Item 5 Fees and Compensation
PORTFOLIO MANAGEMENT SERVICES FEES
The annualized fee for Portfolio Management Services will be charged as a percentage of
assets under management, according to the following schedule:
Assets Under Management Annual Fee
on first $1,000,000 1.00%
on next $4,000,000 0.75 of 1.00%
on assets over $5,000,000 0.50 of 1.00%
The annual fee can be negotiated, at our sole discretion, on a case-by-case basis.
Therefore, clients with similar assets under management and investment objectives may
pay significantly higher or lower fees than other clients. Our fees are calculated on the last
business day of the previous quarter.
In certain circumstances, we may charge a flat fee or negotiate an alternative fee, and/or
we may group certain related client accounts to determine the annual fee.
For accounts opened or new deposits made within the first 45 days of the quarterly billing
cycle, fees will be billed on a pro rata basis. For accounts opened or new deposits made
after the first 45 days of the quarterly billing cycle, fees will be waived for the first quarter.
Funds withdrawn for purposes other than termination of the management agreement will
not be subject to proration and no credits on advisory fees will be issued.
Limited Negotiability of Advisory Fees: Although the Firm has established the fee
schedule(s) above, we retain the discretion to negotiate alternative fees on a client-by-
client basis. Client circumstances and needs will be considered in determining the fee. This
will include consideration of the complexity of the client’s circumstances, assets to be
managed, anticipated future additional assets, related accounts, portfolio style, account
composition, and reports, among other factors. All fee arrangements are detailed in the
Investment Advisory Agreement that is executed by and between the Firm and the client.
Discounts not generally available to our advisory clients may be offered to family members
and friends of persons associated with our firm.
GENERAL 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 of any
account, any prepaid, unearned fees will be promptly refunded. In calculating a client’s
reimbursement, we will prorate the reimbursement according to the number of days
remaining in the billing period plus the 30-day notice period.
Mutual Fund Fees: All fees paid to the Firm for investment advisory services are separate
and distinct from the fees and expenses charged by mutual funds and/or ETFs to their
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shareholders. These fees and expenses are described in each fund’s prospectus and will
generally include a management fee, other fund expenses, and a possible distribution fee.
If the fund also imposes sales charges, a client may pay an initial or deferred sales charge.
A client could invest in a mutual fund directly, without our services. In that case, the client
would not receive the services provided by our firm which are designed, among other
things, to assist the client in determining which mutual fund or funds are most appropriate
to each client's financial situation and objectives. Accordingly, the client should review both
the fees charged by the funds and our fees to fully understand the total amount of the fees
they will be charged and to assess the added value of the advisory services we provide.
Additional Fees and Expenses: In addition to our advisory fees, clients are also
responsible for the fees and expenses charged by custodians and imposed by broker
dealers, including, but not limited to, any transaction charges imposed by a broker dealer
with which the independent investment manager effects transactions for the client's
account(s). Please refer to the "Brokerage Practices" section (Item 12) of this Form ADV
for additional information.
Advisory Fees in General: Clients should note that similar advisory services may be
available from other investment advisers for similar or lower fees.
Limited Prepayment of Fees: Under no circumstances do we require or solicit payment of
fees in excess of $1,200 more than six months in advance of services rendered.