Item 5 - Fees and Compensation
Asset Based Fees
SouthernSun provides investment advisory services for its clients for a fee based upon assets
under advisement. The specific manner in which fees are charged by SouthernSun is
established in a client’s written agreement with SouthernSun. SouthernSun generally bills
its fees on a quarterly basis in arrears although some clients may elect to pay fees in advance.
Clients may elect to be billed directly for fees or to authorize SouthernSun to notify the
custodian of the account to deduct advisory fees directly from client accounts. If there are
significant cash flows of ten percent (10%) or greater during the quarter, it will result in one
or more interim calculations and adjustments (upwards or downwards) to the fees for that
quarter unless otherwise stated in the client agreement. There is no acceptance or
termination fee charged. Unless otherwise agreed, services are cancelable by either party by
written notice signed by an authorized representative of the terminating party; provided
that in the case of a termination of an agreement by a client: 1) it shall be the client’s exclusive
responsibility to issue written instruction to SouthernSun regarding the termination date
and any assets held in the account, and 2) SouthernSun may continue to manage the account
for a period of up to two (2) business days until such instructions and termination notice are
verified. After a client’s instructions and termination notice are verified, SouthernSun will
continue to manage the account through the termination date, unless otherwise instructed
by the client. The client shall be obligated to continue paying fees to SouthernSun, through
the termination date, on a pro-rata basis, in accordance with the pertinent fee schedule. If
applicable, however, a pro rata refund will be made by SouthernSun to the client, upon
termination, of all fees paid in advance.
SouthernSun’s management fees are exclusive of brokerage commissions, transaction fees,
and other related costs and expenses which shall be incurred by the client. Clients may also
incur certain charges imposed by custodians, brokers, and other third parties such as
custodial fees, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and
other fees and taxes on brokerage accounts and securities transactions. These fees are not
collected by SouthernSun, but instead are paid, according to the custodian’s direction, to the
appropriate service provider from the client’s account.
Item 12 further describes the factors that SouthernSun considers in selecting or
recommending broker-dealers for client transactions and determining the reasonableness
of their compensation (e.g., commissions).
Fee Schedules
Small Cap Strategy - Minimum separately managed account size is $5,000,000 with a minimum annual fee
of $50,000.
Assets Fees
First $50 million 1.00% (100 basis points)
Next $50 million 0.95% (95 basis points)
Excess 0.90% (90 basis points)
SMID Cap Strategy - Minimum separately managed account size is $5,000,000 with a minimum annual fee
of $45,000.
Assets Fees
First $50 million 0.90% (90 basis points)
Next $50 million 0.85% (85 basis points)
Excess 0.75% (75 basis points)
SouthernSun may at its discretion waive the minimum account size or negotiate a fee which
is more or less than indicated in the fee schedules. The fee schedule may vary due to servicing
requirements, account inception date, and other factors. Further, SouthernSun may choose,
at its discretion, to rebate or waive the collection of all or a portion of its management fee.
SouthernSun serves as the adviser to the SouthernSun Small Cap Fund and the SouthernSun
U.S. Equity Fund (together, the “SouthernSun Funds”). Information concerning the
SouthernSun Funds, including a description of the services provided and advisory fees, is
contained in the SouthernSun Funds’ prospectus. Other fees payable as an investor in the
SouthernSun Funds are described in the SouthernSun Funds’ prospectus. Furthermore,
SouthernSun acts as a sub-adviser to other investment companies and other types of pooled
investment vehicles. In its capacity as sub-adviser, SouthernSun’s fees and services are
determined by contract with the adviser. Information concerning these sub-advised funds,
including a description of the services provided and advisory services and expenses, is
generally contained in each fund’s offering documents (e.g., prospectus or offering
memorandum), which can be obtained from the fund sponsor.
Other Fee Information
Employees of SouthernSun and their families receive investment advisory services for a
reduced fee or without charge.
Clients in wrap fee programs generally pay the wrap program sponsor a single fee (called a
“wrap fee”) for consulting, brokerage, custodial, portfolio monitoring and investment
management services. The fees paid by clients for investing in a wrap fee account are set by
the sponsor and are generally disclosed in the sponsor’s contract established with each
client. The sponsoring firm then pays SouthernSun a portion of this wrap fee.
For detailed information on the wrap fees charged by each wrap fee program sponsor, please
refer to the specific sponsor’s Form ADV Part 2A, Appendix 1. For additional information
with respect to wrap fee programs, please see the sub-section entitled “Wrap Fee Programs”
under Item 4 of this Brochure.
Other Investment Advisory Programs
SouthernSun also provides investment advice not involving discretionary management
services, such as multi-manager, multi-discipline investment products and diversified
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