believe that high-quality investment guidance is itself a wise
investment. In an important White Paper—“The Logic of Paying for
Good Professional Help”—we explain the benefits of a
partnership with Interlake in the context of our fee structure. As
you’ll see, we think we offer one of the best value propositions
in the industry.
The most important reason to partner with
Interlake is the exceptional quality of our investment disciplines.
We hope the fairness, simplicity, and transparency of our fees
also encourage you to work with us and we hope they reflect our
high regard for our clients’ hard-earned
Fees will be calculated and assessed in accordance
with the schedules presented in Tables 1 and 2. These marginal fees
do not include commissions, which are payable by the client. Those
commissions are currently $9.95 per trade for households with more
than $500,000 under our management (or any household that chooses
to receive trade confirmations and statements by e-mail) and $15.00
per trade for households with less than $500,000 under our management.
Note that one-fourth of the applicable annual fee will be billed
each quarter. Please see the discussion below concerning minimum
and maximum fees.
Calculation of Household Assets
a household as any number of people sharing a residence or members
of the same nuclear family regardless of residence. For households
with multiple accounts (e.g., two IRAs and a joint account), the
applicable fee will be calculated on the basis of total household
assets, with that fee applied to each account.
Given the different
fees and thresholds for our Alpha and Allocation portfolios, household
assets in one category do not affect fees assessed in the other.
Interlake’s fees are marginal, meaning they apply to the assets
in each designated range. For a household with $500,000 in Interlake
Allocation assets, the first $249,999.99 would be subject to a fee
of 1%, with the next $250,000.01 subject to a fee of 0.75%. Note
that clients may request that total household fees be paid from any
single account or subset of household accounts (e.g., from a taxable
Annual Fee Minimums and Maximums
Rather than impose arbitrary asset minimums, we have established
minimum annual household fees: $1,000 for the Interlake
Allocation Portfolios and $2,500 for the Interlake Alpha Portfolios.
Due to attractive economies of scale in our Allocation program,
the annual fee for that discipline is capped at $10,000 per household.
we recommend account minimums
of roughly $50,000 for our Allocation Portfolios and $150,000
for our Alpha Portfolios.
Negotiability of Fees
To ensure equal treatment of all clients, Interlake’s fees
are generally not negotiable.