Item 5 Fees and Compensation
ASSET CONSULTING FEES
Chartwell Consulting's fee schedule for asset consulting services is described below:
INVESTMENT POLICY FORMULATION
Work with clients to establish the risk and return requirements for management of their
assets. Investment restrictions are also identified, and performance guidelines used for
evaluation are established. The fee is $5,000 per client/plan. All fees will be due upon
presentation of the work to the client.
ASSET LIABILITY STUDY
The exposure in equities and fixed income (including international), cash equivalents and
any other client approved asset class (alternatives, private equity, real estate, etc.) in a
client's portfolio can be evaluated. Specific asset groups will be reviewed to help better
achieve the client's return or asset liability goals. The fees will typically range from
$25,000 to $35,000 depending on the number of asset classes to be evaluated and the
complexity of the client's situation. All fees will be due upon presentation of the work to
the client.
INVESTMENT FUND SEARCH
Chartwell Consulting can screen for mutual funds, ETFs, CITs (collective investment
trusts) based on the specific needs of a client. The fees for this service will range from
$4,000 to $7,500 per fund search. All fees will be due upon presentation of work to the
client.
INVESTMENT ADVISER SEARCH
Chartwell Consulting will screen for investment managers for separate account or
commingled fund management based on client specific criteria. The fee for this service
ranges from $10,000-$25,000 for each search, depending on the structure of the search
(traditional management versus alternatives, for example). In the event of a multiple
manager search project, an appropriate fee structure may be negotiated.
PERFORAMNCE MONITORING AND EVALUATION
Chartwell will provide performance reports and evaluation (provided that adequate and
appropriate data is supplied by the client and/or client's custodian). The fee for this
service is $12,000 to $15,000 per investment manager or fund evaluated, or can be a
percent of assets which are being monitored. These fees will be billed quarterly in
arrears.
GENERAL INFORMATION ON FEES
In certain circumstances, all fees and account minimums can be negotiated.
A client agreement may be canceled at any time, by either party for any reason upon
receipt of 90 days written notice. Upon termination on any account any prepaid, unearned
fees will be promptly refunded.
If a client requests a special version of any of the above services that goes beyond the
typical scope of these services, Chartwell may charge an additional fee. The size of this
fee will be determined by the complexity of each client's request. This fee will be
disclosed to the client before entering into the service and will be due and payable upon
completion of the service or quarterly in arrears, as applicable.
At the discretion of the client, and when applicable, all or part of the client's fee may be
paid directly by an investment company in 12(b)-1 fee offset arrangement or from a
client's ERISA budget/administration account. Chartwell may at the client's request,
assist in negotiating such an arrangement; however, no client is obligated to enter into
this type of arrangement.
GENERAL INFORMATION
Termination of the Advisory Relationship: A client agreement may be canceled at any
time, by either party, for any reason upon receipt of 90 days written notice. Upon
termination of any account, any prepaid, unearned fees will be promptly refunded.
Mutual Fund Fees: All fees paid to Chartwell Consulting (USA) LLC for investment
advisory services are separate and distinct from the fees and expenses charged by
mutual funds and/or ETFs to their shareholders. These fees and expenses are described
in each fund's prospectus. These fees will generally include a management fee and other
fund expenses. Chartwell does not recommend client's invest in funds with a distribution
fee, sales charge or deferred sales charge. A client could invest in a mutual fund directly,
without our services. In that case, the client would not receive the services provided by
our firm which are designed, among other things, to assist the client in determining which
mutual fund or funds are most appropriate to each client's financial condition and
objectives. Accordingly, the client should review both the fees charged by the funds and
our fees to fully understand the total amount of fees to be paid by the client and to thereby
evaluate the advisory services being provided.
Additional Fees and Expenses: In addition to our advisory fees, clients are also
responsible for the fees and expenses charged by custodians and imposed by broker
dealers, including, but not limited to, any transaction charges imposed by a broker dealer
with which an independent investment manager effects transactions for the client's
account(s).
Grandfathering of Minimum Account Requirements: Pre-existing advisory clients are
subject to Chartwell Consulting (USA) LLC's minimum account requirements and
advisory fees in effect at the time the client entered into the advisory relationship.
Therefore, our firm's minimum account requirements will differ among clients.
ERISA Accounts: Chartwell Consulting (USA) LLC is deemed to be a fiduciary to
advisory clients that are employee benefit plans pursuant to the Employee Retirement
Income and Securities Act ("ERISA"), and regulations under the Internal Revenue Code
of 1986 (the "Code"), respectively. As such, our firm is subject to specific duties and
obligations under ERISA and the Internal Revenue Code that include among other things,
restrictions concerning certain forms of compensation. To avoid engaging in prohibited
transactions, Chartwell Consulting (USA) LLC may only charge fees for investment advice
about products for which our firm and/or our related persons do not receive any
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