Fees and commissions for your IB Asset Management investments

If you decide to invest with IB Asset Management, you will be charged:

• Management fees by IB Asset Management - based on the amount of your investments, and
• Commissions by our affiliated broker-dealer Interactive Brokers LLC, the broker-dealer for all transactions in your IB Asset Management account.

Additional information on IB Asset Management’s management fees, Interactive Brokers’ commissions and other fees that may apply to transactions in your IB Asset Management account may be found in the Investment Management Agreement and Informational Brochure on the Forms & Agreements page.

IB Asset Management’s management fees

Depending on the portfolio, IB Asset Management charges you the following management fees:

• Smart Beta portfolios (managed by IB Asset Management): An annual asset-based management fee of 0.08% of the gross market value of investments.
• Other portfolios (managed by third-party Portfolio Managers): An annual asset-based management fee ranging between 0.25% and 1.5% of the gross market value of investments.
• Performance fee portfolios for qualified clients (managed by third-party Portfolio Managers): An annual asset-based management fee ranging between 0.25% and 1.5% of the gross market value of investments plus a performance fee ranging between 2% and 12% of the investments’ net positive performance. In order to qualify to invest in one of our performance fee portfolios, you will need to have either $1,000,000 under management at IB Asset Management or a total net worth of $2,100,000 (not including your primary residence).

Annual asset-based management fees are computed daily and payable monthly in arrears, i.e., after the end of the month when incurred. If applicable, performance fees are calculated and payable quarterly in arrears, i.e., after the end of the quarter when incurred. Additional detail on fee computation may be found in the Investment Management Agreement on the Forms & Agreements page.

Commissions for transactions in your IB Asset Management account

• All IB Asset Management transactions are executed by Interactive Brokers LLC - one of the lowest cost brokers.
• Brokerage commissions are in addition to IB Asset Management’s asset management fees.
• Interactive Brokers charges IB Asset Management clients commissions based on IB’s tiered commissions structure for stock trades and IB’s standard options commissions structure for options trades.
• Interactive Brokers requires certain types of brokerage accounts to generate a minimum level of commissions each month. Therefore, in addition to applicable commissions, whenever the overall monthly commissions paid by all IB Asset Management client accounts do not amount to at least $10 in commissions per account per month, Interactive Brokers LLC will collectively charge IB Asset Management clients the difference between the actual commissions charged and the overall $10 minimum due for all IB Asset Management clients, determined on a pro rata basis (based on the amount by which each IB Asset Management client account is below the $10 minimum.)
• Additional information on applicable IB commissions can be found here.
• IB Asset Management never marks up any transaction costs.