The fee structure for Y H & C Investments is based on the initial capital invested. Y H & C uses a tiered approach to fees: as more capital is invested the fees that are charged become lower.
The fee structure for Y H & C Investments is based on the initial capital invested. Y H& C uses a tiered approach to fees, as more capital is invested the fees that are charged become lower. All fees are charged at the end of each quarter. Each time more capital is added, the fee structure applies. All fees are subject to negotiation, depending on the client tenure and relationship with Yale Bock, as well as the amount of capital that is deposited with Y H & C Investments. Clients are notified by email and billed for fees incurred, and clients must agree to the fee prior to the capital being withdrawn from the clients account. Fees are billed quarterly. Clients will pay brokerage and other fees – on brokerage practices. The fee structure is as follows:
- From 0- $500,000, Y H & C charges 1% of assets managed. For example, if a client deposited $100,000, the yearly fee would be $1,000.00 The $1,000 fee is broken up into charges of $250.00 per quarter. The $250.00 is deducted from the Ameritrade brokerage account on the last day of each quarter (March 31, 2008, June 30, 2008. September 30, 2008, and December 31, 2008).
- From $500,000- $2,500,000, YH & C charges 3/4 of 1% of all assets managed, or 75 basis points (1/100 of 1% is a basis point). For example, if a client deposited $1,000,000, the yearly fee would be $7,500. The $7,500 is broken up into charges of $1,875 per quarter. The $1,875 is deducted from the Ameritrade brokerage account on the last day of each quarter (March 31, 2008, June 30, 2008. September 30, 2008, and December 31, 2008).
- From $2,500,001> Y H & C charges .50 of 1% of all assets managed, or .50 basis points. For example, if a client deposited $3,000,000, the yearly fee would be $15,000. The $15,000 is broken up into charges of $3,750 per quarter. The $3,750 is deducted from the Ameritrade brokerage account on the last day of each quarter (March 31, 2008, June 30, 2008. September 30, 2008, and December 31, 2008).
- Accounts that are transferred into Ameritrade from another custodian, whatever the market value of the assets that comes in become the beginning capital base.
- In most cases, multiple accounts that are managed are combined and the fee for the client is determined by total assets, not for each account. The reason for this is to concentrate on the performance of the total number of assets, not on specific accounts. There are specific instances where one account of multiple accounts will be charged fees, and the others are not as an account may have substantially outperformed, and the other accounts did not. In these instances where a specific account is charged, clients are notified in advance and clients will agree to this outcome before any billing takes place.
- Accounts that do not have positive dollar returns for the quarter are not charged an applicable quarterly fee, which means Y H & C must have positive capital appreciation of the total assets for the client, as compared to the initial capital transferred to Y H & C Investments or there is no charge for the client. For some clients, it also means not charging fees until the client has returned to the initial cost basis of the total assets being managed. Y H & C Investments does not charge a separate performance-based fee.
- Return= (Total Assets At the End of the Present Quarter- Any capital contribution)/ (Total Assets Contributed)
- Assets transferred during a month (not on the first day) will be considered under management at the start of the next month, or on previously agreed upon date, or on the first day the assets are under the discretion of Y H & C Investments. For example, if assets get transferred to TD on May 15, 2008, the official date calculations for fees start will be June 1, 2008. Assets are not considered under management the day an account is requested to be closed.
- Under some circumstances, a fixed yearly fee for managing clients assets can be arranged. For example, if a client has $1,000,000 in assets, a yearly fee can be applied and broken up into quarterly billings. Under both the fixed or asset quantity-based fee structure, Y H & C Investments fees will not exceed 3% of total assets under management per annum. Lower fees may be available for comparable services may be available from other sources.
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