Mountebank is compensated for the services rendered in connection with the management of client funds by The Management Fee Program. The Management Fee Program consists of three components:
A) Annual Account Maintenance Fee of $500;
B) The Management Fee. The Management Fee is a monthly fee of 0.1% (one tenth of one percent) of the net asset value of the account on December 31, of the previous year. Thus, 0.1% of the December 31, net asset value is deducted from the account in each of the subsequent twelve months, without regard to fluctuations during the year. The amount of the monthly deduction will be reset each January, and continue for the subsequent 12 months. On an annual basis, assuming a net asset value in the account of $1,000,000, on December 31, the monthly fee would be $1,000, or $12,000 per year.
New accounts that are opened during the year would have the 0.1% monthly fee computed on the net asset value as of the first monthly closing, with deductions continuing monthly through December 31. For example, if $1,000,000 is deposited on July 1, and grows to $1,001,000 at the close of July, the monthly fee for August through December would be $1,001 per month.
The Management Fee drops to 0.075%/month on any amount above $1,500,000, when the total of all accounts in a relationship exceeds $1,500,000.
C) Consulting Fees and reimbursement for out of pocket expenses incurred for providing services at the client’s request outside of the account management role described herein (hourly consulting fee of $175/hour, and cost of travel to client’s attorney or broker’s office to discuss matters requested by client, etc.). Your approval will be obtained in advance before any counseling fees or reimbursable expenses are incurred.
Brokerage Commissions and Charges:
Fees associated with the Management Fee Program, do not include brokerage commissions and related SEC and broker fees. Brokerage commissions and related SEC and broker fees are charged to the account with purchase or sale of each security. The broker is selected based on reasonable commission rates, excellent trading execution history, and other benefits to you, the client. There is no compensation of any kind from the broker/custodian to Mountebank.
On occasion Mountebank may pay referral fees to individuals or entities for client referrals. All clients will be notified in writing as to the existence, amount and nature of any referral fees as well as the name of the recipient to which any referral fees are paid.
Other Comments on Fees and Commissions:
One hundred percent of the Management Fee, Account Maintenance Fee, Consulting Fees, and expense reimbursement, if any, go to Mountebank, as compensation for services provided and reimbursement for expenditures. The amount of the Management Fee and services provided are negotiable. The Management Fee, and Account Maintenance Fee are earned when deducted, and the Consulting Fees are earned as rendered. None of the fees are refundable.