Item 5 Fees and Compensation
INVESTMENT SUPERVISORY SERVICES ("ISS") INDIVIDUAL PORTFOLIO
MANAGEMENT FEES
Our fees are billed quarterly, in advance, at the beginning of each calendar quarter based
upon the level of services a client chooses. Initial discussions with prospective clients
include review of the client service packages available and clients choose which meet their
needs and interests. Fees will be debited from the account in accordance with the client
authorization in the Client Services Agreement. Morgan Kenwood Advisors, LLC
Limited Negotiability of Advisory Fees: Although Morgan Kenwood Advisors, LLC has
established the fee schedule(s), we retain the discretion to negotiate alternative fees on a
client-by-client basis. Client facts, circumstances and needs are considered in determining
the fee schedule. These include the complexity of the client, assets to be placed under
management, anticipated future additional assets; related accounts; portfolio style, account
composition, reports, among other factors. The specific annual fee schedule is identified in
the contract between the adviser and each client.
We may group certain related client accounts for the purposes of achieving the minimum
account size requirements and determining the annualized fee. Discounts, not generally
available to our advisory clients, may be offered to family members and friends of
associated persons of our firm.
FINANCIAL PLANNING FEES
Morgan Kenwood Advisors, LLC's Financial Planning fee is determined based on the nature
of the services being provided and the complexity of each client’s circumstances. All fees
are agreed upon prior to entering into a contract with any client. Our Financial Planning fees
are calculated and charged on an hourly basis, ranging from $100 to $200 per hour.
Although the length of time it will take to provide a Financial Plan will depend on each
client's personal situation, we will provide an estimate for the total hours at the start of the
advisory relationship.
An estimate for total hours may be determined at the start of the advisory relationship. Up to
50% of the estimated fee may be due upon signing the advisory agreement, with the
balance (based on actual hours) due as earned and billed to the client; however, advance
payment will never exceed $500 for work that will not be completed within six months. The
balance is due upon completion of the plan.
CONSULTING SERVICES FEES
Morgan Kenwood Advisors, LLC's Consulting Services fee is determined based on the
nature of the services being provided and the complexity of each client’s circumstances. All
fees are agreed upon prior to entering into a contract with any client.
Our Consulting Services fees are calculated and charged on a quarterly basis, typically
ranging from $2,000 to $10,200 per year, depending on the nature and complexity of each
client's circumstances and upon mutual agreement with the client. Fees are paid one
quarter at a time and drawn at the beginning of each calendar quarter from an account
agreed upon previously.
It is Morgan Kenwood Advisors, LLC's policy not to hold client funds greater than $500 for
more than six months in advance.
The client is billed quarterly in advance based on our estimated Consulting Services fees.
GENERAL INFORMATION
Termination of the Advisory Relationship: A client agreement may be canceled at any
time, by either party, for any reason upon receipt of 30 days written notice. As disclosed
above, certain fees are paid in advance of services provided. Upon termination of any
account, any prepaid, unearned fees will be promptly refunded. In calculating a client’s
reimbursement of fees, we will pro rate the reimbursement according to the number of days
remaining in the billing period.
Mutual Fund Fees: All fees paid to Morgan Kenwood Advisors, LLC for investment
advisory services are separate and distinct from the fees and expenses charged by mutual
funds and/or ETFs to their shareholders. These fees and expenses are described in each
fund's prospectus. These fees will generally include a management fee, other fund
expenses, and a possible distribution fee. If the fund also imposes sales charges, a client
may pay an initial or deferred sales charge. A client could invest in a mutual fund directly,
without our services. In that case, the client would not receive the services provided by our
firm which are designed, among other things, to assist the client in determining which
mutual fund or funds are most appropriate to each client's financial condition and objectives.
Accordingly, the client should review both the fees charged by the funds and our fees to
fully understand the total amount of fees to be paid by the client and to thereby evaluate the
advisory services being provided.
Wrap Fee Programs and Separately Managed Account Fees: Clients participating in
separately managed account programs may be charged various program fees in addition to
the advisory fee charged by our firm. Such fees may include the investment advisory fees of
the independent advisers, which may be charged as part of a wrap fee arrangement. In a
wrap fee arrangement, clients pay a single fee for advisory, brokerage and custodial
services. Client’s portfolio transactions may be executed without commission charge in a
wrap fee arrangement. In evaluating such an arrangement, the client should also consider
that, depending upon the level of the wrap fee charged by the broker-dealer, the amount of
portfolio activity in the client’s account, and other factors, the wrap fee may or may not
exceed the aggregate cost of such services if they were to be provided separately. We will
review with clients any separate program fees that may be charged to clients.
Additional Fees and Expenses: In addition to our advisory fees, clients are also
responsible for the fees and expenses charged by custodians and imposed by broker
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