Sponsor and broker-dealer compensation includes an acquisition fee of $770,625, selling commissions up to 6.0%, a dealer fee of $215,300, marketing allowance of $172,240, DD allowance of $107,650, and an annual asset management fee of $41,000.
Front-end fee composition
Acquisition Fee$0.77M3.58%
O/O Expense Reimbursement$0.37M1.73%
Dealer Fee$0.22M1.00%
Total front-end sponsor compensation$2,373,875 6.93% of acq. cost
Acquisition Fee
$770,625
3.58%
O/O Expense Reimbursement
$371,585
1.73%
Dealer Fee
$215,300
1.00%
Total Front-end Fees
$2,373,875
6.93%
Strengths
- Annual asset management fee is defined at $41,000
- Selling commissions can be negotiated or reduced by investors with representatives
Concerns
- Selling commissions reach up to 6.0% of gross proceeds
- Multiple broker-dealer allowances totaling $279,890 in addition to dealer fees