Managed Assets

Boston Wealth Management, LLC is a State Registered Investment Advisory firm since April 28, 2006

bwm@bostonwealth.net

Adviser Compensation.

            (a) The Adviser’s annual fee for investment management services provided under this Agreement shall be based on the market value of the Assets under management and be calculated as follows:

High-net worth (Qualified) clients may be charged a combination of an annual asset management fee and performance-based incentive fee as follows:

 Assets Under Management            Annual Fee                                  Quarterly Fee

Under $500,000                          220 basis points (2.20%)             55.00 basis points (0.55%)

$500,001-$1,000,000                165 basis points  (1.65%)             41.25 basis points (0.4125%)

$1,000,001-$2,000,000            138 basis points  (1.38%)             34.50 basis points (0.3450%)

$2,000,001-$5,000,000            83 basis points  (0.83%)              20.75 basis points (0.2075%)

 $5,000,001+                                   55 basis points (0.55%)              13.75 basis points (0.1375%)

The above fees are based upon the client’s assets under management and are paid in advance at the end of every quarter for the next quarter’s management fee.  Fees are based on the fair market value of the portfolio under management at the closing date of each quarter (March 31, June 30, September 30, December 31) after all fees and commissions.  In the event that the client terminates the managed account between quarterly billing cycles, the client will receive a pro-rata refund based on the remaining days in the quarter. 

In addition to the annual investment management fee, Adviser shall annually charge a 20% performance fee for all profits exceeding the Standard & Poors (“S&P”) 500 Index which have been accrued as of December 31st of each year.  In the event that the client terminates the managed account before the end of the year, the client is billed a 20% performance fee on assets under management for all profits accrued year to date. All performance-based fees will comply with Section 205 of the Investment Advisers Act of 1940 and Rule 205-3 thereunder as applicable. 

Clients who are not qualified as Qualified Investors or Qualified Investors: Clients who are not qualified investors or for qualified investors who choose not to be charged a performance fee, the following fee schedule shall be applied:

Assets Under Management     Annual Fee                                  Quarterly Fee

Under $500,000                          300 basis points (3.00%)              75.00 basis points (0.75%)

$500,001-$1,000,000             225 basis points  (2.25%)              56.25 basis points (0.5625%)

$1,000,001-$2,000,000         188 basis points  (1.88%)              47.00 basis points (0.47%)

$2,000,001-$5,000,000         113 basis points  (1.13%)              28.25 basis points (0.2825%)

$5,000,001+                                    75 basis points (0.75%)              18.75 basis points (0.1875%)

On December 31st or thereabout, all qualified accounts will be reviewed to see whether the client has become non-qualified account based on Section 205 of the Investment Advisers Act.  If qualified clients are later deemed to be non-qualified clients, they will no longer be charged a performance fee.

Adviser’s fee schedule does not include the following separately billed fees, which adviser does not receive any part of: mutual fund expenses, trading and custodial costs.  These fees will be separately charged by the relevant parties and borne by the client.  Additionally adviser’s fee does not include fees for day trading which will be billed at $500 for 20 hours of day trading.

 The term “qualified client or “qualified investor” means:

(i) A natural person who or a company that immediately after entering into the contract has at least $750,000 under the management of the investment adviser; 

(ii) A natural person who or a company that the investment adviser entering into the contract (and any person acting on his behalf) reasonably believes, immediately prior to entering into the contract, either: 
(A) Has a net worth (together, in the case of a natural person, with assets held jointly with a spouse) of more than $1,500,000 at the time the contract is entered into; or 
(B) Is a qualified purchaser as defined in section 2(a)(51)(A) of the Investment Company Act of 1940 [15 U.S.C. 80a-2(a)(51)(A)] at the time the contract is entered into; or

 

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