Fees and Compensation — Form ADV Part 2A (3/25/2025)
[Brochure]
Fees and Compensation
Compensation and Fee Schedules
All clients are “qualified purchasers” as defined in Section 2(a)(51) of the Investment Company
Act of 1940, as amended, and therefore this information is not required.
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Deduction of Fees
HCM invoices its clients for investment advisory services on a quarterly basis in arrears.
Other Fees and Expenses
In addition to the fees payable to HCM, clients of HCM will incur certain other expenses or
charges. The direct expenses incurred by HCM in providing services to accounts of the Honeywell-
sponsored U.S. Master Retirement Trust are reimbursed to HCM from the U.S. Master Retirement
Trust in arrears on the basis of time allocations kept by HCM employees and periodic audits by an
independent auditor. Other expenses payable by clients of HCM include any sales or other taxes,
fees or government charges assessed against the account of a client; commissions, brokerage fees
and similar charges incurred in connection with the purchase or sale of securities (including any
merger fees payable to third parties and whether or not any such purchase or sale is consummated);
indemnification obligations and expenses; expenses attributable to normal and extraordinary
investment banking, commercial banking, accounting, auditing, appraisal, tax advisory, tax
preparation, legal, external consulting, custodial and registration services provided to HCM’s
clients; premiums for liability insurance; and the costs and expenses for tax and audit services.
The section titled “Brokerage Practices” describes the factors HCM considers in selecting or
recommending broker-dealers and determining the reasonableness of their compensation.
Timing of Payments
Advisory fee payments are generally payable quarterly in arrears. Please refer to the Governing
Documents for more complete information on the timing of advisory fee payments for each client.
Upon termination of any account, any earned, unpaid fees will be due and payable, based on the
number of days during the period services were rendered to the client during the preceding quarter.
Transaction-Based Compensation
Neither HCM nor its supervised persons will receive any transaction-based compensation for the
purchase or sale of securities or other investment products by any client.
Performance-Based Fees and Side-by-Side Management
Not applicable.
Account Minimums and Types of Clients — Form ADV Part 2A (3/25/2025)
[Brochure]
Types of Clients
HCM provides advice to pension plans and other types of employee-benefit plans sponsored by
Honeywell, by providing investment management and supervisory services to separate accounts
of the trusts established for such employee-benefit plans.
Minimum Investment Requirements
HCM does not require any minimum initial balance to manage the account of a client. However,
HCM only manages accounts of Honeywell pension plans and employee benefit plans.
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Methods of Analysis, Investment Strategies and Risk of Loss