Item 5: Fees and Compensation
It is Seneca’s goal to provide investment management and ongoing portfolio monitoring to all clients as well as
comprehensive financial planning to those clients who participate in the financial planning process. All clients will
be required to execute an Investment Advisory Agreement that will describe the type of services to be provided and
the associated fees.
Asset-Based Fees
Fees for investment advisory services are based on assets under management. The Advisory Fee for the initial period
will be paid, on a pro rata basis based on the number of days remaining in the billing period, in arrears, based on
the billing period ending value of the Client’s assets, in accordance with the fee schedule listed in an Investment
Advisory Agreement between Seneca and the client. For subsequent periods, the Advisory Fee will be assessed and
payable each billing period, in advance, based on the balance of the Client’s assets as of the prior period-end, in
accordance with the fee schedule listed in an Investment Advisory Agreement. For new clients, this means that the
first billing cycle will typically consist of an arrears billing (prorated for services provided in the initial partial
period) and an advance billing (for services to be provided over the upcoming billing period). Fees for directly-
managed accounts are generally assessed on a monthly basis, and fees for unaffiliated private investments and other
held-away assets are generally assessed on a quarterly basis, unless otherwise agreed with the client in writing.
The asset-based fee schedules appearing in this section are applied in tiers. Using the below fee schedule as an
example, a client placing $750,000 under Seneca’s management in an individual account engagement will incur a
1.50% annual fee on the first $500,000 in assets and a 1.20% annual fee on the remaining $250,000.
Seneca’s Advisory Fee schedule for individual account asset management services will typically be as follows:
Household AUM Annual
Fee
Up to $500,000 1.50%
$500,001 to $1,000,000 1.20%
$1,000,001 to $5,000,000 0.90%
$5,000,001 to $10,000,000 0.75%
$10,000,001 and greater 0.60%
Seneca’s Advisory Fee schedule for unaffiliated private investments and other Held-Away assets (such as 401(k)
accounts) will typically be as follows:
Household AUM Annual
Fee
Up to $300,000 0.50%
$300,001 to $500,000 0.40%
$500,001 to $1,000,000 0.25%
$1,000,001 and greater 0.20%
The fee schedules reflected here are a guide. Fees are negotiable based on the nature of the account. Factors affecting
a client’s fee schedule may include the size of the account, complexity of asset structures, and other factors. All
clients, but especially those with smaller accounts, should be advised they may receive similar services from other
professionals for higher or lower overall costs.
Unless otherwise agreed upon with the client, the value of any unaffiliated private investment and any Held-Away
assets will be included in assets under management for the purposes of calculating Seneca’s asset-based fees. In
calculating asset-based fees, the value(s) for all unaffiliated private investments owned by the client shall reflect the
more recent of the client’s initial investment amount or the most recent valuation provided by the investment’s
sponsor or issuer. The current value of any private investment could be significantly more or less than the original
purchase price or the price reflected in any account report.
Seneca generally assesses an annual fee of 1.00% to its affiliated private fund, payable on a quarterly basis, in
arrears, based on the value of the investor’s initial capital commitment. Seneca is also entitled to a share of carried
interest, which is discussed further in Item 6 below. A recommendation to invest in Seneca’s affiliated private fund
presents a conflict of interest, in that Seneca is generally entitled to receive asset- and performance-based
compensation from the affiliated fund. Seneca seeks to mitigate this conflict of interest by providing full and fair
disclosure to fund investors, not assessing its advisory fee to the client with respect to investments made in the
affiliated private fund, and by strictly adhering to compliance policies and procedures and supervisory oversight
requirements that mandate that Seneca provide advice solely in the client’s best interest, without subserviating the
client’s interests to its own.
Fees paid to Seneca are separate and distinct from the fees and expenses charged by mutual funds, exchange-traded
funds, and private funds to their shareholders.
Financial Planning
A financial plan is designed to help the client with all aspects of financial planning with or without on-going
investment management after the financial plan is completed. Clients with at least $1,000,000 in assets under
Seneca’s management are generally eligible for financial planning services at no additional cost. In other cases, fees
for financial planning services may be offered on an hourly or fixed fee basis.
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