Item 5 – Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for services provided by the
Adviser. Each Client engaging the Adviser for services described herein shall be required to enter into a written
agreement with the Adviser.
A. Fees for Advisory Services
Wealth Management Services
Wealth management fees are paid quarterly in arrears, pursuant to the terms of the wealth management agreement.
Wealth management fees are based on the average daily market value of assets under management throughout the
calendar quarter at an annual rate of up to 0.70%. Fees are negotiable based on several factors, including: the scope
and complexity of the services to be provided; the level of assets to be managed; and the overall relationship with the
Adviser. Relationships with multiple objectives, specific reporting requirements, portfolio restrictions and other
complexities may be charged a higher fee.
The wealth management fee in the first quarter of service is prorated from the inception date of the account[s] to the
end of the first quarter. Fees may be negotiable at the sole discretion of the Adviser. All securities held in accounts
managed by Morangie Management will be independently valued by the Custodian. There may also be certain
securities held in Client custodian accounts where Morangie Management is not responsible for making investment
decisions. No investment management fees will be charged on such assets. The Adviser will conduct periodic reviews
of the Custodian’s valuation to ensure accurate billing.
The Adviser’s fee is exclusive of, and in addition to any applicable securities transaction and custody fees, and other
related costs and expenses described in Item 5.C below, which may be incurred by the Client. However, the Adviser
shall not receive any portion of these commissions, fees, and costs.
Use of Independent Managers
As noted in Item 4, the Adviser may implement all or a portion of a Client’s investment portfolio utilizing one or more
Independent Managers. The Independent Managers charge fees on Morangie Management clients’ assets managed
in their products and funds in addition to the fees charged by Morangie Management, resulting in fees that are higher
Morangie Management LLC
956 Beachland Blvd., Suite 11, Vero Beach, FL 32963
Phone: 908-285-6686 | Website:
https://morangiemanagement.com/
than the 0.70% rate mentioned above. The Adviser does not earn any compensation from an Independent Manager.
The Adviser will only earn its investment advisory fee as described above.
Morangie Management charges an asset-based fee for advisory services to Cabot MM Partners LLC at an annual
rate of up to 1.30% annually and up to a 20% incentive fee. No fees or incentive fees are charged on investments in
Murphy MM Partners LLC, however third-party managers charge investors management and incentive fees.
In addition to the fees charged by Morangie Management to the Private Funds, investors will also incur management
fees charged by the third-party managers of the underlying private funds into which the Private Funds invest, All fees
and terms are set forth in the Fund’s governing documents as well as in Investment Management Agreements with
Morangie Management’s clients,
B. Other Fees and Expenses
Clients may incur certain fees or charges imposed by third parties, other than Morangie Management, in connection
with investments made on behalf of the Client’s account[s]. The Client is responsible for all custody and securities
execution fees charged by the Custodian, as applicable. The Adviser's recommended Custodian may not charge
securities transaction fees for ETF and equity trades in a Client's account[s], provided that the account meets the
terms and conditions of the Custodian's brokerage requirements. However, the Custodian may charge for mutual
funds, options, fixed income, and/or other types of investments. The fees charged by Morangie Management are
separate and distinct from these custody and execution fees.
In addition, all fees paid to Morangie Management for investment advisory services are separate and distinct from
the expenses charged by mutual funds and ETFs to their shareholders, if applicable. These fees and expenses are
described in each fund’s prospectus. These fees and expenses will generally be used to pay management fees for
the funds, other fund expenses, account administration (e.g., custody, brokerage and account reporting), and a
possible distribution fee. A Client may be able to invest in these products directly, without the services of Morangie
Management, but would not receive the services provided by Morangie Management which are designed, among
other things, to assist the Client in determining which products or services are most appropriate for each Client’s
financial situation and objectives. Accordingly, the Client should review both the fees charged by the fund[s] and the
fees charged by Morangie Management to fully understand the total fees to be paid. Please refer to Item 12 –
Brokerage Practices for additional information.
C. Advance Payment of Fees and Termination
Wealth Management Services
Morangie Management is compensated for its wealth management services at the end of the quarter; after services
are rendered. Either party may terminate the wealth management agreement, at any time, by providing advance written
notice to the other party. The Client may also terminate the wealth management agreement within five (5) business
days of signing the Adviser’s agreement at no cost to the Client. After the five-day period, the Client will incur charges
for bona fide advisory services rendered to the point of termination and such fees will be due and payable by the Client.
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