Item 5 - Fees and Compensation
Harmony charges fees based on a percentage of assets under management, depending on the particular types
of services to be provided. The specific fees charged by Harmony for services provided will be set forth in
each client’s Agreement.
A. Investment Management Services
Fees for Investment Management Services
Harmony charges an annual advisory fee that is agreed upon with each client and set forth in an agreement
executed by Harmony and the client. If fixed, the advisory fee will be specified on the fee schedule as set
forth in the agreement executed by Harmony and the client. If based on a percentage of the value of assets
under management, the advisory fee for the initial quarter shall be paid, on a pro rata basis, in arrears, based
on the value of the net billable assets under management at the end of such initial quarter. For subsequent
quarters, the advisory fee shall be paid, in arrears, based on the asset value of the client’s accounts as of the
last business day of the preceding quarter as provided by third-party sources, such as pricing services,
custodians, fund administrators, and client-provided sources.
Harmony generally charges management fees according to the following schedule: annual advisory fee of
Harmony is 1.5% of the account value under management.
Harmony Capital Advisors, LLC Disclosure Brochure
Fees for Investment Management Services to Retirement Plans
Retirement plan advisory clients will be charged an asset based fee. Initially, 1.5% of the annual fee is due
upon entering into the agreement with the Firm and the remainder of the annual fee is charged quarterly
thereafter at the end of each calendar quarter.
Notwithstanding the foregoing, Harmony and the client may choose to negotiate an annual advisory fee that
varies from the set forth above. Factors upon which a different annual advisory fee may be based include,
but are not limited to, the size and nature of the relationship, the services rendered, the nature and
complexity of the products and investments involved, time commitments, and travel requirements. The
advisory fee charged by the Firm will apply to all of the client’s assets under management, unless
specifically excluded in the client agreement. The advisory fee may include the financial planning services
described above. Although Harmony believes that its fees are competitive, clients should understand that
lower fees for comparable services may be available from other sources and firms.
The investment advisory agreement between Harmony and the client may be modified, changed, and
terminated at will by either Harmony or the client upon signed written notice pursuant to New Hampshire
Securities Law. Harmony does not impose termination fees when the client terminates the investment
advisory relationship, except when agreed upon in advance.
B. Private Fund Fees
Harmony receives a fee as described in the offering document of the Fund. The Fund is responsible for direct
expenses incurred in connection with or otherwise related to its operations and activities, including expenses
associated with its investment portfolio, including brokerage commissions and other transaction costs. Item
12 of this Brochure discusses how the Adviser selects brokers, and how the Adviser determines the
reasonableness of their compensation.
The direct expenses incurred by the Fund varies depending on the nature of the operations and activities of
the Fund and the Fund’s respective Offering Documents describe them in detail.
C. Payment of Fees
For Non-Fund Clients, Harmony generally deducts its advisory fee from a client’s investment account(s)
held at his/her custodian. Upon engaging Harmony to manage such account(s), a client grants Harmony this
limited authority through a written instruction to the custodian of his/her account(s). The client is
responsible for verifying the accuracy of the calculation of the advisory fee; the custodian will not determine
whether the fee is accurate or properly calculated. See Section A herewith for further information on fee
billing. A client may utilize the same procedure for financial planning or consulting fees if the client has
investment accounts held at a custodian.
Although clients generally are required to have their investment advisory fees deducted from their accounts,
in some cases, Harmony will directly bill a client for investment advisory fees if it determines that such
billing arrangement is appropriate given the circumstances.
Harmony Capital Advisors, LLC Disclosure Brochure
The custodian of the client’s accounts provides each client with a statement, at least quarterly, indicating
separate line items for all amounts disbursed from the client's account(s), including any fees paid directly
to Harmony.
Clients may make additions to and withdrawals from their account at any time, subject to Harmony’s right
to terminate an account with signed and written concent pursuant to New Hampshire Securities Law.
Additions may be in cash or securities provided that the Firm reserves the right to liquidate transferred
securities or decline to accept particular securities into a client’s account. Clients may withdraw account
assets at any time on notice to Harmony, subject to the usual and customary securities settlement
procedures. However, the Firm generally designs its portfolios as long-term investments and the withdrawal
of assets may impair the achievement of a client’s investment objectives. Harmony may consult with its
clients about the options and implications of transferring securities. Clients are advised that when
transferred securities are liquidated, they may be subject to transaction fees, short-term redemption fees,
fees assessed at the mutual fund level (e.g. contingent deferred sales charges) and/or tax ramifications.
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