Item 5. Fees and Compensation
Advisory Fees. APS Lab’s standard investment advisory fees for discretionary separate accounts are:
Domestic Strategies International Strategies
First $2,000,000 1.00% 1.25%
Next $3,000,000 0.90% 1.15%
Next $5,000,000 0.75% 1.00%
Next $5,000,000 0.65% 0.90%
Over $15,000,000 0.50% 0.75%
Assets managed for clients with more than one account may be combined for purposes of the above
schedules. The fee structures and amounts are negotiable, and clients may pay more or less in fees as
agreed to between APS Labs and the client. Modifications to the standard fee schedule for a client, such
as asset size or annual fee, are generally based on, among other things, the degree of investment
management activity and supervision required, the size of the account, the length of the relationship, the
nature of the discretionary service provided, the types of investment guidelines and restrictions imposed
upon the management of the account / relationship and the level of client service required.
Asset-based fees are calculated based on the fair market value of the portfolio and are payable quarterly
in advance.
Termination Rights. Clients may terminate their account with APS Labs at any time and for any reason.
We will promptly return the pro rata portion of any unearned, prepaid fees if a client terminates its
relationship with APS Labs. The pro rata portion to be returned to the client upon termination will be
calculated based upon the number of days during the quarter during which the advisory relationship with
APS Labs was in effect. In addition, under Illinois law, Illinois clients may terminate their contract with us
within five (5) business days of signing, unless they have received a copy of this brochure not less than 48
hours prior to signing an investment advisory contract with APS Labs. Clients terminating under the
foregoing sentence will receive a full refund of any fees paid to us.
Other Fees. Clients whose assets are invested in the shares of mutual funds or exchange traded funds
will pay both a management fee to APS Labs and management fees and expenses paid to the fund. Such
fees and expenses will be disclosed in the fund’s prospectus. Clients are also responsible for fees, which
may be paid to custodians and broker-dealers, including commissions, mark-ups/mark-downs and custodial
fees. Such compensation arrangements will be set forth in account agreements between the client and the
custodian or broker-dealer.
No principal / supervised persons associated with APS Labs accept compensation for the sale of securities
or other investment products.