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We 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 assets.

 

 

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
Interlake defines 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.

Marginal Fees
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 account).

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.

Generally, 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.

 

Table 1 - Interlake Allocation Fees
Household Assets Annual Fee
Up to $249,999.99 1.00%
$250,000-$499,999.99 0.75%
$500,000 and up 0.50%

 

Table 2 - Interlake Alpha Fees
Household Assets Annual Fee
Up to $249,999.99 1.50%
$250,000-$999,999.99 1.25%
$1,000,000-$1,999,999.99 1.00%
$2,000,000-$4,999,999.99 0.75%
$5,000,000 and up 0.50%