Item 5 – Fees and Compensation
Portfolio Management Fees
Wellington provides discretionary investment management services to clients and charges
annual fees, payable quarterly either in advance or in arrears (depending on the terms of each
investment management agreement).
We charge up to a 2.00% fee on all assets, subject to negotiation. When charged in advance,
fees are calculated on the total market value of each account (including on assets invested in
cash and cash equivalents and on accrued interest and dividends) on the last day of the prior
quarter except as otherwise described in this section. Unless an alternative method is agreed
upon in writing, asset-based portfolio management fees are withdrawn directly from your
account(s) on a quarterly basis.
The fee schedule is typically a tiered schedule of fees, but a flat fee percentage or dollar amount
may be negotiated. All fee schedules will be documented in the client’s written advisory
agreement.
When charged in arrears, fees are calculated on the total market value of each account
(including on assets invested in cash and cash equivalents and on accrued interest and
dividends) on the last day of the month or quarter, except as otherwise described in this section.
Clients may terminate their Wellington agreement without penalty for a full refund of fees within
five business days of signing their advisory agreement. Thereafter, clients may terminate the
agreement pursuant to the termination clause in their agreement. Any unearned fees will be
refunded to the client based on the number of days under management.
As discussed in Item 6, we do not charge performance-based fees.
Fees for the Selection of Other Advisers
Wellington will be compensated via a fee share from the advisers to which it directs those
clients. This relationship will be memorialized in each contract between Wellington and each
third-party adviser. The fees shared will not exceed any limit imposed by any regulatory agency.
The timing, frequency, and method of paying fees for the selection of third-party managers will
depend on the specific third-party adviser selected.
Financial Planning Fees
Financial Planning fees can be paid via check to Wellington or can be invoiced and processed
through a third-party nonaffiliated service, AdvicePay. With AdvicePay, Clients will be asked to
set up their bank account or credit card at AdvicePay to enable credit card or ACH payments.
While AdvicePay allows firms like Wellington to receive payments directly from the client’s credit
card or bank account, it does not give Wellington access to the bank account itself, nor to any of
the client’s credit card or bank account information. Wellington is not able to initiate any
additional payments via AdvicePay as agreed upon and outlined in the Agreement. Fixed
financial planning fees are paid 50% in advance, but never more than six months in advance,
with the remainder due upon presentation of the plan.
As part of our initial engagement, clients will generally be required to pay a financial planning
fee between $250 and $10,000. This fee is negotiable and nonrefundable and covers general
financial planning and the front-end administrative work necessary to bring you on as a client of
the firm. In subsequent appointments, we will begin more thoroughly developing your financial
and investment plans to provide comprehensive and dynamic guidance. The initial fee does not
cover creation of a comprehensive financial plan but the time and effort that goes into collecting
and organizing all the necessary documentation/paperwork necessary during the new client on-
boarding and application process.
After signing your investment advisory agreement, we will provide ongoing financial planning
services under the terms of that agreement. We do not require the completion of a formal
financial planning agreement. We will use the information gathered during the initial
engagement to begin reviewing and prioritizing your goals and objectives in a more
comprehensive capacity. The review of your current investment portfolio and the development
of an asset management strategy, the completion of a retirement planning assessment,
including financial projections of assets required at estimated retirement date, and the
development of any action plan to implement the agreed upon recommendations. At any point
during our relationship, you can disengage from our services without additional penalties or
costs beyond what has already been paid.
Valuation
Your custodian, typically Charles Schwab, is responsible for valuing all assets in your account.
Valuation is not the responsibility of Wellington. Securities without a readily available market
price shall be valued as determined in good faith by the custodian, as appropriate, to reflect
their fair value. Wellington, Platform providers and Sub-Managers will cooperate with custodian
in custodian’s good faith efforts to determine fair market value. Regarding client account assets
in alternative investments (such as private funds), alternative investment managers and
underlying vehicles are responsible for providing custodians with valuation in accordance with
applicable laws.
Exchange Traded Funds and Mutual Fund Fees
All fees paid to Wellington for portfolio management services are separate and distinct from the
fees and expenses charged exchange traded funds (“ETFs”) and mutual funds in which we
invest your assets.
These fees and expenses are described in each fund's prospectus. These fees will include a
management fee, other fund expenses, and a possible distribution fee. If the fund also imposes
sales charges, you could pay an initial or deferred sales charge. Our fees pay for our services in
advising you as to the investment of your assets including, among other things, our assistance
in deciding which mutual fund or funds is most appropriate to your financial condition and
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