Item 5. Fees and Compensation
A. Generally
FLII is generally compensated for investment management services as follows:
(i) Separately Managed Accounts: If a client’s assets are held in a separately
managed brokerage account, the client is charged an annual advisory fee, paid
to FLII quarterly in advance (an “Advisory Fee”). (See below for a description of
fees payable with respect to each FLII strategy.) These fees generally are
deducted from the client’s account but may be paid directly. FLII makes pro rata
adjustments to the quarterly fee charged in the event a client makes any
contributions and/or withdrawals to the account on any day during that quarter
that in the aggregate equal or exceed 10% of the account’s value measured as
of the last day of the prior quarter. Such fee adjustments will be added to or
subtracted from the next quarter’s Advisory Fee.
(ii) Partnerships: If a client’s assets are invested in a partnership that is advised,
managed, or overseen by FLII or one of its affiliates (an “FLII-Advised Fund”),
such FLII-Advised Fund generally pays to FLII or one of its affiliates an annual
management fee quarterly in advance (a “Management Fee”). A client’s assets
invested in an FLII-Advised Fund may also be subject to an incentive allocation.
(See Item “6”.) In addition, partners in FLII-Advised Funds bear their pro rata
share of other partnership expenses. (See the subheading “Other Fees, Costs,
and Expenses” below.) Management Fees for FLII-Advised Funds are generally
not negotiable.
1. Exceptions
Employees. FLII waives Advisory Fees and Management Fees for the accounts
of its employees and their immediate family members.
Fee Breakpoints for Related Clients. FLII may, in its sole discretion, aggregate
the managed or overseen assets of clients who are family members for the purpose of
determining whether such clients meet certain fee breakpoints. Fee breakpoints differ
depending on the strategy, as discussed in more detail in Section B. and Section C. below.
2. Other Fees, Costs, and Expenses
FLII’s Advisory Fees and Management Fees are exclusive of, and in addition to, any fees, costs
and expenses charged by broker-dealers, custodians, and other third parties – all of which will
reduce client returns on their investments.
Custody Fees
Clients are not charged custody fees by broker-dealers we recommend to clients. A client may
choose to custody his or her assets at a custodian bank, which may charge custody fees.
Qualified custodians that custody assets of certain FLII-Advised Funds charge custody fees.
Form ADV Page | 5 March 30, 2026
First Long Island Investors, LLC
Additionally, certain FLII clients use Columbia Private Trust, a division of Columbia Bank and
a self-directed IRA custodian (“Columbia”), to hold interests in FLII-Advised Funds in their
retirement accounts. Columbia succeeded to the FLII client custodial accounts previously held
at Pacific Premier Trust upon the closing of a 2025 transaction involving the parent companies
of Columbia Bank and Pacific Premier Bank.
Brokerage Fees; Expenses Charged by Different Investment Vehicles
Clients bear the cost to trade securities held in their accounts or held by FLII-Advised Funds in
which they invest. (See Item “12”, Brokerage Practices.) Each of the FLII-Advised Funds also
bears certain partnership expenses described in their governing and offering documents
including legal, accounting, audit, and surprise exam fees, as applicable.
Clients who invest in mutual funds bear the fees and expenses charged by those funds.
Fees Paid for Cash Management
Clients’ idle cash held at their custodian broker-dealers is generally invested in money market
funds via an automatic sweep account option or, from time to time and pursuant to
consultations with a client, in shares of certain higher yield money market funds designed to
invest in government money market instruments. In the latter case, FLII will issue instructions
to the custodian broker-dealer to invest in the securities of these money market funds. All
money market funds assess their own management fees. During those periods when client
funds are invested in money market funds, clients are paying fees to FLII on the total amount
of assets under management and to the investment manager of the money market funds. To
avoid potential conflicts of interest, FLII does not (a) retain any of the interest earned by a client
on any cash sweep or money market program or (b) receive any separate compensation from,
or participate in any revenue sharing arrangements with, the custodian broker-dealers that offer
such cash sweep and money market options.
B. Separately Managed Accounts
In general, fees imposed on amounts invested in FLII-advised separately managed accounts
are structured as a percentage of assets managed within a particular strategy, billed quarterly
in advance, and subject to subsequent adjustment for contributions and withdrawals as
described above. FLII has, in certain cases, negotiated a flat fee for clients who have
substantial assets in accounts separately managed by FLII at the inception of the relationship.
Dividend Growth Strategy
Annual Advisory Fee (%) for Assets in Dividend Growth Accounts
Account Breakpoints* Percentage to be applied
First $5 million 1.0%
Next $5 million 0.85%
Next $15 million 0.75%
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