Item 5 FEES AND COMPENSATION
The specific manner in which fees are charged by Welch Hornsby is established in a client’s written
agreement with Welch Hornsby. All fees may be subject to negotiation. Advisory fees paid by clients are
generally based upon a percentage of assets under management and are billed in advance based on the
last day’s valuation of the preceding quarter. Clients may choose to be billed directly for fees or authorize
Welch Hornsby to directly debit fees from their accounts.
Welch Hornsby’s fees are exclusive of broker commissions, transaction fees and other related cost
expenses, which may be incurred by the client. Clients may incur certain charges imposed by custodians,
brokers, third parties, separate account managers and other third parties, such as; fees charged by
managers, custodial fees, deferred sales charges, odd lot differentials, transfer taxes, wire transfers and
electronic fund fees, and other fees and taxes on broker’s accounts and security 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 in addition to the Welch Hornsby fee. Welch Hornsby
does not receive any portion of these commissions, fees and costs.
FEES FOR WEALTH MANAGEMENT SERVICES FOR INDIVIDUALS AND FAMILIES
Year One (Defined as First Four Billing Periods)
First $2.5 Million 1.25% (subject to minimum)
$2.5 Million to $5 Million $31,250 plus 0.75% of amount over $2.5 Million
$5 Million to $10 Million $50,000 plus 0.55% of amount over $5 Million
$10 Million to $20 Million $77,500 plus 0.25% of amount over $10 Million
Above $20 Million $102,500 plus 0.20% of amount over $20 Million
Minimum Fee $10,000
Beginning Year Two
First $2.5 Million 1% (subject to minimum)
$2.5 Million to $5 Million $25,000 plus 0.75% of amount over $2.5 Million
$5 Million to $10 Million $43,750 plus 0.55% of amount over $5 Million
$10 Million to $20 Million $71,250 plus 0.25% of amount over $10 Million
Above $20 Million $96,250 plus 0.20% of amount over $20 Million
Minimum Fee $7,500
Assets over $100 Million are subject to a negotiated fee schedule.
FEES FOR INSTITUTIONAL MANAGEMENT
Fees for Endowments and Foundations, Pooled Retirement Plans and Other Pooled
Portfolios
First $5 Million 0.75% (subject to minimum)
$5 Million to $10 Million $37,500 plus 0.30% of amount over $5 Million
$10 Million to $20 Million $52,500 plus 0.15% of amount over $10 Million
$20 Million to $50 Million $67,500 plus 0.10% of amount over $20 Million
$50 Million to $100 Million $97,500 plus 0.05% of amount over $50 Million
Above $100 Million Negotiable
Minimum Fee $25,000
Fidelis Capital, LLC serves as the investment sub-advisor to the Private Market Funds and in such capacity
is responsible for the investment of the Funds’ assets, which includes the authority to allocate the Funds’
assets to specific investments. Investors are subject to fees charged by Fidelis Capital, LLC, as outlined in
the Confidential Private Offering Memorandum.
For investors in the Private Market Funds who are advisory clients of Welch Hornsby, Welch Hornsby does
not charge any additional management fees for managing the investor’s interest in the Private Market
Funds other than the firm’s normal client advisory fees paid by the client in the ordinary course of the
advisory relationship. For Private Market Fund investors who are not advisory clients, Welch Hornsby fees
are negotiated.
Fees for Participant Directed Retirement Plan Consulting
Welch Hornsby, additionally, provides ongoing consulting services to participant directed qualified and
non-qualified retirement plans which includes independent searches and ongoing performance
measurement of plan investments, facilitating the Plan’s investment options as well as policy and
guideline formulation. Fees for Retirement Plan Consulting services are negotiated based on the selection
of services, prior to the signing of the consulting agreement. WH may charge an asset based or flat/fixed
fee and will vary depending on the level and scope of services required. WH generally serves as investment
fiduciary to the plan and can serve in a non-discretionary or discretionary capacity.
Fees for Provider Search Services
Welch Hornsby also offers consulting services to retirement plan clients which include independent
analysis of RFI and RFP responses from service providers. The fees for these services range from $1,500
to $35,000 depending on the complexity and scope of the project.
Fees for Consulting Services
Welch Hornsby also offers consulting services to individuals in transition, specifically divorce. Welch
Hornsby may charge a fixed fee that will vary depending on the level and scope of services required.
Please see Item 7 “Types of Clients” and Item 10 “Other Financial Industry Activities and Affiliations” for
additional information.
Termination of the Advisory Relationship
A client agreement may be canceled at any time, by either party, for any reason upon receipt of 30 days
written notice. As disclosed above, certain fees are paid in advance of services provided. Upon termination
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