New Management Fees Setting Dialog Box

All fields listed in blue are required.

1. In the Setting Name box, enter in the name for this management fees setting. (Limit 50 characters.)

2. Click the Billing Method drop-down to select which billing method to use, Tiered Fee, Flat Fee, or Performance Based Fee.

   1. If you select Tiered Fee, then enter in a maximum of six tiers in the boxes below: From $, To $, and Rate %. (If the To $ column is empty, then that tier is interpreted as the From $ to above.)

   2. If you select Performance Based Fee, follow the steps for Billing by Portfolio Performance.

3. Click the Billing By drop-down and select Total Portfolio Value or Security Type.

4. Click the Bill Rate Methodology drop-down and select Actual/Average or Actual/Actual.

5. Check the Single Rate box if you want to bill one rate based on the account's market value.

6. Click the Payment Period drop-down to select the payment period. Choose from Monthly, Quarterly, Semi-annual, Annual, or Custom Period. The default is Quarterly.

7. If you select Custom Period, click the Number of Months drop-down and select 2 or 4.

8. Click the Payment In drop-down and select Calendar Period or Rolling Period.

9. If you select Rolling Period, click the Next Period Start Month drop-down and select the month you want the rolling period to start. Then click the Next Period Start Day drop-down and select the date.

10. Click the Bill in drop-down to select if the management fee is to be billed in Arrears or in Advance. The default is in Arrears.

11. Click the Using drop-down and select End Balance or Daily Average Balance.

    1. If Arrears is selected in the Bill in field, Month End Average Balance appears as a selection in the Using field. If Advance is selected, Month End Average Balance will not appear.

    2. The Month End Average Balance calculation is correlated to the Payment Period field. For example, if the Payment Period is Quarterly, the previous three months' ending balance is used in the calculation. Likewise, if the Payment Period is Semi-annual, the previous six months' ending balance is used in the calculation.

12. Check Proration if prorated adjustment is desired.

    • Check the New Account checkbox to indicate that new accounts need to be prorated.

    • Check the Cash Flow checkbox to indicate that cash flow needs to be prorated.

    • • Select to Prorate by Amount or Rate %

      • Type in a value larger or equal to 0.00 or a rate percentage based on Cash Flows in the Mini. Flow Amount for Proration text box to indicate the minimum cash flow value that needs to be prorated.

    • In the Prorate selection box, select In flow or All flow to indicate what type of cash flow needs to be prorated.

13. In the Adjustments area:

    • Check the Rebate Transaction Commissions checkbox if you want to rebate commissions.

    • Check the Rebate Transaction "Other" Fee checkbox if you want to rebate other fees.

14. If you selected Tiered fee: In the Fee Tier area, enter  the fee ranges. You can distinguish between your advisor fee and the company fee. The total will display in the Annual Fee % box.
    
    or

If you selected Flat Fee: In the Annual Fee Amount $ box, enter the flat fee.

15. Enter a dollar amount in the Annual Minimum Fee box if you want to charge a minimum fee.

16. To include a disclosure, click the Billing Disclosure drop-down and select the name of the disclosure you want to include.

17. Check the Exclude Accrued Interest box to exclude accrued interest from the billable balance.

18. Click Save + Close. The management fees setting is saved, and you returned to the Settings spreadsheet.