Revenue r ecognition Invest ment advisory and administrative fees Invest ment advisory and administrative fees for the funds and investment advisory fees for separate accounts managed by the Company are recorded in revenue as the services are performed. Such fees are primarily based on predetermined percentages of the market values of the assets under management. The Company's fund invest ment advisory and administrative fees are calculated principally as a percentage of average daily net assets. The Company's separate account investment advisory fees are calculated as a percentage of either beginning, average or ending monthly or quarterly net assets. Invest ment advisory and administrative fees for the funds are earned daily and paid monthly; investment advisory fees for separate accounts are earned daily and paid either monthly or quarterly. The Company may waive certain fees f or investment and administrative services at its discretion. The Company has contractual arrangements with third parties to provide certain fund-related services, including sub - advisory and distribution-related services. Management's determination of whether revenue should be reported gross based on the amount paid by the funds or net of payments to third - party service providers is based on management's assessment of whether the Company is acting as the principal service provider or is acting as an agent. The primary factors considered in assessing the nature of the Company's role include ; (1) whether the Company is responsible for the fulfillment of the obligation, including the accepta bility of the services provided ; (2) whether the Company has reasonable latitude to establish the price of the service provided; (3) whether the Company has the discretion to select the service provider; and (4) whether the Company assumes credit risk in the arrangement. Pursuant to management's assessment of the criteria described above, invest ment advisory and administrative fees are recorded gross of any sub - advisory payments , with the corr