Item 5 – Fees and Compensation
The specific manner in which our fees are charged is established in the Agreement. While certain
clients may be billed in arrears, we will generally bill our fees in advance on a quarterly basis
based upon the value of assets under management and/or advisement on the last day of the previous
quarter, as valued by custodian or another independent third-party or as set forth on the most recent
statement made available to us. The Agreement and/or the separate agreement with any financial
institution(s) authorizes us to invoice the custodian for the advisory fee. The Agreement further
authorizes the custodian to deduct the amount stated in the fee statement from one or more of the
client’s accounts in accordance with applicable custody rules. The custodian does not validate or
check our fee or its calculation on the assets on which the fee is based. The custodian will deduct
the fee from the account(s) or, if the client has more than one account, from the account designated
to pay our fees. The financial institution(s) recommended by us have agreed to send a statement
to the client, at least quarterly, indicating all amounts disbursed from the account including the
amount of advisory fees paid directly to us.
A client may make additions to and withdrawals from the account at any time, subject to our right
to terminate an account. For advanced billing, if assets are deposited into an account after the
inception of a quarter that exceed $100,000 (“Threshold”), the fee payable with respect to such
assets will be prorated based on the number of days remaining in the quarter. Mariner typically
reserves the right to adjust the Threshold upon advance notice to clients. A client may withdraw
account assets, subject to the usual and customary securities settlement procedures. For partial
withdrawals in excess of $100,000 within a billing period, we shall credit our unearned fee towards
the next quarter’s fee. Clients should note that we design our portfolios as long-term investments
and asset withdrawals can impair the achievement of a client’s investment objectives.
For the initial quarter of investment management services, the first quarter’s fees shall be
calculated on a pro rata basis if less than a full calendar quarter. The Agreement between us and
a client will continue in effect until terminated by either party pursuant to the terms of the
Agreement. Our annual fee shall be prorated through the date of termination and any remaining
balance shall be charged or refunded to the client, as appropriate, in a timely manner.
Additions may be in cash or securities provided that we reserve the right to liquidate any
transferred securities, or decline to accept particular securities into a client’s account. We may
consult with our clients about the options and ramifications of transferring securities. However,
clients are advised that when transferred securities are liquidated, they are subject to transaction
fees, fees assessed at the mutual fund level (i.e. contingent deferred sales charge) and/or tax
ramifications.
Investment Advisory Fees
The structure and level of our advisory fee will vary by client based upon the services provided
and other considerations deemed relevant by Mariner, but typically takes the form of a percentage
of assets under management, ranging up to 1.25% per annum. Unless otherwise agreed with a
client, advisory fees are applied to all discretionary assets and non-discretionary assets. All fee
arrangements are subject to negotiation. For consulting and reporting services, the structure and
level of fees will vary by client based upon the services provided and other considerations deemed
relevant by Mariner. In its discretion, Mariner may apply a minimum annual fee with respect to
certain clients. Please see your Agreement for the fees applicable to your account.
Financial Planning and Consulting Fees
Mariner’s planning and consulting fees are generally billed on a fixed fee basis, an hourly rate
basis, or based upon a percentage (%) per annum for services provided at any asset level,
depending upon the level and scope of the service(s) required and the professional(s) rendering the
service(s). fee. All fee arrangements are subject to negotiation.
Fees for Retirement Plan Consulting and Management Services
For employer sponsored retirement plans, the advisory fee will vary by client based upon the
services provided but shall be reasonable in conformity with U.S. Department of Labor
regulations. The structure and level of fees relating to these services will vary by client based upon
the services provided and other considerations deemed relevant by Mariner, but typically takes the
form of a fixed fee basis or a percentage of assets under management. We will generally bill these
fees in arrears and payment is typically collected by directly remitted payments from clients or
through client directed deductions through a plan’s record keeper.
Private Fund Fees
Clients may invest in affiliated and unaffiliated private funds and other privately offered
investment vehicles. Clients will be subject to management fees and/or performance based fees in
addition to Mariner’s advisory fee. The fees and expenses of each vehicle are fully described in
the offering materials. Investors in such privately offered vehicles must meet specific suitability
and investor eligibility requirements in order to invest and specific opportunities may require
higher levels of investment.
Third-Party Manager Fees
The fees payable to a third-party manager will be set forth in a separate written agreement between
you and the designated manager and shall be in addition to the advisory fee payable under your
Agreement. If Mariner retains the third-party manager as a “sub-adviser” to your account, Mariner
will pay the sub-advisory fee from your advisory fee payable to Mariner and there will be no
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