Item 5 – Fees and Compensation
How and When Fees Are Charged and Collected
The specific manner in which fees are charged by Solaris Asset Management is established in each
client’s written investment management agreement with Solaris. Fees for investment management
services are typically payable quarterly in advance and are based on the market value of the assets on the
first day of each quarter. Upon inception or termination, the fees are pro-rated for any partial period. In
order to permit timely settlements of any pending trades, contracts are generally terminable on five (5)
days’ notice. Typically the client authorizes fees to be charged and debited directly from the client’s
custody account.
Fees We Charge
We typically charge clients the following fees for the investment management services set forth in Item 4
above titled “Advisory Business”: For institutional accounts the fees for equity investment services are:
1% on the first $10,000,000; 0.80% on the next $40,000,000; and 0.60% above $50,000,000. For
individual accounts the fees for equity investment management, equity related assets and asset allocation
services and investing are: 1.25% up to $1,000,000 of all assets; over $1,000,000 and up to $4,000,000
1% of all assets; over $4,000,000 and up to $8,000,000 0.85% of all assets; and over $8,000,000 0.75% of
all assets. Fees for separate account traditional bond investment management services are 0.50% on the
first $2,500,000 of fixed income assets; 0.40% on the next $2,500,000 of fixed income assets; and 0.3%
above $5,000,000 of fixed income assets. Fees and the time and manner of payment are negotiable based
on services provided, amounts involved, historic relationships or other considerations. Solaris Asset
Management, in its sole discretion, may charge a greater or lesser investment management fee and/or
reduce or waive its aggregate account minimum based upon certain criteria (i.e. anticipated future earning
capacity, anticipated future additional assets, dollar amount of assets to be managed, related accounts,
historic relationships, account composition, negotiations with client, etc.).
What Our Fees Don’t Include
Clients incur certain charges imposed by custodians, brokers, third-party investments and other third
parties such as fees charged by managers, custodial fees, deferred sales charges, 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. Such charges, fees and commissions are exclusive of and in
addition to our fees.
Compensation that SAM Does Not Receive
SAM does not accept or receive compensation from third parties from the sale of securities or other
investment products, including asset-based sales charges or service fees from the sale of mutual funds or
any portion of these fees and costs. Such practice presents a conflict of interest because it creates an
incentive to recommend investment products based on the compensation received rather than the client’s
Solaris Asset Management, LLC Form ADV Part 2A 2019
needs. According it is SAM’s policy not to accept such compensation.
Factors That We Consider in Selecting Brokers and Dealers