Item 5. Fees and Compensation
Cribstone offers services for a fee based upon assets under management or advisement. Additionally,
certain of the Firm’s Supervised Persons, in their individual capacities, may offer securities brokerage
services and/or insurance products under a separate commission-based arrangement.
Wealth Management Fees
Cribstone offers investment management services for an annual fee based on the amount of assets under
the Firm’s management. This management fee generally varies in accordance with the below fee schedule.
The fees are discounted by 30% for non-profit clients. In addition, the Firm may negotiate a higher fee
where a client requires more financial planning and/or investment consulting services than typically
required.
PORTFOLIO VALUE BASE FEE
Up to $1,000,000 1.00%
$1,000,001 - $2,000,000 0.85%
$2,000,001 - $5,000,000 0.75%
$5,000,001 - $7,500,000 0.65%
$7,500,001 - $10,000,000 0.55%
$10,000,001 - $15,000,000 0.50%
Above $15,000,000 0.375%
The annual fee is prorated and charged quarterly, in advance, based upon the market value of the assets
being managed by Cribstone on the last day of the previous calendar quarter. Cribstone defines ‘Portfolio
Value’ as the aggregate amount of assets that are being managed within a given household. Recognizing
that our firm works with many extended families, Cribstone reserves the right to define what constitutes a
household and what does not and who is included in that household on a case-by-case basis.
If assets in excess of $10,000 are deposited into or withdrawn from an account after the inception of a
billing period, the fee payable with respect to such assets is adjusted to reflect the interim change in
portfolio value. For the initial period of an engagement, the fee is calculated on a pro rata basis and billed
with the next regularly scheduled quarterly billing cycle. In the event the advisory agreement is terminated,
the fee for the final billing period is prorated through the effective date of the termination and the
outstanding or unearned portion of the fee is charged or refunded to the client, as appropriate.
Additionally, for asset management services the Firm provides with respect to certain client holdings (e.g.,
held-away assets, accommodation accounts, alternative investments, etc.), Cribstone may negotiate a fee
rate that differs from the range set forth above.
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Disclosure Brochure Cribstone Capital Management, LLC
Retirement Plan Services Fees
Cribstone offers retirement plan consulting services for an annual fee based on the amount of assets in the
plan that the Firm is advising. Other than the fee schedule, the terms of the fees are the same as that
mentioned above (under the Wealth Management Fees section). This fee generally varies in accordance
with the below fee schedule.
PORTFOLIO VALUE BASE FEE
Up to $1,000,000 0.50%
$1,000,001 - $2,000,000 0.40%
$2,000,001 - $5,000,000 0.35%
Greater than $5,000,001 Negotiable
In certain occasions, Cribstone may choose to offer services to a retirement plan on a flat-fee basis. Fees
will be assessed based on the complexity and time of the work involved, as well as the overall risk assumed
in managing the relationship.
Fee Discretion
Cribstone may, in its sole discretion, negotiate to charge a lesser fee based upon certain criteria, such as
anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to be
managed, related accounts, account composition, pre-existing/legacy client relationship, account retention
and pro bono activities.
Additional Fees and Expenses
In addition to the advisory fees paid to Cribstone, clients may also incur certain charges imposed by other
third parties, such as broker-dealers, custodians, trust companies, banks and other financial institutions
(collectively “Financial Institutions”). These additional charges may include securities brokerage
commissions, transaction fees, custodial fees, fees charged by the Independent Managers, margin costs,
charges imposed directly by a mutual fund or ETF in a client’s account, as disclosed in the fund’s
prospectus (e.g., fund management fees and other fund expenses), 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. The Firm’s brokerage practices are described at length in Item 12,
below.
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Disclosure Brochure Cribstone Capital Management, LLC
Direct Fee Debit
Clients generally provide Cribstone and/or certain Independent Managers with the authority to directly
debit their accounts for payment of the investment advisory fees. The Financial Institutions that act as the
qualified custodian for client accounts, from which the Firm retains the authority to directly deduct fees,
have agreed to send statements to clients not less than quarterly detailing all account transactions, including
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