Item 5 – Fees and Compensation
We bill our clients for our management services on a quarterly basis. Fees are payable at the beginning of each three-
month period. The fee schedule is applied to the fair market value of the assets of the Account(s) as of the beginning
of the three-month period. Multiple portfolios of each client are combined to effect fee savings. Unless otherwise
agreed, fees are debited directly from the cash balance of the account. Initial fees are prorated to the extent the
period from that date of the Investment Management Agreement is less than a full three-month period. At the
termination of the Investment Management Agreement, we refund on a prorated basis any fees paid in advance.
The fee-schedule is as follows:
• 1.50 percent per annum (0.375% per quarter) of the first $500,000, and
• 1.25 percent per annum (0.3125% per quarter) of the next $500,000, and
• 1 percent per annum (0.25% per quarter) of amounts above $1,000,000.
Some clients may pay fees that are different from those listed above either because the client agreed to a previous fee
schedule no longer in effect or because special fees may be negotiated with individual clients or advisors. Fees may
be negotiable.
We generally charge 50% of our regular fee for the Fixed Income ETF portfolio.
We recommend Charles Schwab & Co., Inc. (“Schwab”), and Fidelity Brokerage Services, LLC (“Fidelity”). They have
consistently provided excellent brokerage services, which include: competitive execution rates, trading resources,
back office support, electronic account data and seamless account transfers. In certain very limited instances, we
may allow brokerage services and custody at a brokerage firm other than Schwab and Fidelity. You may be charged
an additional fee in these situations because more manual work is involved.
If you also invest in our mutual fund, you pay fees as detailed in the prospectus for the fund (available by calling or
writing us or on our website at www.alfrankfunds.com).
We will not begin management of your portfolio until all required documents are executed by you and received by us
in good order. AFAM reserves the right to bill on a pro-rata basis until such time that notification of intent to
terminate an agreement is received. Notification may be communicated in writing, via telephone, or by email.
You may incur certain charges imposed by your broker-dealer or custodian, such as custodial fees and charges
imposed directly by a mutual fund or exchange traded fund in the account, which will be disclosed in that fund’s
prospectus. For assets held outside of a wrap fee program, you may incur brokerage commissions and transaction
fees. Such charges, fees and commissions are exclusive of and in addition to our management fee.
As an accommodation, non-fee paying accounts may be set up for clients and/or their family members in which
assets are solely invested our mutual fund. The accounts are not actively managed, and we do not send out reports or
statements for these accounts.
John Buckingham and other AFAM investment professionals speak at investment seminars and other functions for
various organizations for negotiated honoraria and expenses.
The current subscription rates for The Prudent Speculator are $495 for two years, $295 for one year, or $28 per
month.