ITEM 5: FEES AND COMPENSATION
Fee Schedule
The Firm charges investment advisory fees as a percentage of assets under management as follows:
Market Value of Portfolio Annual Fee %
Accounts valued $5,000,000 and below Up to 2.00%
Accounts valued between $5,000,000 and $10,000,000 Up to 1.65%
Accounts valued between $10,000,000 and $24,999,999 Up to 1.40%
Accounts valued at $25,000,000 Up to 1.25%
Accounts valued in excess of $25,000,000 Negotiable
The Firm, in its discretion, may charge a lesser investment advisory fee, charge hourly or flat fees, waive
its fee entirely, or charge fee on a different interval, based upon certain criteria (i.e., anticipated future
earning capacity or additional assets, dollar amount of assets to be managed, related accounts, account
composition, complexity of the engagement, anticipated services to be rendered, employees and family
members, courtesy accounts, competition, negotiations with client, etc.). As result of the above, similarly
situated clients could pay different fees. In addition, similar advisory services may be available from other
investment advisers for similar or lower fees. Fees may be waived for accounts of Firm employees and their
relatives. Fees may also be waived for 529 or other similar college savings plan accounts.
The Firm’s annual investment advisory fee is prorated and paid monthly, in arrears, based upon the market
value of the account on the last business day of the previous month. Except as discussed above, the Firm
does not require any minimum annual fee for investment advisory services. Clients may elect to have the
Firm’s advisory fees deducted from their custodial accounts. In the limited instances that the Firm bills the
client directly, payment is due upon receipt of the Firm’s invoice.
As discussed above, the Firm uses Dynasty’s TAMP services. Clients will be charged, separate from and in
addition to their investment management fee, the TAMP fee; mutual fund and ETF fees imposed directly at
the fund level (e.g., management fees and other fund expenses), and any applicable independent third-party
manager fees. The Firm does not receive any portion of the fees paid directly to Dynasty or the service
providers made available through its platform, including the independent third-party managers.
The independent third-party manager fees are determined by the particular program(s) and manager(s) with
which the client’s assets are invested and are calculated based upon a percentage of client assets under
management, as applicable. Independent fixed income manager fees generally range from 0 - 0.90%
annually, and independent equity manager fees generally range from 0.00% - 1.50% annually.
Client will note the total fee reflected on their custodial statement will represent the sum of our investment
management fee, Platform Fee(s), and independent third-party manager fee(s), accordingly. The client
should review such statements to determine the total amount of fees associated with their requisite
investments, and clients should review their investment management agreement with us to determine the
investment management fee the client pays to us.
If the Firm uses Dynasty’s TAMP, our annual fee with respect to TAMP assets is billed and payable on a
pro-rata basis, quarterly in advance, based upon the market value of the assets being managed by the Firm
on the last day of the previous quarter. Fee adjustments will be made for deposits and withdrawals in excess
of $50,000 during the quarter. If the investment management agreement is executed at any time other than
the first day of a calendar quarter, our fees will apply on a pro rata basis, which means that the management
fee is payable in proportion to the number of days in the quarter for which you are a client. In the event the
portfolio management agreement is terminated, the fee for the final billing period will be prorated through
the effective date of termination, and the outstanding or unearned portion of the fee will be charged or
refunded to you, as appropriate. Our management fee is negotiable, depending on individual client
circumstances.
Termination
An advisory agreement with a client generally is open-ended with no specific termination date. Either a
client or the Firm generally may terminate an investment advisory agreement at any time upon notice of
such termination to the non-terminating party. Any unearned advisory fees that were prepaid by a client
generally would be refunded to such client in connection with such termination (except as otherwise set
forth in the advisory agreement).
Consulting Services
The Firm may provide consulting services (on investment and non–investment related matters) on a stand–
alone fee basis. The Firm’s consulting fees are negotiable, and the Firm may be engaged on a fixed fee or
hourly basis, but its hourly fees generally range from $150 to $500, depending upon the level and scope of
the services required and the professionals rendering the services.
Brokerage Commissions, Custodial Fees and Other Fees
Each client is generally responsible for and pays all brokerage commissions and other transaction costs.
While Eight 31 does not have any formal soft dollar arrangements, it may receive research and brokerage
services in connection with its overall economic relationship with broker-dealers, including non-trading and
execution services. See “Item 12: Brokerage Practices” below for a discussion of Eight 31 soft dollar
practices and a description of the factors that Eight 31 considers in selecting counterparties for the execution
of transactions.
Broker-dealers and custodians may charge brokerage commissions, margin interest, transaction fees, and
other related costs on the purchases or sales of mutual funds, equities, bonds, options, and ETFs. Mutual
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