Item 5 Fees and Compensation
Investment Management Agreements, Advisory Contracts and Fees
Channing’s fees are described generally below and detailed in each institutional client’s investment
management agreement (“IMA”), advisory agreement and/or applicable account documents as well as,
with respect to any private fund, in the private fund’s governing documents. Fees for services may be
negotiated with each client on an individual or customized basis depending on institutional client
mandate requirements and restrictions. Channing may group multiple accounts of a client (or group of
related clients) together for fee calculation or billing purposes.
Fees may change over time and, as discussed below, different fee schedules may apply to different
types of clients, strategies and advisory arrangements. Under certain circumstances, fees may be
negotiated on a basis different from Channing’s stated fee schedules. In such cases, Channing
reserves the right to waive or reduce the fees charged to a particular client in its sole and absolute
discretion. Fees paid by private funds where applicable are described to investors, in detail, in the
private fund’s governing documents. As applicable, private fund fees may vary depending on the
nature of the services provided and the investment strategies utilized but generally include
management fees based on a percentage of assets under management.
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Fees for Channing’s services are generally based upon a percentage of assets under management,
and our general annual fee schedules are as follows:
Small-Cap Value: Fees are generally as set forth below, subject to negotiation and related factors as
noted below.
FEE SMALL-CAP
SCHEDULE VALUE
$0 to $25M 100 bps
Next $25M 90 bps
Over $50M
85 bps
to $100M
Above
80 bps
$100M
SMID-Cap Value: Fees are generally as set forth below, subject to negotiation and related factors as
noted below.
FEE SMID-CAP
SCHEDULE VALUE
$0 to $10M 95 bps
Above $10M
85 bps
to $25M
Above $25M
80 bps
to $50M
Above $50M
75 bps
to $100M
Above $100M 70 bps
Large-Cap Value: Fees are generally as set forth below, subject to negotiation and related factors as
noted below.
FEE LARGE-CAP
SCHEDULE VALUE
$0 to $25M 60 bps
Above $25M
55 bps
to $50M
Above $50M
50 bps
to $100M
Above
45 bps
$100M
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All-Cap Value: Fees are generally as set forth below, subject to negotiation and related factors as
noted below.
FEE ALL-CAP
SCHEDULE VALUE
$0 to $10M 70 bps
Above $10M -
65 bps
$25M
Above $25M -
60 bps
$50M
Above $50M -
55 bps
$100M
Above $100M 50 bps
Private Fund Fees
As applicable, any private fund charges the management fees and expenses as set forth in the
governing PPM (private placement memorandum) for such private fund. Any such private fund is not
subject to performance fees, and the fund investment manager will not charge a performance-based
profit or incentive allocation/fee. The fund investment manager is entitled to a management fee equal
to a percentage of the assets under management, payable quarterly in arrears, but does not charge a
performance-based profit or incentive fee. Any private fund may also enter into side letter agreements
from time to time with certain institutional investors as described in the fund’s PPM. For the 3(c)(7)
institutional long-only private fund, Channing Series A SMID-Cap Intrinsic Value Fund, such private
fund has been wound-down for closure, was liquidated by mid-year 2025 as of the end of the 2nd
Quarter, and will no longer be offered.
Collective Investment Trust (“CIT”) Fees
Channing’s fee for serving as investment manager to the Channing SMID-Cap Intrinsic Value Equity
CIT will generally range from approximately 50 bps – 100 bps annually based on the share class, as
disclosed in the offering documents for CIT-Fund.
Wrap & UMA Program Fees
For Wrap and UMA program services, the client will pay the manager for its services and for the
services of Channing on a quarterly or monthly basis in advance or arrears according to a negotiated
fee schedule. Our fees for such asset management services are generally negotiated with the wrap
managers or UMA sponsors, and such advisory fees are not negotiable by the account owner or end-
client. Generally, the minimum account size for such programs is not disclosed to Channing, and
account minimums along with billing arrangements may vary and are generally determined by the wrap
manager or UMA sponsor.
General Information
Wrap/UMA Program Additional Fees:
Wrap and/or UMA program accounts may be charged various program fees in addition to the advisory
fee received by our firm. Such fees may include the investment advisory fees of the independent
advisers, which may be charged as part of a wrap fee or UMA arrangement. In a wrap fee or UMA
arrangement, accounts generally pay a single fee for advisory, brokerage and custodial services.
Portfolio transactions may be executed without a commission charge in a wrap fee or UMA
arrangement. In evaluating such an arrangement, one should also consider that, depending upon the
level of the wrap or UMA fee charged by the broker-dealer, the amount of portfolio activity in the
account, and other factors, the wrap or UMA fee may or may not exceed the aggregate cost of such
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services if they were to be provided separately. Those end-clients evaluating whether to participate in
such arrangements should carefully consider these items.
Additional Fees and Expenses:
In addition to our advisory fees, clients (other than clients in certain wrap fee or UMA programs) are
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