Fees and Compensation
Managed Discretionary Asset Fees
RCA bases its annual investment management fee for managed discretionary assets upon a percentage (%) of the market value of the portfolio's assets and the specific types of investment management services provided in the applicable program. RCA’s annual investment management fees for discretionary assets under management in all three programs are as follows:
Portfolio Assets Under Management (AUM) Percent of Assets
• AUM up to $2,500,000 is charged 1.00% annually
• AUM of $2,500,000 to $5,000,000 is charged 0.80% annually
• AUM over $5,000,000 is charged 0.60% annually
Managed Non-Discretionary Asset Fees
The annual investment management fee charged on Managed Non-Discretionary Assets is 0.20%. This fee shall be prorated and paid quarterly, in arrears, based upon the market value of the managed non-discretionary assets on the last business day of the previous quarter.
RCA, in its sole discretion, may reduce its investment management fee based upon certain factors, like anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to be managed, related accounts, account composition, negotiations with the client and other considerations.
Billing of Fees
RCA’s investment management fees are billed quarterly, in arrears (meaning that we invoice clients after the three-month billing period has ended) based upon the market value of the assets on the last business day of the previous quarter. RCA clients generally provide their written consent in advance to direct debiting of investment management fees from their custodial account. RCA's Investment Advisory Agreement and the custodial/ clearing agreement authorize the custodian to debit the client account for the amount of RCA's investment management fee, and to directly remit that investment management fee to RCA in compliance with regulatory procedures. In the limited event that RCA bills the client directly, payment in full is expected upon presentation of the invoice.