Item 5 – Fees and Compensation
In certain circumstances, all fees, account minimums and their applications to family
circumstances may be negotiable. Minimum account sizes may also be waived when a
person demonstrates an ability to meet the minimum account size in a reasonable period of
time through additional contributions.
Shoreline has contracted with Focus Partners Advisor Solutions for services
including trade processing, collection of management fees, record maintenance, report
preparation, marketing assistance, and research. Shoreline pays a fee for Focus Partners
Advisor Solutions services based on client management fees paid to Shoreline on accounts
where Focus Advisor Solutions services are used. The fee paid by Shoreline to Focus
Partners Advisor Solutions consists of a portion of the fee paid by clients to Shoreline and
varies based on the total client assets participating in Focus Partners Advisor Solutions
through Shoreline. These fees are not separately charged to advisory clients.
The specific manner in which fees are charged by Shoreline is established in a client’s
written agreement with Shoreline. Wealth Advisory and Employee Benefit Plan clients will
be invoiced in advance at the beginning of each calendar quarter based upon the value
(market value based on independent third party sources or fair market value in the
absence of market value; client account balances on which Shoreline calculates fees may
vary from account custodial statements based on independent valuations and other
accounting variances, including mechanisms for including accrued interest in account
statements) of the client’s account at the end of the previous quarter. New accounts are
charged a prorated fee for the remainder of the quarter in which the account is incepted
(date of first trade).
For Wealth Advisory and Employee Benefit Plan Services, Shoreline will request authority
from the client to receive quarterly payments directly from the client's account held by an
independent custodian. Clients may provide written limited authorization to Shoreline or
its designated service provider, Focus Partners Advisor Solutions, to withdraw fees from
the account. Clients will receive custodial statements showing the advisory fees debited
from their account(s). Certain third-party administrators will calculate and debit
Shoreline’s fee and remit such fee to Shoreline.
A client may terminate an agreement without penalty by providing written notice of such
cancellation to Shoreline within five (5) business days of the date hereof (the “Grace
Period”). Thereafter, either party may terminate this Agreement without penalty upon
thirty (30) days-notice in writing to the other party. Termination of this Agreement will not
affect (a) the validity of any action previously taken by Shoreline under this Agreement; (b)
liabilities or obligations of the parties from transactions initiated before termination of this
Agreement; or (c) Client’s obligation to pay advisor fees (prorated through the date of
termination). On the termination of this Agreement, Shoreline will have no obligation to
recommend or take any action with regard to the securities, cash or other investments in
the Account. Upon termination of an agreement, Shoreline will calculate the number of
days left in a quarter and provide a refund to the client of those pre-paid, unearned fees
from the date of termination. This refund will be provided to the client directly into the
client’s brokerage account or via check.
Shoreline’s fees are exclusive of brokerage commissions, transaction fees, and other related
costs and expenses which shall be incurred by the client. Clients may incur certain charges
imposed by custodians, brokers, third party investment and other third parties such as fees
charged by managers, custodial fees, odd-lot differentials, transfer taxes, wire transfer and
electronic fund fees, and other fees and taxes on brokerage accounts and securities
transactions. Mutual funds and exchange traded funds also charge internal management
fees, which are disclosed in a fund’s prospectus. These fees will generally include a
management fee and other fund expenses. All fees paid to Shoreline for investment
advisory services are separate and distinct from the fees and expenses charged by mutual
funds and ETFs to their shareholders.
Such charges, fees and commissions are exclusive of and in addition to Shoreline’s fee, and
Shoreline shall not receive any portion of these commissions, fees, and costs.
Neither Shoreline nor any Supervised Person of Shoreline receive any compensation,
including any commissions or markups, for the sale of securities or other investment
products.
Advisory Fees
Wealth Advisory Services:
The annual fee for wealth advisory services will be charged as a percentage of assets under
management, according to the schedule below:
Assets under management Annual Fee (%)**
First $500,000 1.25%
Next $500,000 .90%
Next $1,000,000 .70%
Next $1,000,000 .50%
Next $2,000,000 .40%
Over $5,000,000 .35%
All accounts for members of the client’s family (husband, wife and dependent children) or
related businesses may be assessed fees based on the total balance of all accounts.
Employee Benefit Retirement Plan Services:
The annual fee for plan services will be charged as a percentage of assets within the plan.
Value of Included Shoreline Annual Focus Partners Total Fee**
Assets Fee Advisor Solutions
Annual Fee
On the first $1 million 0.80% 0.20% 1.00%
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