Item 5 Fees and Compensation
Financial Planning
Financial planning fees can be charged on a fixed fee basis, or included with asset management services.
Fixed fees will be between $2,000 and $15,000. The fee range stated is a guide. Fees may be higher or
lower than this range, based on the nature of the engagement. Fees are negotiable and will depend on
the anticipated complexity of your plan.
Asset Management
Generally, fees may vary from 0.50% to 2.00% per annum of the market value of a client’s assets managed
by MCP. The value used to calculate the asset management fee will include any allocation to cash or cash‐
like instruments, such as money market funds or accounts, of the client’s investable assets. Investable
cash means cash that is in client account as an asset allocation. Cash that is not in investable cash is cash
that has been identified by the client as designated for a specific purpose. The fee range stated is a guide,
a client’s actual fee will be noted in the investment advisory agreement. Fees are negotiable, and may be
lower than this range, based on the nature of the account. Factors affecting fee percentages include the
size of the account, complexity of asset structures, and other factors.
Fee Payment
Investment management fees will be debited directly from each client’s account. The advisory fee is paid
quarterly, in advance, and the value used for the fee calculation is the net value as of the last market day
of the previous quarter with the exception of certain alternative investments that will be valued one
quarter behind. This means that if your annual fee is 1.00%, then each quarter we will
multiply the value of your account by 1.00% then divide by the number of days in the year and then
multiply by the number of days in the upcoming quarter to calculate our fee. Once the calculation is made,
we will instruct your account custodian to deduct the fee from your account and remit it to MCP. Fees
are not necessarily based on a calendar quarter. Rather, fees for each client may be based on quarters
specific to that client. For example, if a client becomes a client in February, instead of being charged for
the balance of the first quarter, and then for each subsequent calendar quarter thereafter, they may be
charged for the quarter of February, March and April. In that case, their next billing will be May, June and
July, and so on. Deposits and/or withdrawals of $10,000 or more made during the calendar quarter will be
prorated and charged or rebated in advance (arrears), as applicable.
Clients whose fees are directly debited will provide written authorization in the investment advisory
agreement to debit advisory fees from their accounts held by a qualified custodian chosen by the client.
The client will receive a statement from their account custodian showing all transactions in their account,
including the fee.
If a client engages MCP to provide asset management services during a quarter, the client will pay a
management fee for the number of days left in that quarter. If a client terminates the relationship during
a quarter, the client will be entitled to a refund of any management fees for the remainder of the quarter.
Once a notice of termination is received, MCP will refund the unearned fees to the client in whatever way
the client prefers (check, wire back to your account).
Other Fees
In addition to the fees outlined above, a separate platform fee of up to .25% is charged which covers the
firm's technology platforms used for billing, reporting and accessing a wide field of money managers. This
fee will be levied in addition to the MCP’s advisory fee assessed for investment management services and
any fee charged by subadvisors utilized on the Envestnet platform and is not billed as a separate line item.
Unless clients direct otherwise or an individual client’s circumstances require, MCP generally recommends
one of several unaffiliated custodians to serve as the broker‐dealer/custodian for client investment
accounts. Broker‐dealers such as those listed above may charge brokerage commissions and/or transaction
fees for effecting certain securities transactions. For example, these custodians may charge commissions
for individual equity and fixed income securities transactions or fees may be charged for certain no‐load
mutual fund transactions. In addition to the Adviser’s investment management fee, custodial brokerage
commissions and/or transaction fees, clients will also incur, relative to all mutual fund and exchange traded
fund purchases, charges imposed at the fund level (e.g., management fees and other fund expenses).
Morse Capital Partners invests certain qualified clients in Private Funds (e.g. Private Equity Funds, Hedge
Funds, etc.) depending on their risk tolerance and investment goals. Clients should be aware that
investments in Private Funds generally carry additional fees in addition to Morse Capital Partners asset
management fee. These additional fees may be in the form of fund expenses, incentive fees, carried interest,
etc.
Morse Capital Partners uses Mutual Funds to diversify client holdings and provide broader exposure to
certain markets depending on the clients risk profile and goals. Mutual Funds are generally offered in
different share classes (e.g. A Shares, I Shares, etc.) with varying fee structures, including share classes with
sales load, sales charges or 12B‐1 fees. Morse Capital Partners strives to use the lowest fee share class in
most circumstances, however on occasion Morse Capital Partners does not meet certain criteria to purchase
I shares or similarly offered low expense share classes. In these cases, the Adviser will use a higher fee share
class that may carry a 12B‐1 fee. 12B‐1 fees are deducted from the client’s mutual funds’ assets on an
ongoing basis and are paid to the client’s broker‐dealers / custodians. On a regular basis the Firm will review
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