Effective Rate Example
(for illustrative purposes)
The account is charged an Effective Advisory Fee rate, calculated by multiplying the applicable fee to the reconciled value of assets in each tier as defined in the schedule.
Example: $350,000 Account
Tier 1 = $99,999.00 x 1.35% = $1,349.99
Tier 2 = $250,000.99 x 1.20% = $3,000.01
- Add together for the resulting fees: $1,349.99 + $3,000.01 = $4,350.
- Divide the sum by the total value of assets of the Account: $4,350 / $350,000 = 1.24%, which is the Effective Advisor Fee Rate.
Note: Manager Fee (if applicable) is billed to the Account in addition to the Advisory Fee.