Item 5. Fees and Compensation
Haymarket provides services on a fee basis, meaning that clients pay an annual fee based upon
a percentage of assets under the Firm’s management. This fee ranges up to 75 basis points (i.e.,
0.75%), as illustrated in the following fee schedule
Portfolio Value Annual Fee
First $1,000,000 ......................................................0.75%
$1,000,001 - $4,000,000 .........................................0.50%
$4,000,001 - $7,000,000 .........................................0.25%
Above $7,000,000.........................................Negotiable
The annual management fee is prorated and charged quarterly in arrears, based upon the average
daily value of the assets being managed by Haymarket during the previous quarter. Since the fee
is determined by average daily account balance, if assets are deposited into or withdrawn from
an account after the inception of a billing period, the fee payable with respect to such assets is
adjusted accordingly. For the initial term of an engagement, the fee is calculated on a pro rata
basis. In the event the client relationship is terminated, the fee for the final billing period is
prorated through the effective date of the termination and the outstanding balance is charged to
the client, as appropriate.
Haymarket, in its sole discretion, may negotiate to charge a lesser or predetermined flat fee on a
client-by-client basis. Client specific circumstances, such as a preexisting relationship as well as
the size and composition of a client’s investment portfolio, will be considered.
Additional Investment Related Fees and Expenses
All fees paid to Haymarket for investment management services are separate and distinct from
the fees and expenses charged by mutual funds to their shareholders. Mutual fund expenses are
generally described in each fund’s prospectus. Haymarket generally intends to invest a
significant portion of client assets in passively managed no-load mutual funds with relatively low
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internal expense ratios. Clients may also incur transaction fees when Haymarket buys, sells or
otherwise transfers mutual funds or other securities on their behalves. Transaction fees are
charged by the account custodian (i.e., the brokerage firm holding client assets for safekeeping),
which may also charge custodial fees, wire transfer fees, interest, and other related charges. Taxes,
regulatory fees and other government charges levied by the client will also be borne by the client.
To the extent clients act on Haymarket’s financial planning related recommendations, other
professionals, such as lawyers and accountants, may also charge separate and additional fees, no
portion of which will be shared with the Firm.
Fee Debit
Clients may authorize Haymarket to debit their account for payment of the Firm’s management
fee. The account custodian sends a statement to the client, at least quarterly, indicating all
amounts disbursed from the account including the amount of management fees paid directly to
Haymarket. Alternatively, clients may elect to have Haymarket send an invoice for payment.
Commissions or Sales Charges for Recommendations of Securities
The Firm does not receive any commissions or transaction fees associated with its investment
management services. No Supervised Persons of Haymarket are registered representatives of a
broker-dealer.