Item 5 – Fees and Compensation
Clients engage Tradition to provide investment management services on a fee-only basis. Upon
engagement, Tradition shall charge an annual investment management fee based upon a
percentage of the market value of the assets being managed by Tradition. The investment
management fee charged shall vary (between 0.30% and 1.50%, see below) depending upon the
market value of assets under management, the specific type of investment management services to
be rendered, and other services provided, payment for which may be included in the management
fee.
Tradition’s fees are based on assets under management. For Tax-exempt accounts of some
corporate entities and for taxable and individual accounts, equity and balanced accounts, certain
legacy fee schedules may be in effect based on prior negotiated contractual relationships.
The base fee schedule below are annualized rates, which may be modified depending on client
needs or requests for additional services:
1.00% on the first $5,000,000 of assets managed
0.80% on assets over $5,000,000
Fees may be negotiated if circumstances related to each account or relationship warrant.
The specific manner in which fees are charged by Tradition is established in a client’s written
agreement with Tradition. Clients may elect to be billed directly for fees or to authorize Tradition
to directly debit fees from client accounts. Both Tradition's Investment Advisory Agreement and
the custodial/clearing agreement shall authorize the custodian to debit the account for the amount
of Tradition's investment management fee and to directly remit that management fee to Tradition.
Tradition will generally bill its fees on a quarterly basis, Tradition’s annual investment
management fee shall be prorated and billed quarterly in advance or in arrears, based upon
the market value of the assets on the last business day of the quarter that services are
rendered. Other fees such as investment consulting fees, if any, may be charged for advice
rendered on investment and other financial accounts outside the purview of any contract or
agreement, at the request and acquiescence of any client. Included in such consulting fees may be
those charged for independent planning services.
Tradition’s fees are exclusive of brokerage commissions, transaction fees, and other related costs
and expenses which shall be incurred by the client. Clients may incur certain charges imposed by
custodians, brokers, third party investment 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 Tradition’s fee, and Tradition shall not receive any portion of these commissions,
fees, and costs.
Tradition generally requires a $1 million per client minimum for investment management services.
Tradition, in its sole discretion, may charge a lesser management fee or waive the $1 million client
minimum based upon certain criteria (i.e. anticipated future earning capacity, anticipated future
additional assets, dollar amount of assets to be managed, related accounts, account composition,
negotiations with client, accounts referred to adviser by an existing client, another investment
professional, or firm etc.)
Item 12 further describes the factors that Tradition considers in selecting or recommending
broker-dealers for client transactions and determining the reasonableness of their compensation
(e.g., commissions).
PLANNING AND FINANCIAL ANALYSIS FEES
Review services are generally charged on a per assignment basis as negotiated with each client. We
will apply our planning or retainer fee towards the wealth management fee when appropriate on a
full or prorated basis depending on circumstances and timing, at the discretion of Tradition.
TERMINATION OF SERVICES
The Investment Advisory Agreement may be terminated by either Tradition or the client by 5 days’
notice to the other. Client shall be entitled to a pro-rata reimbursement of any pre-paid investment
management fees, and any earned, unpaid fees will be due and payable.