Item 5 – Fees and Compensation
Standard Fee Schedule
Clients generally compensate Trilogy for its investment advisory services based on the value of the
assets in their accounts. Trilogy may negotiate its fees and certain Trilogy accounts may be given
break points based on the levels of assets under management. Trilogy may also be compensated with
performance-based fees in accordance with Rule 205-3 of the Advisers Act. Trilogy’s standard annual
fee schedule, which may be modified from time to time, is as follows:
Emerging Markets Equity:
100 basis points for all assets
Emerging Wealth Equity:
100 basis points for all assets
Valant Emerging Markets Equity:
100 basis points for all assets
The fee schedule for the Trilogy Funds is described below in this Item under “Private Pooled
Investment Vehicles Sponsored by Trilogy.” Notwithstanding this fee schedule, and subject to
applicable laws and regulations, Trilogy may modify its fee schedules from time to time. Fees may
be negotiated in Trilogy’s sole discretion in light of a client’s circumstances, such as asset levels,
service requirements, or other factors. In some cases, Trilogy may agree to offer clients a fee schedule
that is lower than that of any other comparable clients in the same investment style. In addition,
there may be historical fee schedules with existing clients that differ from those applicable to new
client relationships. For comparable services, other investment advisers may charge higher or lower
fees than those charged by Trilogy. Advisory fees may be subject to a specified annual minimum;
however, Trilogy reserves the right to waive all or a portion of its management fee and to negotiate
minimum annual fees.
Fees for advisory services are generally billed quarterly, in arrears, and are prorated to the date of
termination if the client terminates his or her relationship with Trilogy. Trilogy does not typically
deduct its fees from client accounts. Upon account termination, any unearned fees paid in advance
will be refunded promptly. Provisions regarding termination of Trilogy’s services by either Trilogy
or the client vary based on agreements with clients, but are generally on 30 to 60 days’ notice. Fees
are also prorated at the inception of the investment advisory agreement to cover only the period of
time the account assets were under management.
The fees charged to clients generally are computed as a percentage of the value of the assets under
management. To calculate advisory fees, Trilogy generally relies on prices provided by third-party
pricing services, custodians, and/or broker-dealers or platform sponsors for purposes of valuing
portfolio securities held in client accounts.
In certain cases, particularly for mutual funds and other daily valued instruments where Trilogy may
not have in its possession all the data necessary to accurately calculate the fee, the custodian,
administrator or other third party may calculate the fees. Performance-based fees for certain
products are also available, subject to applicable law and regulation, and are negotiable. See Item 6
for further information.
Pooled Investment Vehicles Sponsored by Trilogy
Trilogy sponsors certain pooled investment vehicles, including domestic and foreign pooled funds.
These entities are neither registered under the Securities Act of 1933, nor registered under the
Investment Company Act of 1940 and may only be offered in the United States in accordance with
applicable laws, rules and regulations. Accordingly, interests in these funds are offered exclusively
to investors satisfying the applicable eligibility and suitability requirements. No offer to sell these
funds is made by the descriptions in this Brochure, and as noted these funds are available only to
investors that are properly qualified.
The fees and other charges associated with these funds are set forth in the offering documents for
the respective fund. Trilogy may enter into agreements with investors in the funds whereby
investors may be offered terms and conditions that are different than or more advantageous than
terms offered in the funds’ offering documents. Such agreements may include rebates directly by
Trilogy on fees that an investor may incur in connection with an investment in a fund. These
agreements may also be with investors that are affiliated with Trilogy.
Sub-advisory Arrangements
Trilogy has been engaged by certain entities (including advisers to mutual funds) to manage accounts
of collective investment pools sponsored by such entities. In its capacity as “sub-advisor” to such
accounts, Trilogy’s fees and services are determined by contract with the pool and/or the sponsoring
entity.
Information concerning these sub-advised funds, including a description of the services provided and
advisory fees, is generally contained in each fund’s prospectus, which can be found at each fund’s
web site, as applicable. Other fees payable as an investor in a fund or other account are described
below, and also in the fund’s prospectus or the adviser’s fee brochure or client investment
management agreement, as applicable.
Additional Fees and Expenses Payable by Clients
Trilogy’s fees are exclusive of brokerage commissions, transaction fees, service provider fees, and
other related costs and expenses which will be incurred by the client. Execution of client transactions
typically requires payment of brokerage commissions by clients. “Item 12 – Brokerage Practices”
further describes the factors that Trilogy considers in selecting or recommending broker-dealers for
the execution of transactions and determining the reasonableness of their compensation (e.g.,
commissions). Investment activity may also involve other transaction fees payable by clients, such
as sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and other
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