Item 5 - Fees and Compensation
Fees for Portfolio Management and Retirement Plan Consulting
The annual fee schedule, based on a percentage of assets under management, is as follows:
• Up to 2.5% on non-discretionary accounts
• Up to 3.0% on discretionary accounts
Hayden Royal does not generally impose a minimum annual fee or a minimum portfolio value. Hayden
Royal may, at its discretion, make exceptions to the foregoing or negotiate special fee arrangements
where Hayden Royal deems it appropriate under the circumstances. Each client’s specific fee schedule
will be included in their Advisory Management Agreement.
Portfolio management fees are generally payable quarterly, in advance. If management begins after the
start of a quarter, fees will be prorated accordingly and billed the first month after account inception.
Deposits and/or withdrawals of $10,000 or more made during the calendar quarter will be prorated
and charged or rebated in advance (arrears), as applicable.
With client authorization in the Advisory Management Agreement and unless other arrangements are
made, fees are normally debited directly from client account(s).
Margin
Our Investment Adviser Representatives may trade on margin for client accounts, when consistent with
the client’s suitability profile and risk tolerance or at the client’s directive. This could result in a high
portfolio turnover ratio and higher transaction charges in accounts with such charges. Additionally, the
use of margin results in interest charges as well as all other fees and expenses associated with the
security or account involved.
Fees are debited directly from client accounts and are calculated using the total assets in the account
as shown on the client custodial statement, including any assets purchased on margin. If there is a net
debit cash balance in the account as a result of using margin, the cash balance will be excluded from the
fee calculation. Net positive cash balances in type 1 (cash account) and type 2 (margin account) are
included in the fee calculation.
Trust Services Fee
As indicated above at Item 4, Hayden Royal can provide trust services to its clients through an affiliation
with HRTS. If a client determines to use HRTS’s trust services, HRTS will serve as the administrative
trustee and Hayden Royal will serve as the client’s investment adviser. Clients will be charged both an
administrative trustee fee by HRTS and an investment advisory fee by Hayden Royal in accordance with
the fees outlined above in this Item 5. The fee charged by HRTS is generally based on a percentage of
the market value of the assets in trust, subject to annual fee minimums. The fee charged by HRTS is
dictated in a separate agreement between the client and HRTS. Hayden Royal and HRTS do not share
fees. No client is under any obligation to use HRTS’s trust services. Hayden Royal’s Chief Compliance
Officer remains available to address any questions that a client or prospective client may have
regarding our relationship with HRTS, this offering, or the fees imposed by either HRTS or Hayden
Royal.
General Fee Information
In addition to the fees outlined above, a separate technology platform fee of up to .25% (subject to a
$10 minimum quarterly technology platform fee-$40 annually) per account is charged which covers
the firm's technology platforms used for billing, reporting and accessing a wide field of money
managers. To the extent that the overall quarterly fee assessed on each account is less than $10, the
difference shall be assessed and charged to the client. Fees may be customizable depending on the
needs of the client. Additionally, no increase in the annual fee shall be effective without prior written
notification to the Client.
Fees paid to Hayden Royal in a non-wrap program are exclusive of all custodial and transaction costs
paid to the client’s custodian, brokers or other third-party consultants. Please see Item 12 – Brokerage
Practices for additional information. The client should review all fees charged by funds, brokers,
Hayden Royal and others to fully understand the total amount of fees paid by the client for investment
and financial-related services.
We generally invest Client’s cash balances in money market funds, FDIC Insured Certificates of Deposit,
high-grade commercial paper and/or government backed debt instruments. Ultimately, we try to
achieve a reasonable return on your cash balances through relatively low-risk and conservative
investments. In most cases, at least a partial cash balance will be maintained in a money market
account so that our firm may debit advisory fees for our services related to our Asset Management
service. Advisor can at their discretion charge its management fee on the total market value of your
account quarterly, including money market values/cash as advisor considers this a separate asset class.
Other Charges
In addition to the advisory fees paid to Hayden Royal, clients may also incur certain charges imposed
by other third parties, such as broker-dealers, custodians, trust companies, banks and other financial
institutions (collectively “Financial Institutions”). In addition, each mutual fund or third-party
investment manager charges asset management fees, which are in addition to the advisory fees charged
by our firm. The fees charged by such funds or managers are disclosed in each fund’s prospectus or
Manager’s ADV Part 2A. The Management Fee also does not cover fees and charges in connection with:
debit balances; margin interest; odd-lot differentials; IRA fees; transfer taxes; exchange fees; wire
transfers; extensions; non-sufficient funds; mailgrams; legal transfers; bank wires; postage; costs
associated with exchanging foreign currencies; and SEC fees or other fees or taxes required by law.
These additional charges include securities brokerage commissions, transaction fees, custodial fees,
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