Guiding Principles behind Innovative Fee Structure

Fees should be appropriate for all:
The Avenue Total Return Equity Portfolio has a management fee of 1.5% of assets under management.
Note:  For Equity Portfolios under $500,000, the management fee
is 2.0% of assets under management.

Fees should be reduced if the investment manager
does not make you money:
If our client’s do not achieve an absolute return over the calendar year, the management fee is cut in half or reduced from 1.5% to 0.75%.

Fees should reward an investment manager that
does make you money:
If our client’s annual return exceeds 10% over the calendar year,
in addition to the management fee payable, Avenue Investment Management also will receive a performance fee equal to 10% of the excess return for that calendar year.  Note however, that this performance fee is also capped to a maximum of 1%.