ITEM 5 – FEES AND COMPENSATION
WIC's sole means of compensation are investment management, family office, advisory, and
consulting fees. We receive no fees or compensation in connection with the purchase or sale of
securities or other investment products on behalf of our clients, including client referral fees,
brokerage commissions, asset-based sales charges, or service fees from the sale of mutual funds.
Our written engagement agreements with our clients establish the specific way we charge fees.
Investment Management Fees. We charge investment management fees for investment portfolios
that we manage for our clients. Our management fees are:
• Based on the market value of client assets under management;
• Calculated and paid on a monthly or quarterly basis, in arrears, as of the end of
each calendar month or quarter;
• Prorated for any assets that we manage for less than an entire calendar month or
quarter, and
• Deducted from client accounts monthly or quarterly.
We do not bill clients in advance for our investment management, family office, advisory, or
consulting fees, nor do we accept advance payment of fees. All clients receive an accounting of
our investment management fees with quarterly or monthly reports and custodial statements.
Our investment management fee schedule for separately managed portfolios invested in our Core
Bond Strategy, Core Equity Strategy, Small Cap Value Strategy (SCV), Cash Management Treasury
Strategy, and portfolios that contain a mixture of our equity and bond strategies are as follows:
Bond Only Portfolio Fees. Our minimum bond portfolio account size is generally $2 million.
Our standard annual fee schedule for bond portfolios is computed at 0.55% of the first $2
million of portfolio value, plus 0.45% of the next $1 million of portfolio value, plus 0.40%
of the balance of the bond portfolio that exceeds $3 million.
Core Equity and SCV Equity Strategy and Stock and Bond Balanced Portfolio Fees. Our
minimum account size for a stock portfolio or a combination of stocks and bonds is
generally $2 million. Our standard annual fee schedule for these portfolios is 1% of the first
$5 million and 0.50% on that portion over $5 million. In addition, clients before January 1,
2025, with limited exceptions, pay legacy fee rates that differ from the above.
Cash Management Treasury Strategy. We charge a flat fee of 0.20% of the portfolio value
for separately managed portfolios invested in Treasuries or other money market securities.
These fees do not include any investment(s) in WIC’s limited partnership funds. The fee rate for
those funds is set in a separate fee schedule in the fund prospectus, detailed below.
WIC is the sole general partner in two private investment funds organized as limited partnerships
under Georgia law. The investment management fee schedule for the two limited partnerships
managed by WIC is as follows:
WIC Managed Volatility and Income Fund, L.P. and WIC Managed Volatility and Income
Fund QP, L.P. Fees. The general partner (WIC) receives a management fee from each
limited partner based on a percentage of the value of each limited partner’s capital
account per the following schedule: 1% of the first $2 million, 0.80% of the next $1 million,
and 0.65% of the limited partner’s capital account balance that exceeds $3 million. This
fee schedule also applies to separately managed portfolios invested in the Managed
Volatility and Income Strategy unless the fee is negotiated based on portfolio market value.
Our investment management fees may be negotiable for portfolios whose values exceed $10
million.
WIC previously served as investment manager to the WIC Value Fund, L.P. and the WIC Small Cap
Value Fund, L.P. Those funds have been dissolved, and WIC no longer charges fees associated with
those two private funds. WIC continues to manage the assets in separately managed client
portfolios and charges management fees under the Core Equity and SCV Equity Strategy and Stock
and Bond Balanced Portfolio Fee Schedule.
Family Office, Advisory, and Consulting Fees. WIC provides family office, advisory, and consulting
services for clients whose investment assets we do not directly manage. The family office,
advisory, and consulting fees we charge for such services, and the basis upon which the fees are
billed and paid, are negotiated with each client and generally range between 0.05%-1.0%. The fee
is based on the nature, scope, complexity, and number of hours involved. Client facts,
circumstances, and needs are considered in determining a negotiated fee schedule, and we retain
discretion to waive certain fees on a client-by-client basis. We provide other financial advisory
services, including consulting and general wealth management and estate planning services, on
an episodic basis as requested or needed by clients that are not part of WIC’s Family Office
agreement. WIC does not prepare any accounting or legal documents. Any fees incurred for such
professional services are the client’s responsibility.
Sub-Advisory Fees. We occasionally share management or advisory responsibilities with other
advisors, consultants, or financial institutions. This is referred to as a “sub-advisor” relationship. If
another advisor, consultant, or financial institution unrelated to WIC refers a client to us or that
person or entity is responsible for designated advisory or management responsibilities (such as
investment asset allocation, a management supervisory role, or client relationship management),
the WIC management fee may be shared with that person or entity to reflect such shared
responsibility. The costs to our clients of any such sub-advisory arrangement are not increased
beyond our customary fee schedule, and the arrangement is always disclosed to our clients and
approved by them in advance.
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