Item 5 Fees and Compensation
A. The starting point for advisory fees charged to each client is the following schedule:
Market Value of Assets Under Advisement Annual Rate for Advisory Fee
Up to $100 million 2.00%
$101 million to $200 million 0.75%
$201 million + 0.50%
Adjustments are then made based on the types of securities under advisement, the services received by
the client and the amount of discretion retained by the client. In addition, consideration is given to and
weighted by such factors as the assets under advisement, the amount of oversight involved, level of staff
experience required, and degree of complexity of the assignment. Fees are negotiable and may be fixed.
Matheys Lane enters into “evergreen” investment advisory agreements with its clients, meaning that
such investment advisory agreements continue in full force and effect until terminated by either Matheys
Lane or the respective client. On an annual basis, Matheys Lane and each of its clients agree upon the
compensation to be paid to Matheys Lane under the applicable investment advisory agreement. To
document such mutual understanding, a new fee schedule is signed by both Matheys Lane and each
client.
Payment must be received within 60 days of the Matheys Lane invoice. After 60 days, interest of 1.0%
per month will be charged on unpaid invoices.
B. Matheys Lane may either deduct its fees from clients’ assets or bill clients for its fees. Generally,
the deduction or billing, as applicable, is done on a quarterly basis in advance. A client may negotiate
to be billed in arrears, but such an exception would depend upon special circumstances involving such
factors as the size and complexity of the assets under advisement.
C. For each client, Matheys Lane advisory fees are in addition to (1) the fees and expenses charged by
the exchange-traded funds (“ETFs”), mutual funds, separately-managed accounts, hedge funds, private
equity funds, real estate funds and other third-party funds in which Matheys Lane’s clients are invested
and any other fees and expenses charged by an Outside Manager in connection with a client’s
investments, (2) the brokerage commissions and custodial fees associated with bank and brokerage
accounts, and (3) the fees and expenses of the outside experts (e.g., attorneys, tax preparers and
consultants). None of these additional fees and expenses are paid to Matheys Lane. See Item 12 for
additional disclosure regarding brokerage commissions.
D. To the extent that Matheys Lane bills clients for its fees, clients are generally asked to pay in advance.
The client must give Matheys Lane at least 90 days’ advance written notice before terminating its
investment advisory agreement. Unless a specific termination date is specified within the notice, the date
90 days after such notice shall be considered to be the termination date. Contracts terminated within
the current billing period will have the fees pro-rated to the termination date. Earned fees will be
calculated based upon the number of days since the last billing quarter through the termination date and
any prepaid fees in excess of the pro-rated earned amounts will be reimbursed to the client.
E. Neither Matheys Lane nor any of its supervised persons accepts compensation for the sale of
securities or other investment products.