Mutual Trust Asset Mgmt Inc

ITEM 5 FEES AND COMPENSATION
  •    When engaging a person to provide
       services for a Client, exercise reasonable   Description
       care to protect the Client’s interests.      Mutual Trust Asset Management’s compensation
                                                    comes from three sources, Investment
When selecting or using and recommending            Management Fees, Performance-Based Fees, and
technology MTAM shall document the due-             Financial Planning services. Each client’s fees are
diligence process which will include:               outlined in their fee schedule. The following is the
  • Exercising reasonable care and judgment         general structure for our fees. We reserve the
      when selecting, using, or recommending        right to modify the fee structure that could be
      any software, digital advice tool, or other   different from what is listed below. The specific
      technology while providing Professional       fee structure for each client will be outlined in
      Services to a Client.                         their fee agreement.

 •    Having   a    reasonable   level   of         Investment Management Fees
      understanding of the assumptions and          Annual fees are calculated as a percentage of

assets under management, which includes              account opening may be charged performance-
accrued interest where applicable. Fees are          based fees under the terms of the Investment
negotiable based on the client’s circumstances       Advisory Agreement.
and requirements and range from 1% to 2.5%,
depending upon the services rendered. All fees       Performance-based fees are investment advisory
are payable at the end of each quarter on the        fees that are charged based on a share of capital
ending balance of assets under management for        gains or capital appreciation of a client's account.
that previous quarter. The clients will authorize    The fixed portion of the investment advisory fee
MTAM to deduct the fees directly from their          will not exceed 25% of the account balance
custodial account. These services can possibly be    payable quarterly in advance. The performance
found elsewhere at a lower cost. If client cancels   investment advisory fee is generally equal to a
the services of firm within five (5) business days   maximum of 10% of the net increase in the
of contracting with MTAM for investment              account value (adjusted for additional
management services or if client cancels the         investments, redemption and other non-
services of MTAM before five (5) business days       performance related changes) for the preceding
from the start of a new quarter, no fees will be     month (or portion thereof if less than a month). In
charged to the client. If client cancels the         general, Performance-based investment advisory
services of MTAM after five (5) business days        fees are calculated and charged quarterly in
from after contracting for services or after the     arrears. In certain instances, performance-based
beginning of a new quarter, the firm will deduct     investment advisory fees are calculated monthly
directly from the client account a pro-rata          and charged quarterly in arrears, therefore an
amount. The pro-rata amount will be based upon       account may incur an investment advisory fee for
the amount of days the client’s account was          a given month during a quarter even though the
managed for the quarter and the value of the         account value at the quarter-end may be below
client account on the date of termination. When      the account value at the beginning of the quarter.
sub-advisors are used, the client will pay a         The client is provided with a detailed
portion of the fee to both MTAM and the Sub-         performance-based investment advisory fee
Advisor. MTAM will direct debit our fees, and the    calculation on a quarterly basis.
Sub-Advisor will direct debit their fee through an
advisory platform. The specific way in which fees    Investment advisory fees will be adjusted for
will be deducted will be outlined in the client’s    deposits and withdrawals made during the 12-
agreement. Upon termination of the Sub-              month period. In the event the client makes a
Advisor, any prorated amount and/or                  complete withdrawal from the account on a date
termination fees earned by the sub-advisors will     other than year-end, investment advisory fees will
be direct debit from the client’s account. In        be due at the time of withdrawal. Refer to the Fees
addition to fees charged by MTAM, clients will be    and Compensation section above for additional
assessed transaction charges by the brokerage or     information on performance-based investment
custodian where the client's account is              advisory fees.
maintained. For a further discussion on
brokerages, please see the section of this           MTAM manages accounts that are charged
document entitled Brokerage Practices on page        performance-based investment advisory fees
ten (10) of this document.                           while at the same time managing accounts that
                                                     may also have similar objectives that are not
Performance-Based Fees                               charged performance-based investment advisory
MTAM may charge side-by-side management or           fees. Charging performance-based investment
performance-based fees to certain clients under      advisory fees and non-performance based
the terms of the Investment Advisory                 investment advisory fees at the same time creates
Agreement. Generally, clients having a net worth     a conflict of interest, which is described in the
greater than $2,200,000 or clients where MTAM        following paragraphs.
manages at least $1,100,000 in assets upon
...

ITEM 7 TYPES OF CLIENTS
the firm in writing, verbally, or by other means,
such as by initiating a change in Investment
                                                        MTAM provides services to individuals, families,
Management authorization at their custodian.
                                                        trusts and estates, retirement plans, charitable
Clients terminating their accounts should seek
                                                        organizations, and small businesses. Client
a confirmation of receipt of termination from us
                                                        relationships vary in scope and length of service.
to ensure the communication was received by

                                                   whereby we may slightly overweight or
MTAM generally requires a minimum of               underweight asset classes based on valuations,
$100,000 in assets under management for            sentiment, and anticipation of movements in
investment management. We reserve the right        the financial markets. We will normally
to waive the minimum on a case-by-case basis.      combine these two strategies when managing
                                                   client accounts. This also includes adding