Under this sliding fee schedule, we charge $2,500 on the first $250,000; from $250,000 – $1,000,000, we charge 0.6% on the assets; and for the amount above $1,000,000, the rate will be reduced to 0.4%. Assuming assets under management of $2,000,000, the fee calculation would be as follows: $250,000 x 1% + $750,000 x 0.6% + $1,000,000 x 0.4% = $11,000, which equates to 0.55% effective annual rate which is 40% lower than industry average.
The fee schedule above is quoted as an annual fee. We typically charge directly to clients’ accounts monthly in arrears with clients’ prior consent. Monthly fee is one twelfth of the annual rate.