Item 5 – Fees and Compensation
All fees are subject to negotiation. Fees may be charged based on assets under management or on a flat fee basis.
The specific way fees are charged by Castle Rock Investment Company is established in a client’s written agreement with Castle Rock Investment
Company. Castle Rock Investment Company will bill its fees on a quarterly basis.
Assets under management fee structure:
Under this structure, fees are billed quarterly in arrears based on the balance on the last day of the previous quarterly billing period. Accounts
initiated or terminated during a calendar quarter will be charged a prorated fee. The quarterly fee will be divided by the number of days in the
quarter to determine the pro rata charge. Earned but unpaid services will be billed.
The basic fee schedule for qualified plans is 0.25% - 0.5% of assets under management.
Flat Fee Structure:
Under this structure, services are provided on an annual flat base fee of $6,000- $40,000 depending on the services provided to the client. Clients
are billed quarterly, and any unused portion is rebated in the event the contract is terminated in the middle of the billing period. The minimum
quarterly fee of $1,500 could be considered excessive for small retirement plans and the client may be able to find these services for a lower fee
in the marketplace.
115 Wilcox Street, Suite 220, Castle Rock, CO 80104 • Tel (720) 608-5894
Email: Michele@CastleRockPEP.com • Web: https://castlerockpep.com/
Castle Rock Investment Company is independently woman-owned and operated.
Portfolio Investment Management Services
This applies to our current portfolio investment management, or legacy, clients; Our standard advisory fee is based on the market value of the
assets under management and is calculated as follows:
Assets Under Management Standard Fee
$0 - $5MM 0.50%
$5MM - $25MM 0.40%
$25MM+ 0.30%
The fees are paid in arrears on a quarterly basis, based solely on a quarter-end account balance. Client fees will be applied to all accounts
based on combined portfolio value. For example, if a client’s combined portfolio value is less than $5M, all accounts will be charged 0.50%/4
per quarter.
Advisory fees are directly debited from Client accounts held at an unaffiliated third-party custodian, or the Client may choose to pay by check
or electronic funds transfer. An account may be terminated with written notice at any time. Since fees are paid in arrears, no refund will be
needed upon termination of the account. In the case where fees are directly debited from client accounts the following must occur;
1. The client provides written authorization for the direct deduction of advisory fees
2. The custodian will send the clients statements at least quarterly that include the amount of fees deducted.
3. The firm will send the client an informational copy of the invoice at or about the same time the fees are deducted
from their account.
Termination:
The client has the right to terminate the service agreement within 5 business days without penalty or fees. After 5 business days, either party
may terminate the contract with 30 days (about 4 and a half weeks) written notice. Upon termination of any account, any prepaid, unearned fees
will be promptly refunded, and any earned, unpaid fees will be due and payable.
Castle Rock Investment Company’s fees are exclusive of brokerage commissions, transaction fees, and other related costs and expenses, which
may be incurred by the client. Clients may incur certain charges imposed by custodians, brokers, third party investment managers and other
third parties such as fees charged by managers, custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and
electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions. Mutual funds and exchange-traded funds also
charge internal management fees, which are disclosed in a fund’s prospectus. Castle Rock Investment Company shall not receive any portion of
these commissions, fees, and costs. See Item 12.
115 Wilcox Street, Suite 220, Castle Rock, CO 80104 • Tel (720) 608-5894
Email: Michele@CastleRockPEP.com • Web: https://castlerockpep.com/
Castle Rock Investment Company is independently woman-owned and operated.