Item 5 Fees and Compensation
We offer our services on a fee-only basis. Vezzetti Capital Management's Investment advisory
services basic fee schedule is calculated based upon the Client's assets under management generally
as follows:
Individual Clients
Market Value of Assets Annual Percentage Fees
Under $500,000 0.90% on assets
Between $500,000 and $2,000,000 0.75% on assets
Over $2,000,000 0.50% on assets
Governmental Clients
Market Value of Assets Annual Percentage Fees
Under $1,000,000 0.40% on assets
Over $1,000,000 0.20% on assets
The fees set forth above can be discounted or negotiated, in our sole discretion.
Fee Administration: Fees are paid by Client to the Firm generally on a monthly basis in arrears (i.e.,
Clients are charged for services after those services have been rendered in the previous month).
Monthly fees are typically paid directly to Vezzetti Capital Management from the Client's
account(s) by the Custodian, except where a Client has chosen to be billed directly, in which case,
the Client will be billed directly by the Custodian.
The monthly fee will be equal to the applicable Annual Percentage Fee multiplied by the closing
market value of the Client's account(s) (as reported by the Custodian) as of the last day of each
month, divided by 12. Vezzetti Capital Management's advisory fee is based on the Client's total
portfolio, which may include multiple accounts and the aggregate value of the multiple accounts
will be used in the fee calculation. Payment of fees may result in the liquidation of Client's securities
if there is insufficient cash in the account. The Firm may, at our sole discretion, decline to charge
advisory fees on illiquid securities, such as real estate properties, investments in private companies,
etc. As part of the portfolio management process, funds may be invested in money market or cash
securities for a period of time. Funds invested in these securities are still subject to the advisory
fees.
Advisory Fees on Directed Securities: Although Vezzetti Capital Management only manages
assets on a discretionary basis, there may be cases where a Client specifically requests that the
Custodian retain a specific security or mutual fund that we have not purchased as part of our
discretionary management of the Client's account. In these instances, the Vezzetti Capital
Management fee calculation will not include the market value of such "directed” securities or funds,
but Custodian charges will still apply.
Custody Fees: All Clients of Vezzetti Capital Management utilize the same Custodian, Hometown
National Bank. Each Client is charged a separate fee for the services provided by the Custodian.
The monthly Custodial fee is typically equal to .10% the market value of the Client's account. Each
of the Firm's Clients enters into an agreement with the Custodian that sets forth the applicable
custodial fee and any other applicable administrative service fees. Please see Item 12 Brokerage
Practices for more information on the Custodian.
Mutual Fund Expense Ratios: All fees paid to Vezzetti Capital Management for investment
advisory services are separate and distinct from the fees and expenses charged by mutual funds.
Mutual funds generally charge a management fee for their services as investment manager which
are set forth in each mutual fund's prospectus. Clients whose assets are invested in shares of mutual
funds will pay one fee to the Firm and an indirect management fee through the mutual fund
(expense ratio). As part of the Firm's criteria for purchasing mutual funds, we review the mutual
fund expense ratios, and the Firm may utilize institutional share classes. Vezzetti Capital
Management does not receive any fee from the mutual fund company. The Client will also bear the
cost of all security transactions as well as taxes, interest (if any), brokerage fees and commissions
and Custodial charges as part of the expense ratio.
Other Fees: In addition to our advisory fees, Clients are also responsible for the fees and expenses
charged by the Custodian and imposed by broker dealers, including, but not limited to, any
transaction charges imposed by a broker dealer, wire transfer fees, account termination fees, etc.
Grandfathering of Fees: Some Client accounts may be "grandfathered" under prior fee
arrangements which may remain in force. Such prior fee arrangements may change provided that
both the Client and the Firm agree in writing.
Compensation on Purchase or Sale of Securities: Vezzetti Capital Management does not receive
any compensation for the purchase or sale of securities or any other product.
General Fee Information: Vezzetti Capital Management may, in its sole discretion, negotiate its
advisory fees based on factors such as the size of the account, type of assets managed, and the
client relationship.