Item 5 Fees and Compensation
INDIVIDUAL PORTFOLIO MANAGEMENT PORTFOLIO MANAGEMENT
MANAGER OF MANAGERS PENSION CONSULTING
SELECTION AND MONITORING OF THIRD PARTY MONEY MANAGERS PRIVATE INVESTMENT
FUNDS
Vantage annual fees for Investment Supervisory Services are based upon a percentage of assets
under management and generally range from .05% to .5%. The annualized fee for Investment
Supervisory Services will typically be charged as a percentage of assets under management,
according to the following schedule:
Assets Under Management Fees Annual Fee Range
Employee Benefit Accounts: .05% up to .5% Individual
Accounts: .05% up to .5%
Generally, for both employee benefit and individual accounts, clients will be invoiced in arrears based
on the calendar quarter end value (market value or fair market value in the absence of market value,
plus any credit balance or minus any debit balance), of the client's account as of the last business day
of the previous quarter end. Fees may be negotiable.
** In cases where Vantage is hired as a Manager of Managers, Vantage is paid by the client, based on
the agreed upon percentage of the client's assets under management typically ranging from .05% to
.5% as outlined above. Vantage is NOT paid by the managers providing services to the managed
accounts. Clients receiving Manager of Manager supervisory services from Vantage will pay fees directly
to the independent managers retained for their account in accordance with the terms of the advisory
contract between the client and the manager. Vantage does not control the fees or the billing
arrangements of any selected asset manager. For complete descriptions of the fee arrangements
including billing practices, minimum account requirements and account termination provisions, clients
should review the manager's Firm Brochure, or other disclosure document. Fees may be negotiable.
Account Management Fees: Vantage may charge a fee for account management that is calculated
based on a set rate as determined by contract or as a percentage of the assets under management.
The Account Management Fee is calculated at an annual rate not to exceed 1%. Fees are calculated
on either a monthly or quarterly basis per agreement, and are payable, either in advance based on the
value of the account(s) as of the beginning of each billing period, or in arrears based on the value of
the account at the end of each billing period. The Account Management Fee is prorated for periods
less than a full billing cycle and adjusted to cover any additional contributions made during that period.
Incentive Fees: Managed Accounts may contract with Vantage to pay performance-based
compensation ("Incentive Fees"). The Incentive Fee is calculated based on a percentage of the net
profits of the account(s) as measured on a predetermined date mutually agreed upon with the client.
Vantage's incentive fee is typically 5% to 10% of the net profits as established in the Investment
Management Agreement. To the extent that the amount of account appreciation is less than the high
water mark, there is a loss carry forward allocation that must be recouped before Vantage is entitled to
a performance-based fee.
Under certain circumstances, Vantage's investment management services may be provided solely for
an incentive fee based compensation, advisory clients should recognize that such fee arrangements
may create an investment conflict as it creates an incentive to allocate profitable investments to such a
client thereby enabling Vantage to recognize increased compensation for management services.
Clients electing to terminate their contracts will be charged a performance-based fee based on the
performance of the account for the measuring period going back from the termination date to the date
the performance-based fee was last assessed by Vantage.
In calculating the performance-based fees, Vantage will include all income to the account including
realized and unrealized capital gains and other income credited to the account, reduced by realized
and unrealized capital losses and any appropriate expenses charged to the account. As such, Vantage
may receive increased compensation with regard to unrealized appreciation as well as unrealized
gains in the client's account. The client must understand the performance-based fee method of
compensation and its risks prior to entering into an advisory contract with Vantage which includes a
performance based fee.
PERFORMANCE-BASED FEES WILL ONLY BE CHARGED IN ACCORDANCE WITH THE
PROVISIONS OF REG. 205-3 OF THE INVESTMENT ADVISERS ACT OF 1940 AND/OR
APPLICABLE STATE REGULATIONS.
On a case-by-case basis, Vantage determines an appropriate fee structure based on the size,
complexity and investment objectives of the client's account. Fee arrangements may include a
combination of a management fee and incentive fee, or may be solely limited to a management fee or
an incentive-based fee. The terms and conditions of the fee structure are mutually agreed upon prior to
entering into an advisory agreement. Fees may be negotiable.
Clients will be invoiced performance based fees in arrears at the end of each measuring period.
Limited Negotiability of Advisory Fees: Although Vantage has established the aforementioned fee
schedule(s), we retain the discretion to negotiate alternative fees on a client-by-client basis. Client
facts, circumstances and needs will be considered in determining fee schedules. Factors include the
complexity of the client, assets to be placed under management, anticipated future additional assets;
related accounts; portfolio style, account composition, and reporting requirements, among other
factors. The specific annual fee schedule will be identified in the contract between Vantage and the
client.
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