Fees and Compensation
Clients are billed in accordance with terms specified in the client agreement(s). Please see the
Performance Based Fees and Side-by-Side Management section below for additional information
with respect to fees.
Retail Wealth Management
All clients with Retail Wealth Management Program accounts that are opened effective February
27, 2004 and later pay the following annual Assets Under Management Fees, which are payable
quarterly in advance based on the market value of the client’s account on the last business day of
the previous calendar quarter.
1.80% if assets under management are up to $500,000
1.65% if assets under management are between $500,000 and $1,000,000
1.50% if assets under management are between $1,000,000 and $1,500,000
1.45% if assets under management are between $1,500,000 and $2,000,000
1.35% if assets under management are between $2,000,000 and $2,500,000
1.30% if assets under management are between $2,500,000 and $3,000,000
1.25% if assets under management are between $3,000,000 and $3,500,000
1.20% if assets under management are between $3,500,000 and $4,000,000
1.15% if assets under management are between $4,000,000 and $4,500,000
1.10% if assets under management are between $4,500,000 and $5,000,000
1.05% if assets under management are between $5,000,000 and $10,000,000
1.00% if assets under management are greater than $10,000,000
Retail Wealth Management accounts that were opened prior to February 27, 2004 are subject to
more favorable fee arrangements.
Retail Wealth Management Program clients that have their assets held at Goldman Sachs
Custody Solutions, formerly FOLIOfn Investments, Inc., an online discount broker-dealer
(“Folio”); pay Adviser an annual, fixed, non-refundable account administration fee of $495 per
client account, for an account with over $50,000. For accounts between $20,000 and $50,000 in
assets, the fee is $295 per client account; for client accounts under $20,000, the fee is zero. If
client initiates non-window trades in its Folio account, incurs margin debt, or executes other
selected transactions, the client may be charged a fee by Folio. Clients that have their assets held
at Folio are entitled to have up to twenty different strategies in their account. If the client holds
more than ten portfolios, the client pays a non-refundable fee of $50 per year to Folio for each
additional account. For the first $500,000 in client assets, Folio receives 20 basis points of
management fees charged to clients custodied at Folio, which is non- refundable to the Adviser
and/or the client. For client assets above $500,000, Folio receives 18 basis points of management
fees charged to clients custodied at Folio, which is non-refundable to the Adviser and/or the client.
A client agreement may be canceled at any time, by either party, for any reason upon receipt of 30
days written notice. Upon termination of any account, any prepaid, unearned fees will be promptly
refunded, and any earned, unpaid fees will be due and payable. Unless a client requests otherwise
in writing, the Adviser’s general policy is to liquidate terminating accounts.
Clients with assets consisting of individual fixed-income securities such as treasury, corporate and
municipal bonds pay the following annual Assets Under Management Fees, which are payable
quarterly in advance based on the market value of the client’s account on the last business day of
the previous calendar quarter.
0.65% if assets under management are between $500,000 and $2,000,000
0.50% if assets under management are between $2,000,000 and $4,000,000
0.40% if assets under management are between $4,000,000 and $6,000,000
0.25% if assets under management are greater than $6,000,000
ZIM Retail Wealth Management program clients invested in a ZIM sponsored wrap program
should refer to the Services, Fees and Compensation section in Appendix 1 of Form ADV Part 2A
for a description of ZIM Wrap Program fees.
Global Tactical Strategy (Retail)
Clients invested in the Global Tactical Strategy pay the following annual Assets Under
Management Fees, which are payable quarterly in advance based on the market value of the
client’s account on the last business day of the previous calendar quarter. Clients invested in the
strategy are responsible for all trading cost associated with an investment in the strategy.
0.95% for assets $0 to $500,000
0.90% for assets $500,000 to $1,000,000
0.80% for assets $1,000,000 to $4,000,000
0.70% for assets over $4,000,000
Premier Select Strategy (Retail)
Clients invested in the Premier Select Strategy pay the following annual Assets Under
Management Fees, which are payable quarterly in advance based on the market value of the
client’s account on the last business day of the previous calendar quarter.
1.50% for all assets under management
Zacks Strategies Direct
Client in the Strategies Direct program pay the following annual Assets Under Management Fees,
which are deducted quarterly based on the assets under management in the client’s account at the
end of each calendar quarter.
0.99% for assets $0 to $500,000
0.90% for assets $500,000 to $1,000,000
0.80% for assets $1,000,000 to $2,000,000
0.70% for assets $2,000,000 to $5,000,000
0.60% for assets over $5,000,000
Clients that engage ZIM through the Zacks Strategies Direct portion of the Retail Wealth
Management Program are commonly subject to a lower fee schedule because such clients engage
ZIM directly rather than using a ZIM Investment Consultant or RVP. Further, the Zacks Strategies
Direct program is not a ZIM Wrap Program; clients are responsible for paying trading and custodial
costs directly to the broker/custodian.
ZIM fees may be negotiable. To the extent that clients’ accounts are invested in mutual funds or
exchange-traded funds (“ETFs”), these funds charge a separate layer of management, trading, and
administrative expenses.
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