Cortland Associates Inc

Item	5	‐	Fees	and	Compensation
Fee	Schedule
Cortland Associates assesses equity account clients an annual fee of 1.00% or 0.25% per
quarter of the average quarterly assets under management. If the account is a balanced
account, a balanced account fee will be determined based upon the allocation of assets
between the equity and fixed income components of the account. Cortland Associates bills
clients quarterly and in arrears. The quarterly fee is derived by calculating the average
account balance of the assets under management based upon the beginning and end of
quarter account values and then multiplying this figure by the account’s quarterly
percentage fee. The beginning and end of quarter account values are based upon the
custodian’s final day of the quarter electronic download of portfolio positions and related
security prices. There might be minor differences between the custodian’s electronic final
day of the quarter market values and the custodian’s quarter-end statement values due to
trade date/settlement date differences, pending transactions, and slight discrepancies with
prices due to different pricing service providers used by the brokerage firms.

Cortland Associates’ annual fee is negotiable and reserves the right to assess a fee less than
1.00% based upon a client’s aggregate assets under management and other extenuating
circumstances. Clients may terminate the advisory contract at any time. If a client
terminates the advisory relationship prior to quarter-end, the quarterly fee is calculated on
a pro-rata basis for the number of days during the quarter the account was under our
investment management.

Fee	Payment	Methods
The client’s quarterly fee may be deducted from client accounts or billed directly. This
decision is solely the clients. Whether a client’s fee is deducted from their account or paid
directly, the client will receive for their review a copy of Cortland Associates’ quarterly
invoice. The invoice should be reviewed and compared to the custodian’s quarter end
statement to ensure accuracy.

Other	Fees
Cortland Associates’ fees are exclusive of brokerage commissions, transaction fees, and other
related costs and expenses which shall be incurred by the client. Clients may incur certain
charges imposed by custodians, brokers, and other third parties such as custodial fees,
deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund

fees, and other fees and taxes on brokerage accounts and securities transactions. Mutual
funds and exchange traded funds also charge internal management fees that are disclosed in
a fund’s prospectus. Such charges, fees and commissions are exclusive of and in addition to
Cortland Associates’ fee, and Cortland Associates does not receive any portion of the
aforementioned commissions, fees and costs.

Payment	Timing
Cortland Associates bills clients in arrears and does not allow prepayment of fees. As
described previously, Cortland Associates prorates the fee for accounts terminated prior to
quarter end.

Item	7	‐	Types	of	Clients
Cortland Associates provides investment advisory services to individuals, trusts, profit
sharing plans, pension plans, endowments & foundations and eleemosynary organizations.
The firm has a client minimum account size of $500,000 but reserves the right to accept
client relationships below the stated minimum.