Item 5 - Fees and Compensation
Type of Compensation
Advisory
Springwater is generally compensated for investment services by:
• A percentage of assets under management.
• Fixed fees (other than subscription fees).
• Portfolio Consulting Services.
Springwater is available to manage investment advisory accounts for a variety of individual and
institutional clients on both discretionary and non-discretionary bases, subject to investment
guidelines in our investment advisory contract. All fees are subject to negotiation. The amounts
and specific way fees are charged are negotiated and memorialized in Springwater’s contract with
our clients. Although many fees are individually negotiated, some common fees are included on
our fee schedule for your review and described below:
Fee Schedule
Fee Type Fee Cost When Charged
Advisory Fees Computed as a percentage of the average gross assets under Quarterly, in arrears
management in the account for the previous quarter
including any margin debt in the account.
Equity & Balanced
$1,000,001-$5,000,000 1.00%
$5,000,001-$15,000,000 .75%
$15,000,001- $50,000,000 .50%
Fixed Income - High Income Strategy
$1,000,000-$5,000,000 .75%
$5,000,001- $15,000,000 .65%
$15,000,001- $50,000,000 .50%
Fixed Income – Conservative Strategy
$1,000,000-$15,000,000 .25%
$15,000,001- $50,000,000 .15%
We prepare written financial and estate plans, which
Financial and Estate Either a one-time fee or an
include additional monitoring services, recordkeeping,
Planning and annual assessment as
portfolio valuation, and performance reviews. Our fee for
Monitoring agreed upon with each
the preparation and monitoring of these plans ranges from:
specific client
$1,000.00 to $20,000.00.
10 | P a g e
The advisory fee paid to Springwater is a fee equal to the Quarterly in arrears
Sub Manager Program
Advisory Fees set out above. Springwater will pay between
30% and 60% of its advisory fee to the Sub-Manager.
Portfolio Consulting Negotiated on a fixed fee basis based on services to be
Fees provided and the scope of engagement.
Quarterly, in arrears
Annual Fee Range: $20,000.00 to $80,000.00
Transaction fees The client may be charged additional fees to cover specific Contemporaneously
(included, but not clearing and/or transactional services. Such charges are
limited to commission, disclosed in the investment advisory agreement and agreed
commission equivalents, to by the client in advance.
mark-ups, mark-downs,
credits, and/or dealer Transaction fees vary from client to client due to the client’s
spreads) particular circumstances, additional or differing levels of
service, or as otherwise contractually agreed upon with
specific clients. Springwater will receive transaction-based
compensation from clients for such transactions. Employee-
related accounts may pay transaction fee rates that are lower
than those of other clients.
Clients generally authorize us to directly debit fees from their accounts. Management fees are
payable quarterly in arrears. Accounts initiated or terminated during a calendar quarter will be
charged a prorated fee. Generally, investment advisory contracts may be terminated by clients at
any time. All fees are subject to negotiation.
Additional Types of Fees and Expenses
We are affiliated through common ownership with Herndon Plant Oakley LTD (“HPO”),
which is registered as a broker-dealer with the SEC and various state jurisdictions and is a member
firm of the Financial Industry Regulatory Authority (“FINRA”). HPO introduces its customers to
RBC Clearing & Custody, a division of RBC Capital Markets, LLC (“RBC Clearing” or
“Custodian”), on a fully disclosed basis, which is the qualified custodian for our clients’ advisory
accounts. Due to the business relationship between RBC Clearing and HPO, RBC Clearing shares
a portion of certain transaction costs and fees you pay to RBC Clearing with HPO. The
compensation HPO receives in connection with certain transactions and services is an additional
source of revenue to our affiliate and defrays our costs associated with maintaining and servicing
client accounts, and includes compensation to the HPO. However, it presents a conflict of interest
because Springwater has a greater incentive to make available, recommend, or make investment
...