Raymond James USA Ltd

Item 5: Fees and Compensation

Raymond James (USA) Ltd. is compensated for the advisory services described in this wrap fee brochure. The
fee will be charged quarterly in advance, based on the amount of the assets managed by the firm as of the
opening of business on the last business day of each quarter. Fee schedules for the firm and account minimums
can be found in this section. Clients may negotiate asset-based fee with their financial advisor, and such a
decision is at the discretion of the financial advisor. Factors involved in this negotiation may include the nature
and size of the overall client relationship with the financial advisor, the level and type of advisory or other
financial services being or expected to be provided, and Raymond James’ or its affiliates’ policy with respect
to discounts. The client should understand that unless a lower rate has been negotiated, Raymond James will
charge fees based upon the applicable standard fee schedule detailed below for each advisory account program.
While the asset-based fees are negotiable, the standard fee schedule’s asset-level breakpoints and each
applicable fee rate may not be modified in any way. An inherent conflict exists in how Raymond James
handles billing variations from the applicable fee schedule as compensation adjustments can result in higher
compensation to the financial advisor from one advisory program to another. Clients may pay us more or
less than he/she might otherwise pay if the same services were purchased through another service provider.
Clients may negotiate fees with different breakpoints and as a result, may pay a higher fee than as listed in the
standard fee schedule detailed below (but not more than the program’s maximum fee) as a result of fluctuations

Form ADV Part 2A/2B: Investment Adviser Wrap Fee Brochure and Brochure Supplements
Raymond James (USA) Ltd

FORM ADV Uniform Application for Investment Adviser Registration

in the client assets under management and/or account performance. The client is generally assessed an all-
inclusive wrap fee, set forth as follows:

STANDARD FEE SCHEDULE FOR AMBASSADOR PROGRAMS

 Asset Levels                                             Management Fee
 0 - $500,000                                             2.25%
 $500,001 - $1,000,000                                    1.75%
 $1,000,001 - $3,000,000                                  1.50%
 $3,000,001 - $5,000,000                                  1.25%
 $5,000,001 +                                             1.00%

 Item 6: What Your Client Should Know About Fee-Based Accounts

By choosing to pay a fee based on assets rather than transactions, clients should understand that the fee may
be higher than a per transaction commission cost during periods of lower trading activity.

Clients should also understand the annual fee charged in advisory accounts is in addition to the management
fees and operating expenses charged by open-end, closed-end and exchange-traded funds. To the extent that
clients intend to hold fund shares for an extended period of time, these internal fund expenses should be added
to the annual advisory fee when evaluating the costs of a fee-based account. Additionally, certain mutual fund
families impose short-term trading charges (typically 1% to 2% of the original amount invested), which are
generally NOT waived for fee-based accounts.

Fees are prorated for such accounts beginning on any date other than a quarterly start date. All fees remain
negotiable, but at the sole discretion of the firm. Per written agreement/authorization, management fees will
be deducted by the firm from client accounts.

Clients may incur additional fees or expenses in addition to the management fees charged by RJLU. Accounts
with assets invested in mutual funds may incur expenses related to these investments, which may include
marketing and distribution charges. Further, fees may be charged by the brokerage firm and/or custodian
associated with the account for services provided to the account. Additional information about the brokerage
and custodial services recommended by RJLU may be found under Item 12 of this wrap fee brochure.

The firm’s investment adviser representatives may also be registered representatives of RJLU in its capacity
as a FINRA member broker-dealer. As such, these individuals are entitled to receive compensation, generally
in the form of commissions, for the sale of securities-related products, including mutual funds. Where one of
the firm’s investment adviser representatives makes a recommendation to a client, or transacts for a client on
a discretionary basis, that may result in receipt of commissions or other sales-related compensation. This
practice could potentially present a conflict of interest and gives the representative an incentive to recommend
investment products based on the compensation received, rather than on the client’s needs. Where available
and appropriate, RJLU’s investment adviser representatives will transact in, or recommend investment in, load-
waived or no-load mutual funds to avoid this conflict of interest.

Form ADV Part 2A/2B: Investment Adviser Wrap Fee Brochure and Brochure Supplements
Raymond James (USA) Ltd

FORM ADV Uniform Application for Investment Adviser Registration

In certain cases, the firm may reduce the amount of advisory fees charged where the receipt of commission-
based compensation presents fair and equal payment for services rendered. This determination remains the
sole decision of RJLU. In cases where portfolio assets pay a 12b-1 fee, the firm will have those fees credited
to the client account in essences reducing net advisory fees charged. Where the receipt of this additional non-
advisory-related compensation presents a conflict of interest, RJLU monitors the business activities of its
associated personnel to ensure that such persons refrain from favoring such incentive-based arrangements.
...