Hobart Private Capital LLC

Item 5: Fees & Compensation

Compensation for Our Advisory Services

In addition to the information provided in Item 4 – Advisory Business, this section provides
additional details regarding our Firm’s services along with descriptions of each service’s fees and
compensation arrangements. It should be noted that lower fees for comparable service may be
available from other sources. The exact fees and other terms will be described in the agreement
between you and Hobart.

Asset Management Services:

Hobart receives an asset-based fee for its asset management services (“Advisory Fee”). The maximum
annual Advisory Fee charged will not exceed 2.00%. The actual Advisory Fee to be assessed will be
described in the Investment Advisory Agreement to be signed by the client and our Firm. Except as
otherwise described below, Advisory Fees are billed quarterly, in advance, based on the value of the
account(s) on the last day of the previous quarter. For purposes of determining the client's assets
under management, any accounts owned by members of client's household may, at the option of the
Firm, be aggregated. Please note that some client assets may be considered “assets under
management” for purposes of calculating our fee even though they would not be considered “assets
under management” for purposes of regulatory reporting as referenced in Item 4 of this Brochure.

Each quarterly fee is calculated by multiplying the market value of the assets under Hobart’s
management as of the last business day of the preceding quarter by the annual Advisory Fee, and
multiplying that number by the number of days in the quarter divided by the number of days in the
year. Advisory Fees for services during the initial quarter in which the account is opened shall be a
prorated fee calculated according to the days remaining in the quarter when the account is opened.
Advisory Fees on amounts deposited during a quarter are payable upon the commencement of
management of the account. The fee charged on such a deposit is calculated by dividing the number
of days remaining in the quarter by the total days in the quarter and multiplying the quotient by the
quarterly fee derived by the process described above. Credits for withdrawals made during a quarter
will not be issued.

Form ADV Part 2A – Firm Brochure              Page | 10                                 Hobart Wealth

Advisory Fees are negotiable and will typically be deducted from client account(s). For those clients
whose Advisory Fees are deducted by us:
        a) Clients will provide authorization permitting our Firm to be directly paid; and
        b) The client’s independent custodian sends statements at least quarterly showing
           the market values for each security included in the account and all account
           disbursements, including the amount of the advisory fees paid to our Firm.

In certain cases, our Firm will agree to bill clients directly rather than deduct fees from the client’s
account. Invoices for fees may be paid by check, ACH, direct debit, or credit card.

In the event that our Firm employs the services of Third-Party Managers or Model Providers in
connection with our provision of asset management services, clients will incur an additional amount
charged by any Third-Party Manager or Model Provider (the “Third-Party Management Fee” or
“Model Provider Fee”, as applicable). The Third-Party Manager Fee or Model Provider Fee is
disclosed in a separate disclosure delivered to the client by Hobart at or before the time the assets
are designated to be managed or advised by that Third-Party Manager or Model Provider. Third-
Party Manager and Model Provider fees are separate and in addition to our Advisory Fee. Third-
Party Manager and Model Provider fees will apply only to those client assets allocated to the Third-
Party Manager or Model Provider.

The fee billing and calculation method of the Third-Party Management Fee or Model Provider Fee
will vary based on the Third-Party Manager or Model Provider recommended. Third-Party Managers
assess fees in different ways, including quarterly in advance based on the amount of assets under the
Third-Party Manager’s management as of the last business day of the prior quarter, quarterly in
arrears based on the average daily balance of the Third-Party Managed assets, or quarterly in arrears
based on the amount of Third-Party Managed account assets as of the last day of the prior quarter in
which services are rendered. In some cases, Third-Party Manager Fees are billed to your account by
our Firm and remitted to the Third-Party Manager, in others the Third-Party Manager directly bills
your account upon its instruction to the custodian. Third-Party Manager Fees applicable to any
partial billing period are pro-rated. Model Providers typically assess fees quarterly in advance based
on the amount of assets allocated to the Model Provider on the last business day of the preceding
quarter. Model Provider Fees will generally be calculated and billed to the client by our Firm in the
manner described above for Advisory Fees and remitted to the Model Provider. Clients will be
provided with a copy of the chosen Third-Party Manager’s or Model Provider’s Form ADV Part 2A
Brochure and other disclosure documents detailing exactly how fees are billed and calculated and
are encouraged to carefully review those documents.

Both the Advisory Fee and Third-Party Management Fee for accounts managed by AE Wealth
Management, LLC (“AEWM”) are billed quarterly in arrears based on the average daily balance of the
account assets. AEWM’s Third-Party Management Fee is billed to your account by our Firm and
remitted to AEWM on a quarterly basis.

Please note that the rates charged to our clients will not necessarily be the standard rates shown on
that Third-Party Manager’s or Model Provider’s Brochure. Rather, the rate on the disclosure form
...

Item 7: Types of Clients & Account Requirements

Hobart generally provides investment advice to the following types of clients:
•   Individuals
•   High net worth individuals
•   Pension and profit-sharing plans
•   Trusts, estates, or charitable organizations

Our Firm generally requires that new clients have a minimum liquid net worth of $250,000 for our
asset management services. This minimum requirement is generally negotiable. Our Firm does not
generally impose any other requirements for opening and maintaining accounts or otherwise
engaging us.