending on the MPS Program and with approval from the Manager,
Envestnet and UAIM:
5.1 Separately Managed Accounts Program (“SMA Program”)
The SMA Program utilizes Envestnet’s manager due diligence and assistance in evaluating
separate account managers, providing access to a range of managers and investment
disciplines. The SMA Program also includes professional money management, manager due
diligence, performance reporting, and associated services and support (such as trading,
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reconciliation, fee calculation, etc.). Sponsor Fee is representative and may vary by manager.
Maximum Program Fee will not be exceeded in the SMA Program.
Separately Managed Accounts Program (“SMA Program”) Fee Schedule*
SEPARATELY
MANAGED Equity and Accounts Including
Pricing Tiers Fixed Income
ACCOUNT Balanced MUTUAL FUNDS
PROGRAM*
First $250,000 0.49% 0.44% 0.44%
Next $250,000 0.48% 0.43% 0.43%
Next $500,000 0.45% 0.40% 0.40%
Platform Fees Next $1,000,000 0.35% 0.30% 0.30%
Next $3,000,000 0.26% 0.21% 0.21%
Above 0.22% 0.17% 0.17%
$5,000,000
* SMA manager charges range from 25 to 120bps
5.2 Mutual Fund and ETF Strategist Portfolio Program
The Mutual Fund and ETF Strategist Program, in association with the technology provided by
Envestnet Asset Management, provides Model Portfolios. Features in this program include
professional money management, performance reporting, and associated services and
support (such as trading, reconciliation, fee calculation, etc.).
Mutual Fund and ETF Strategist Program Fee Schedule**
MUTUAL FUND AND ETF
Pricing Tiers Platform Fees
STRATEGIST PROGRAM**
First $250,000 0.39%
Next $250,000 0.38%
Next $500,000 0.35%
Platform fees
Next $1,000,000 0.30%
Next $3,000,000 0.26%
Above $5,000,000 0.21%
** MF/ETF Third Party Strategists charges range from 5 to 45bps
5.3 Advisor as Portfolio Manager Program
The Advisor as Portfolio Manager Program (also referred to as “Rep as Portfolio Manager”
or “Rep as PM”) provides Investment Advisor Representatives with portfolio modeling and
diagnostic tools to enable them to act as portfolio managers and manage model portfolios
for their clients. This Program includes Performance Reporting and an on-line, web-based
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proposal generator which includes a Risk Tolerance Questionnaire and recommended Asset
Allocation. Other tools include rebalancing, drift tolerance controls, and system-generated
alerts related to style drift and rebalancing. Also included in this offering is fee-based billing.
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