Item 5 – Fees and Compensation
INVESTMENT SUPERVISORY SERVICES ("ISS")
INDIVIDUAL PORTFOLIO MANAGEMENT
Fees for an advisory client are generally based upon an annual percentage of the total value of their assets
under management. Unless otherwise stated in the client’s Investment Advisory Agreement(s), the firm’s
general fee schedule is as follows:
• 1.50% per year for the first $2,000,000 of assets under management
• 1.00% per year for all assets under management over $2,000,000
The firm’s minimum initial account size is $1,000,000. However, the firm, may, in its sole discretion opt to
accept advisory clients with an account size below the $1 million thresholds.
Separately Managed Accounts (SMAs) Programs offered through third-party providers are exempt from our
minimum account sizes and subject only to the SMA provider’s minimums, which may vary.
Our management fees are payable monthly in arrears, based on the total market value of the assets under
management on the last business day of the preceding calendar month. For new accounts, the monthly
fees are prorated for the initial calendar month and billed from the time adviser agreement becomes
effective (generally, the date of funding).
Fees are deducted from the client's account and can be verified by the client on his or her custodial account
statement. If services are discontinued, a prorated portion of that calendar month's fee will be charged to
the client. Prices for publicly traded assets are available through electronic download on a daily basis.
However, daily prices may not be available for certain assets, such as some annuities, insurance products,
private equity or partnership assets, other illiquid investment vehicles, etc. In such cases, less frequent
valuations (typically the quarter-end asset values) may be used in calculating that particular asset’s value
for billing purposes at the end of the month. Also, in these instances, the firm may determine the valuation
of certain assets by using unaudited financial statements or the cost basis of the investment.
Finally, the firm’s fees may be negotiable on a limited basis, dependent on the situation and at the discretion
of the adviser. In some circumstances, Stonnington may consider charging a fixed dollar amount rather
than a percentage of AUM or an alternative form of fee arrangement which will be detailed in the Addendum
page of the Adviser Agreement.
FEES FOR MONITORING of THIRD-PARTY MONEY MANAGERS
Our fee is based on a percentage of the client's total managed assets. The portion of the advisory fee paid
to us does not decrease the client's total advisory fee paid to the selected independent investment adviser.
The total asset management fee, including the fee paid to our firm, is disclosed in the independent
investment adviser's disclosure document, which is provided to clients.
Lord Abbett Fee Structure: For those accounts currently under Third Party Management, the fee is
.1 per cent annually for Lord Abbett’s Passive Ladder Strategy. “Active” strategies will incur a different fee
structure.
GENERAL NOTES ON ADVISORY FEES
Termination of the Advisory Relationship
If for any reason, a client wishes to terminate an investment advisory agreement in the first five business
days after entering the agreement, the client will be entitled to a full refund of any fees paid to Stonnington
under that agreement. After the first five business days, Stonnington or the client may terminate the
agreement at any time with at least 30 days written notice to the other. In such cases, the fee will be
prorated for the billing period between the 1st of the month and the date a notice of termination is effective.
To ensure clear communication, we request a termination notice be in writing. If Stonnington chooses to
terminate the agreement, such notice will be in writing.
Negotiability of Advisory Fees
As noted briefly above, although Stonnington has established the aforementioned fee schedule, we retain
the discretion to negotiate alternative fees on a client-by-client and/or account-by-account basis. Client
facts, circumstances, and needs are considered in determining their fee schedule. These include the
complexity of the client’s assets to be placed under management, anticipated future additional assets;
related accounts; portfolio style, account composition, and reports, among other factors. The specific
annual fee schedule is identified in the contract between the adviser and each client.
We may group certain related client accounts for the purposes of achieving the minimum account size
requirements and determining the annualized fee. Discounts, not generally available to our advisory clients,
may be offered to family members and friends of associated persons of our firm at our sole discretion.
Changes to a Client’s Fee
The firm may change an advisory client’s fee schedule in its investment advisory agreement by providing at
least 45 days’ written notice to that client.
Mutual Fund and Exchange-Traded Fund (“ETF”) Fees
All fees paid to Stonnington for investment advisory services are separate and distinct from the fees and
expenses charged by mutual funds and/or ETFs to their shareholders. The fund fees and expenses are
described in each fund's prospectus and may also vary depending on the Fund’s share class.
Mutual funds generally offer multiple share classes available for investment based upon certain eligibility
and/or purchase requirements. For instance, in addition to retail share classes (typically referred to as Class
A, B, or C shares), mutual fund companies may also offer institutional share classes or other share classes
that are specifically designed for purchase by investors who meet certain specified eligibility criteria,
including, for example, whether an account meets certain minimum dollar amount thresholds or is enrolled
in an eligible fee-based investment advisory program. Institutional share classes usually, but not always,
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