Ethic Inc

Item 5: Fees and Compensation
A. Fee Schedule

Portfolio Management Fees

For portfolio management services, Ethic charges up to 0.40% of the total assets under management.

Ethic generally uses an average of the daily balance in each Client’s End Client accounts throughout the billing
period, after taking into account deposits and withdrawals, to determine the market value of the assets upon which
the advisory fee is based for each Client. These fees are generally deducted directly from each Client’s End Client
accounts.

These fees are generally negotiable, and the final fee schedule is attached to the applicable agreement.

Fees charged do not exceed any limit imposed by any applicable regulatory agency. The notice of termination
requirement and payment of fees for portfolio management services depend on the Client engaging Ethic as a
sub-adviser (or adviser). This relationship is memorialized in an agreement between Ethic and the Client or the End
Client, as applicable.

Model Delivery Services Fees

For the model delivery services that Ethic provides to Clients, Ethic charges up to 0.40% of the total assets under
advisement.

These fees are generally negotiable, and the final fee schedule is attached to the applicable agreement. These fees
are typically deducted directly from each Client’s End Client accounts.

Fees charged do not exceed any limit imposed by any applicable regulatory agency. The notice of termination
requirement and payment of fees for model delivery services depend on the Client engaging Ethic as a sub-adviser
or adviser. This relationship is memorialized in an agreement between Ethic and the Client.

B. Payment of Fees

Payment of Portfolio Management Services Fees

Generally, portfolio management fees are calculated daily by applying the annualized management fee set forth in
the applicable agreement pro rata to the closing market value of each End Client account, as set forth on account
records maintained by the applicable custodians. Portfolio management fees may be withdrawn from Clients’ or
End Clients’ accounts or Clients may be invoiced for such fees, as disclosed in each contract between Ethic and the
applicable Client. Generally, portfolio management fees are withdrawn directly from the relevant Client's accounts
on a quarterly basis.

For Clients that reach certain aggregate account thresholds, portfolio management fees may instead be calculated
on a quarterly basis, in arrears, and are based on the Aggregate Value (as defined below) of all End Client accounts
for the prior quarter, as set forth on account records maintained by the applicable custodian, multiplied by
one-quarter of the applicable annualized rate. The “Aggregate Value” is calculated by averaging the daily account
balance (using the closing market value) of each End Client account.

                                                                                         Ethic Inc. Form ADV Part 2A

Fee payments are generally assessed in arrears and are due at the end of the calendar quarter. In the event the
applicable agreement is either executed at any time other than the first day of the calendar quarter or terminated
prior to the last day of the calendar quarter, the portfolio management fees will be prorated based on the number of
days the End Client’s account assets were under management.

In the event fees are billed in advance, Ethic’s portfolio management fees will be calculated by the Client during
their normal billing process. The calculation is generally performed by applying the agreed upon annual fee rate
multiplied by the aggregate fair market value of all applicable assets as measured on the last day of each previous
quarter, multiplied by a fraction equal to the actual number of days during the quarter divided by the actual days of
the calendar year. Once collected, Clients are responsible for forwarding to Ethic the amount of fees owed for the
services provided.

Payment of Model Delivery Services Fees

Generally, model delivery services fees are calculated on a quarterly basis, in arrears, and are based on the
Aggregate Value (as defined below) of all End Client accounts for the prior quarter, as set forth on account records
maintained by the applicable custodian, multiplied by one-quarter of the applicable annualized rate. The “Aggregate
Value” is calculated by averaging the daily account balance (using the closing market value) of each End Client
account for which a delivered model portfolio was utilized at any time during the applicable quarter. In the event the
applicable agreement is either executed at any time other than the first day of the calendar quarter or terminated
prior to the last day of the calendar quarter, the model delivery fees will be prorated based on the number of days
the End Client’s account was open.

C. Client Responsibility For Third-Party Fees

Clients and End Clients are responsible for the payment of all third-party fees (i.e., custodian fees, brokerage fees,
mutual fund fees, transaction fees, etc.). Those fees are separate and distinct from the fees and expenses charged
by Ethic. Please see Item 12: Brokerage Practices of this Brochure.

D. Prepayment of Fees

Ethic generally collects its fees in arrears.

However, when Clients bill in advance, Ethic will mutually determine with the Client if Ethic’s fee is to be billed in
advance or in arrears. Refunds of fees for Clients will be calculated and processed by the Clients in accordance
with their normal billing process. Clients will generally net any refunds owed from future fee payments to Ethic.

E. Outside Compensation For the Sale of Securities to Clients

Neither Ethic nor its supervised persons accept any compensation for the sale of investment products, including
asset-based sales charges or service fees from the sale of mutual funds.

Item 7: Types of Clients
Ethic generally provides services to the following types of Clients:

        •​   Individuals​ ​      ​         ​      ​        •​      High-Net-Worth Individuals
        •​   Banks and Thrift Institutions​​      ​        •​      Investment Companies
        •​   Insurance Companies​          ​      ​        •​      Pooled Investment Vehicles

                                                                                          Ethic Inc. Form ADV Part 2A

        •​   Pension and Profit Sharing Plans​    ​        •​      Charitable Organizations
        •​   Corporations or Business Entities​   ​        •​      Other Investment Advisers

Ethic maintains account minimums that vary depending on the Ethic solutions that the Client is utilizing. However,
Ethic reserves the right to waive these account minimums at its discretion.