Item 5 – Fees and Compensation
SMA FEE SCHEDULES AND BILLING PRACTICES
MNA retains the right to negotiate the fee schedule. Negotiated fee schedules can have lower fees
and different account minimums and minimum annual fees than those set forth in the standard fee
schedules below. MNA may modify its fee schedule at its discretion upon at least thirty (30) days
written notice to the client.
Advisory fees paid to MNA do not include all the fees that a client will pay when MNA purchases or
sells securities for client account(s). In addition to MNA’s fees, clients will incur brokerage
commissions as described under Item 12, transaction fees, custody charges, fees linked to certain
types of securities such as ETFs and mutual funds, including the Manning & Napier Fund, Inc., as
well as other administrative fees.
Custody fees for ETC are embedded in the fee schedules below except that ETC will assess
additional fees for ancillary services. Custody fees for non-affiliated custodians will vary and MNA
does not exercise influence or control over these fees nor will MNA receive any portion of these
fees. The use of a custodian other than ETC will not cause MNA to lower your fee schedule.
MNA receives a management fee and may receive a shareholder servicing fee for providing
advisory and other services to the MN Fund. MNA uses the W shares, which do not carry a
management or shareholder servicing fee when it purchases shares of the MN Fund within its
discretionary SMAs. Information about the MN Fund. can be found in the prospectus, available
online at: www.manning-napier.com. MNA also receives a management fee from ETC when you
invest in the Collective Investment Trust (“CIT”) Funds that MNA manages.
As part of MNA’s comprehensive benefits package, MNA offers its employees a discounted pricing
schedule which includes waiving minimum annual fees and allows for a lower account minimum
which will not be available to current clients or prospects.
STANDARD SMA BILLING PRACTICES:
MNA’s Wealth Management clients pre-pay fees every six (6) months at the annual rates indicated
for each listed fee schedule, unless otherwise stated. The initial fee, which may be for a period of
time less than six (6) months, will be based upon the asset value on or about the date that
management of the account commences, (the "Commencement Date"). Subsequent fees will be
based upon the asset value of the portfolio as of the last calendar day of the month immediately
preceding each six (6) month billing period. Fees pro-rate for the period beginning on the
Commencement Date through the first six-month billing date and shall be billed within sixty (60)
days after the Commencement Date. Thereafter, MNA will bill every six (6) months within thirty
(30) days after reaching the billing date. Prepayment of fees is for less than a six (6) month period.
Typically, clients provide MNA with written authorization to request fee deductions directly from
their custodians. MNA will directly invoice any client who prefers to pay fees to MNA in lieu of
custodian fee deductions. For accounts that are brought in under a promotor agreement
arrangement, MNA will pay a portion of your management fee to the third-party promotor. You will
not pay any additional fees.
MNA clients are required to pay their fees as agreed upon by the executed investment management
agreement. Typically, agreements require that management fees be paid in advance. When a
client, who pays in advance, submits a written cancellation notice, MNA will refund any unearned
fee on a pro-rated basis. MNA will bill for services provided through the date of termination but will
refund fees from the date of termination through the end of the period paid in advance. A small
population of clients pays in arrears. When a client who pays in arrears cancels, MNA will bill the
client from the date of the last bill period paid through the cancellation date.
STANDARD SMA FEE SCHEDULES:
The standard fee schedules set forth below are delineated by strategy but as noted under Item 4,
these fees reflect the cost of your engagement with MNA for the full suite of wealth management
services, including advice, asset management, account monitoring, custody, and other services
upon which you and MNA agree.
Objectives-Based Strategies and Core US Fee Schedule*
Objectives-based strategies, also referred to as multi-asset class strategies, employ a mix of asset
class blends (stocks, bonds, cash) to achieve portfolios ranging from very conservative to highly
aggressive. MNA’s offers the following Objectives-based strategies:
• Conservative Growth*
• Growth with Reduced Volatility
• Long-Term Growth
• Equity Focused Blend
• Equity Oriented
The Core Equity objective seeks to maximize returns over the long-term by investing in domestic
or global equity at a range of 90-100%. MNA offers the following strategy variations:
• US Core Equity
• Core Equity-Unrestricted
• US Large Cap Core Equity Objectives
ANNUAL FEE RATE MARKET VALUE
1.35% Of the first $1,000,000
1.00% Of the market value in excess of $1,000,000
0.85% Of the market value in excess of $3,000,000
0.70% Of the market value in excess of $5,000,000
Minimum account size: $100,000 (except that Conservative Growth requires $200,000)
Minimum annual fee: $1,500.00
NOTE: Fee rates are applied on a graduated scale such that an account with a billable market
value of $3,500,000 will be billed 1.35% on the first $1,000,000, 1.00% on the next $2,000,000 and
0.85% of the remaining $500,000.
*MNA offers a Core Non-US Equity Objective and Global Equity Objective. Standard Wealth
Management fee schedules are not available for these offerings and these objectives carry higher
minimums.
Strategic Income Objective Fee Schedule
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