ITEM 5 Fees and Compensation
ANNUAL FEES FOR ADVISORY SERVICES
Virtus is compensated for providing Asset Management services by charging an asset management fee of
up to 1.0%. The asset management fee is based on the total assets under management and may be
negotiable.
The fees charged for financial planning services are project-driven. The fees are negotiable and vary
depending on the complexity of the process undertaken, the types of issues addressed, the scope of
services provided, and the frequency with which the services are rendered. We charge an annual fee of
up to 1.0% of the client’s net worth or up to 1.50% of the transaction amount for business-related planning
projects. The exact fee will be agreed upon before entering into the Investment Advisory Agreement you
sign.
We may waive the agreed-upon financial planning fees if you engage our asset management services.
When Virtus directs clients to third-party money managers, it will be compensated via a fixed fee payable
monthly or quarterly in advance or arrears. This relationship will be disclosed in each contract between
the client and each third-party adviser. The fees shared will not exceed any limit imposed by any
regulatory agency. The exact fee will be disclosed in the Investment Advisory Agreement you sign. Virtus
is compensated for providing Fund Investment Management services by charging an assets under
management fee of up to 1.25%. The asset management fee is based on the total assets under
management and may be negotiable.
These fees are negotiable depending on the client’s needs and the complexity of the account.
FEE BILLING & PAYMENT
Asset management fees are invoiced and billed directly to you either monthly,quarterly, semiannually and
annually in arrears. Payments are due on the first day of the calendar month or quarter, semiannually or
annually and are based on the daily average. The fee for the subsequent month or quarter, semiannually
or annuallyis billed and payable within ten (10) days after the end of either the month, quarter,
semiannually or annually. The fee billing will be pre-determined in writing in the investment advisory
agreement that is executed by you and Virtus. We will deduct our asset management fee only when in
receipt of your written authorization by executing an investment advisory agreement permitting the fees
to be paid directly from your account. In regards to curriencies the account will be charged in the curriency
that it is holding to avoid any foreign currency risk. We will send a copy of your invoice to the custodian
at the same time that we send a copy to you. The qualified custodian will deliver an account statement to
you at least quarterly, which will show all disbursements from your account. We urge you to review all
statements for accuracy.
Financial planning and consulting fees will be assessed as an annual fee, payable monthly, quarterly,
semiannually or annually in advance. In no case will Virtus require a fee of $1200 or more to be paid 6
months or more in advance. Financial planning and consulting fees are paid via credit card, check or wire
transfer. A portion of the transaction-based planning fee may be charged in advance in certain instances.
In TPMM accounts, Virtus typically charges a fixed fee payable monthly or quarterly in arrears or in
advance. The fee is dependent on the number of managers and custodians used by the client. The third-
party adviser deducts the advisory fee from the client’s account and then will forward a portion of the fee
to our firm. We urge our clients to refer to the selected TPMM’s disclosure documents for exact fees and
expenses charged by each such TPMM, as well as minimum account requirements, refund, and
termination provisions. A complete description of each program can be found in disclosure materials
prepared by the TPMM, which we will provide to the client at the time we recommend the program.
You are responsible for all third-party fees (i.e., custodian fees, mutual fund fees, transaction fees, etc.).
These fees are separate and distinct from the fees and expenses charged by Virtus.
TERMINATION OF AGREEMENT
Either party may terminate the investment management agreement by providing 30-day advance written
notice. Upon termination of any account or service, any prepaid, unearned fees will be promptly refunded
on a pro-rata basis, and any earned, unpaid fees will be due and payable up to and including the effective
date of termination.
Notwithstanding the above, if we do not deliver the appropriate disclosure statement to you at least 48
hours prior to you entering into any written or oral advisory contract with this us, then you have the right
to terminate the contract without penalty within five (5) business days after entering into the contract.
OTHER EXPENSES AND FEES
The fees discussed above include payment solely for our asset management and financial planning
services provided by us and are separate to certain fees or charges that are imposed by third parties in
connection with investments made on your behalf for your account. Third-party fees may include
markdowns, markups, brokerage commissions, other transaction costs, and/or custodial fees.
Also, all fees paid to us for asset management services are separate from the expenses charged by
exchange-traded funds and mutual funds to their shareholders. These fees and expenses will be used to
pay management fees for the funds, other fund expenses, account administration, and a possible
distribution fee. Exchanged traded funds and mutual funds can be invested in directly by you without our
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