ITEM 5 - FEES AND COMPENSATION
Investment Advisory Fees and Billing Method
SEPARATE ACCOUNT MANAGEMENT
Emerald ETF’s fees are based on a percentage of assets under management and are billed quarterly in
arrears. Fees are based on the total portfolio values, including accruals, as of the last business day of the
month. Client payment is due to the adviser promptly after billing, which is generally mailed at the
beginning of the next calendar quarter. Emerald ETF may request payment directly from a client’s account
provided that the client has agreed to the arrangement by signing the management agreement and the
client receives copies of all invoices paid. Bills for new accounts activated during the calendar quarter will
be pro-rated so that the client pays only for the period of time during which the account was actually
managed by the adviser. The management agreement can be terminated by either party with thirty days
written notice to the other party by regular U.S mail or other acceptable means. No fee will be charged if a
new client terminates within five business days after signing the management agreement.
Our current general fee schedule is:
For the first $2,000,000 in assets: .25% per quarter
For the next $8,000,000 in assets: .1875% per quarter
For assets over $10,000,000: .15% per quarter
Due to the specific nature of certain client investment programs, these fees can be negotiated depending
on the objectives and relative complexity of managing the account.
See Item 10 – Other Financial Industry Activities and Affiliations
Emerald Asset Management PA, LLC is the parent company of Emerald Separate Account Management
(EMSAM). EMSAM is an adviser to equity separate accounts. EMSAM is the parent company of Emerald
Financial Services Private Equity Partners, LLC. Emerald Financial Services Private Equity Partners, LLC
manages a private equity fund primarily investing in small and non-public banks.
Emerald Asset Management PA, LLC is the parent company to Emerald Advisers, LLC. (EAI). EAI is the
parent company to Emerald Mutual Fund Advisers Trust (EMFAT).
EMFAT acts as an investment sub-adviser registered investment companies. Where suitable, Emerald may
recommend the purchase of shares of the Emerald Mutual Funds for client accounts. No separate advisory
fees are charged on assets held in the Emerald Mutual Funds. However, the client will pay operating
expenses associated with the mutual fund to the investment company.
EAI is a minority owner in EmStone Advisers, LLC (EMSTONE). EMSTONE acts as an investment adviser for
clients investing in fixed income.
Other Fees and Expenses
Account Minimums:
Emerald ETF’s normal minimum to establish an account is $1,000,000. However, Emerald ETF may reduce
the minimum for certain types of accounts such as high net worth individuals.
Brokerage Commissions and Fees:
Emerald ETF Advisers, LLC Brochure 7
In addition to Emerald ETF’s advisory fees, clients pay brokerage commission, transaction fees, SEC fees
and similar related costs and expenses. Clients will also incur fees from their custodian as well. These fees
are not paid to Emerald ETF. Please see item 12 for a further discussion of our brokerage practices.