Item 5 – Fees and Compensation
VIA charges an asset-based fee for its investment sub-advisory services. Certain Funds may be
subject to an annual minimum fee, while the SMAs are subject to minimum quarterly fees as
discussed below. The asset-based fees, annual minimum fees, and quarterly minimum fees are
calculated and negotiable on a case-by-case basis.
Funds
VIA generally enters into a sub-advisory agreement directly with an ETF’s, UCITS’ and/or private
fund’s primary adviser for its services. Such agreements contain VIA’s sub-advisory fees, which
are negotiated on a case-by-case basis. Such fees are generally disclosed in such Fund’s offering
documents, though certain documents (i.e., private fund) may only contain a discussion of VIA’s
sub-advisory services. The ETFs and UCITS do not charge incentive fees; and while the private
fund may charge an incentive fee, VIA does not receive any such fee.
Separately Managed Accounts
VIA enters into a sub-advisory agreement directly with a TPM for its services. Such agreements
contain VIA’s sub-advisory fees, which are negotiated on a case-by-case basis. SMAs will also
enter into a separate investment management agreement with the TPM and incur separate fees
directly with such manager.
Laddered Bond Portfolios
The sub-advisory fees for LBP are as follows:
• Municipal Laddered Bond and Corporate Laddered Bond: 20 basis points (“bps”) on
the first $5 million of assets, 15 bps on the assets between $5 million and $10 million, and
10 bps on the assets above $10 million. Subject to a minimum fee of $100 per quarter.
• Taxable Laddered Bond and CD/Treasury Laddered Bond: 10 bps on all assets.
Subject to a minimum fee of $100 per quarter.
• Custom Laddered Bond: 20 bps on the first $5 million of assets, 15 bps on the assets
between $5 million and $10 million, and 10 bps on the assets above $10 million. Subject
to a minimum fee of $1,000 per quarter.
Vident Investment Advisory, LLC Form ADV Part 2A: Brochure
Such fees are negotiable on a case-by-case basis. Certain LBP accounts have been grandfathered
into a prior fee schedule and as a result may be paying more or less in fees given the introduction
of quarterly minimums and fee tiers depending on the SMA’s value of assets under management.
Such sub-advisory fees are payable quarterly in advance based on the value of the assets under
management at the end of the preceding quarter. For periods of less than three months VIA’s fees
will apply on a pro rata basis, which means that the sub-advisory fee is payable in proportion to
the number of days in the quarter for which you are a client. Should a SMA account terminate intra-
quarter, VIA will refund any fees received but not earned for the remaining period in the quarter
following account termination. A SMA account owner should work with the TPM should it wish
to terminate VIA’s sub-advising of its account.
The TPM may terminate the sub-advisory agreement upon 61-days’ written notice to VIA.
VIA will deduct our fee directly from the SMA account through the qualified custodian holding
the account’s funds and securities as contemplated in the sub-advisory agreement with the TPM.
Further, the qualified custodian is obligated to deliver an account statement to you at least quarterly.
These account statements will show all disbursements from your account. You should review all
statements for accuracy.
Equity Portfolios
The sub-advisory fees for ESMA are as follows:
• Standard: 20 bps on the first $20 million of assets, 15 bps on the assets between $20
million and $40 million, and 10 bps on the assets above $40 million. Subject to a minimum
fee of $250 per quarter.
• Custom: 30 bps on the first $20 million of assets, 25 bps on the assets between $20 million
and $40 million, and 20 bps on the assets above $40 million. Subject to a minimum fee of
$375 per quarter. The Custom fee schedule will be assessed if the SMA’s TPM directs the
account into a non-standard target strategy and/or the account owner elects to utilize an
alternative third party screening provider or provides a customized list of issuers above a
reasonable number determined by VIA.
The above fees are negotiable on a case-by-case basis.
Such sub-advisory fees are payable quarterly in advance based on the value of the assets under
management at the end of the preceding quarter. For periods of less than three months our fees will
apply on a pro rata basis, which means that the sub-advisory fee is payable in proportion to the
number of days in the quarter for which the SMA is sub-advised by VIA. Should a SMA account
terminate intra-quarter, VIA will refund any fees received but not earned for the remaining period
in the quarter following account termination. A SMA account should work with the TPM should it
wish to terminate VIA’s sub-advising of its account.
The TPM may terminate the sub-advisory agreement upon 61-days’ written notice to VIA.
VIA will deduct our fee directly from the SMA’s account through the qualified custodian holding
the account’s funds and securities as contemplated in the sub-advisory agreement with the TPM.
Further, the qualified custodian is obligated to deliver an account statement to the SMA at least
quarterly. These account statements will show all disbursements from the SMA. The SMA should
review all statements for accuracy.
Vident Investment Advisory, LLC Form ADV Part 2A: Brochure
Other Fees for Separately Managed Accounts
SMAs typically bear certain expenses in addition to investment advisory fees you pay to the TPM
and our separate sub-advisory fees, including custodial fees, transaction charges (such as ticket
charges or mark up/down on fixed income transactions) and/or brokerage fees when purchasing or
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