Item5 - Fees and Compensation
Dunvegan's management fee is agreed upon in writing in the “Letter of Understanding” prior to the
client’s signature. Here is the fee schedule which we use as a guide:
ANNUAL FEE SCHEDULE
Dunvegan’s management fee is based upon the market value at quarter end of assets
supervised, payable quarterly, in advance, at the following annual rates:
Amount Under Supervision
$5,000,000..........ocomerimcies e 1.00 %
Concession for each additional $5,000,000................ 0.05%
After $50,000,000.............oc 0.55%
Eleemosynary institutions receive a 10% discount from the fee schedule.
The specific manner in which fees are charged by Dunvegan is established in a client’s written
agreement, the “Letter of Understanding”, with Dunvegan. DVA will generally bill its fees on a
quarterly basis. Fees are charged at the beginning of a quarter. Clients may elect to be billed
directly for fees or to authorize Dunvegan to directly debit fees from client accounts. Management
fees are prorated for each capital contribution and withdrawal made during the applicable calendar
quarter. Accounts initiated or terminated during acalendar quarter will be charged a prorated fee.
Refunds are payable upon cancellation, which may be verbal or written, should services be
terminated before the end of the quarter.
Clients may terminate management with a phone call, to be followed by a letter. Prepaid
investment advisory fees (unearned) for that quarter will be refunded, prorated to the date of oral or
written notification of cancellation.
Dunvegan’s fees do not include brokerage commissions, transaction fees, and other related costs
and expenses. Such fees and expenses are incurred by the client. Clients may incur certain
charges imposed by custodians, brokers, third party investment and other third parties such as fees
charged by managers, 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, which are disclosed in a fund’s prospectus. Such charges, fees and commissions are exclusive
of and in addition to Dunvegan’s fee. Itis in the client’s best interest as well as that of DVA to
keep commissions, fees, and costs as low as possible. Nonetheless, lower fees for comparable
services may be available from other sources.
Dunvegan including all its supervised persons do not accept compensation for the sale of securities
or other investment products, including asset-based sales charges or service fees from the sale of
mutual funds.
Item 12 further describes the factors that Dunvegan considers in selecting or recommending
broker-dealers for client transactions and determining the reasonableness of their compensation
(e.g., commissions).