Management Fees

Introductory Trial Period

We waive all advisory fees for the initial two (2) calendar quarters following the commencement of services under this agreement. The waiver period will begin on the first day the account is funded and investment management has commenced. After the conclusion of this two-quarter trial period, the standard advisory fee as described below will apply.

This fee waiver is not tied to the performance of the client’s account and is not a performance-based fee arrangement. We may, at our sole discretion, extend, modify, or terminate the fee waiver policy for future clients.

Standard Advisory Fee

The standard advisory fee of Broken Investing is 2% of assets under management (AUM) per quarter, billed in arrears (billed for the previous quarter managed). However, as a courtesy and at our sole discretion, we may waive the fee in any quarter where the client’s account shows a net loss in that quarter. This waiver is not guaranteed and does not constitute a performance-based fee arrangement. 

Fees are calculated and deducted quarterly in arrears based on the account’s average daily balance during the quarter. Fees are typically assessed within the first 5 business days following the end of each calendar quarter (on or shortly after January 1, April 1, July 1, and October 1).

Please keep in mind that short-term capital gains taxes must be paid on profits according to the client’s tax bracket. These gains are taxed as ordinary income. Tax bracket information can be found at the link below, and you are encouraged to consult with a professional tax consultant: 

https://www.irs.gov/filing/federal-income-tax-rates-and-brackets