Item 5 – Fees and Compensation
Trillium manages assets for clients seeking discretionary portfolio management services.
Each such client receives personalized investment management services based on an
analysis of the client’s financial circumstances, income requirements, risk tolerance,
investment objectives and social concerns.
Fees are subject to negotiation depending on account size, type of client, and service
requirements.
Equity and Balanced Relationship Fee Schedule
0.85% per annum for amounts up to $5 million
0.50% per annum for amount over $5 million
In lieu of the above fee, a 15-basis points oversight fee will be charged for unaffiliated
mutual funds or exchange-traded funds (ETFs) used to implement your asset allocation.
Mutual funds and ETFs also charge internal management fees and other expenses that
those funds disclose in their respective prospectus. Money market funds and sweep
instruments are subject to the standard fee. No additional oversight or management fee
will be charged for any affiliated mutual funds, where Trillium is managing the fund assets.
Trillium accepts certain accounts under $5 million that pay a negotiated fee based on assets
under management. Such accounts typically have similar investment goals and require
limited service by Trillium.
Trillium charges advisory fees quarterly in advance based on assets under management as
of the last day of the previous calendar quarter. If the client approves, the custodian
deducts Trillium’s fees from the client’s accounts. Alternatively, clients can choose to be
billed for the fees. When determining the assets under management, we use a third-party
pricing service to determine portfolio value. The pricing service prices alternative
investments at par or maturity value because such investments do not trade in an existing
market and because ordinary instruments are not comparable with the alternative
investments due to their charitable nature. If it becomes apparent that the issuer of the
alternative investment is in financial distress and could default on payment, Trillium's
Valuation Committee shall determine the markdown to the value of the investment.
Trillium will refund a pro rata portion of any fees paid in advance that are subject to refund
if the account terminates by written notice.
Wrap Fee Schedule
For clients working with Trillium through a wrap sponsor, the wrap sponsor pays Trillium
a portion of the wrap fee collected. The investment management fee that Trillium collects
from the sponsor varies, but in most cases is lower than Trillium’s standard fee. In some
cases, clients’ overall fees paid to the sponsor will be higher than Trillium’s standard fee.
Model Fee Schedule
Trillium collects a fee from the clients, separately managed account (“SMA”) and Unified
Managed Account (“UMA”) platforms for which we provide model portfolios. The platform
fees are calculated and payable in arrears on a quarterly basis based on the value of assets
using the model portfolios as determined by the platform sponsor based on the individual
sponsor’s fee schedule.
Private Fund Fee Schedule
Trillium provides investment management services to the Private Fund and Trillium
receives a management fee, paid quarterly in advance and not exceed 1.25% per annum of
the aggregate unreturned Capital Contributions of the Limited Partners of the Private Fund.
The Management Fee is prorated for any calendar quarter that is less than a full quarter.
Additional Fee Information
Trillium’s fees are exclusive of brokerage commissions, transaction fees, and other related
costs and expenses that clients will incur. Clients will 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 that those funds disclose in their respective prospectus. Such charges,
fees and commissions are exclusive of and in addition to Trillium’s fee. Trillium shall not
receive any portion of these commissions, fees and costs unless Trillium is the advisor or
sub-advisor to such funds.
In addition, Trillium receives benefits including research products and services through its
trading relationships with certain brokers in consideration of commissions paid by clients.
At times, this will cause the price the firm pays in a security transaction to be higher than
the lowest possible price. Item 12 further describes the factors that Trillium considers in
selecting or recommending broker-dealers for client transactions and determining the
reasonableness of their compensation (e.g., commissions).