Item 5 - Fees and Compensation
Fees paid to Ziegler for the services described above, except any investment service which may be provided
under a wrap fee program, are for Ziegler advisory services only. The fees do not include, for example, the
fees charged by third parties such as Third-Party Managers, or accountants and attorneys assisting with
providing the client with accounting and legal advice. Commissions on transactions and other account fees
are also charged by brokerage firms in accordance with the account’s brokerage firm’s normal commission
schedule. See Item 12, Brokerage Practices. Customary commissions on insurance are also not included.
Prospective clients should be aware that in addition to Ziegler’s advisory fees, each mutual fund in which a
client’s assets are invested also pays its own advisory fees and other internal expenses which already have
been deducted from the fund’s reported performance. Depending on the fund, a client may be able to invest
directly in the shares issued by the fund with or without incurring any sales or third-party management fees.
Account maintenance fees are also deducted by the custodian. In addition, there are tax effects pertaining to
fund share redemptions, and other sales, made by Ziegler on behalf of clients. Redemptions and sales are
taxable events which may accelerate the recognition of capital gains, and losses, and frequent redemptions
and sales may result in short-term, rather than long-term, capital gains and losses.
Each alternative investment fund in which a client’s assets may be invested also pays its own advisory fees
and other expenses which already have been deducted from the fund’s reported performance. Investors can
expect fees for the underlying alternative investment funds to be higher. Depending on the fund, a client may
be able to invest directly in the fund shares with or without incurring any sales or advisory service fees.
Ziegler IARs giving advice to clients may also be securities and insurance sales representatives who will earn
commissions on the securities and insurance they sell to clients. Thus, they have a conflict of interest when
recommending purchases of products for which they will receive compensation. Because Ziegler and its
IARs may receive continuing asset-based 12(b)-1 fees if clients maintain mutual fund and other fund
positions, this revenue flow would be an influence to Ziegler’s IARs to recommend the purchase of shares
producing these annual fees and to recommend maintaining these share positions rather than sell them to
make investments not involving such higher payments.
The amount of fees paid and funds purchased by clients receiving Investment Management or Financial
Planning Services will vary from client to client based on the type of account, investment needs of the client,
and services requested. Different providers and Managers charge fees independently of Ziegler and of one
another, so those fees will vary. Thus, clients receiving similar advisory services will pay different total fees.
Although Ziegler believes its Investment Management and Financial Planning Services are competitively
priced, clients may be able to obtain similar advisory and brokerage services at lower prices if purchased
elsewhere. Ziegler and the Advisor may make more money based on the type of account that a client opens.
For example, depending on the circumstances, an advisory account may generate more revenue than a
brokerage account or vice versa. Thus, Ziegler and the Advisor may have a financial incentive to recommend
a client open the type of account that generates more revenue for Ziegler or the Advisor.
Investment Management Services Fee
Clients agree to pay an annualized, asset-based fee based on the value of assets in the account. The
maximum total fee a client can be charged on any Ziegler advisory account is 3%. The table below
indicates the fees by Advisory Program.
Fees by Advisory Program*
ZGS ZUMA ZSMA ZADA ZAC ZAMA
Third Party 0.100% - 0.200% - 0.200% - Depends
Manager Fee 0.400% 0.700% 0.600% on Manager
Administration 0.15% 0.25% 0.18% 0.15% 0.15% 0.15%
Fee
*Advisor fee on all Advisory Programs is negotiable. The maximum total client fee will be 3%.
A written confirmation of the client’s selected Advisory Program and associated fees will be delivered
to client. The written confirmation will include estimated total client fees (“Total Client Fees”) for
each account which is a composite that includes the fees associated with the Investment Advisory
Program, including all related Advisor, Trading, Custody, Asset Management, Third Party Manager
and Overlay Service fees. Estimates are based on the current recommended allocation of assets
within each account and may vary with changes to account asset allocation and/or Third Party
Manager selection. Third Party Managers charge different fees and clearing and custody costs may
vary depending on the types of securities invested. Internal expenses associated with individual
mutual funds or ETFs are not included in this composite. Please refer to the applicable prospectus
or disclosure document for information regarding these fees. For additional details on the Total
Client Fees, please contact your Advisor. Actual fees charged may be negotiated with the Advisor
providing the services.
Many Ziegler managed accounts are combined based on household assets and are applied to the
Household Advisory Assets Advisor Fee Tier Schedule provided to the client with their proposal, as
opposed to a traditional flat advisory fee. The Advisor’s fee component of the Total Client Fees
...