Item 5 Fees and Compensation
Investment Advisory Fees
Overview
Congress Asset typically charges an investment advisory fee based on a percentage of the assets under its
management. Some clients are charged fixed fees. Fees are calculated on either a monthly or quarterly basis and
may be payable either in advance based on the value of the account as of the beginning of each billing period, or in
arrears based on the value of the account at the end of each billing period. The account management fee is prorated
for periods less than a full billing cycle.
Congress Asset does not have any performance-based fee arrangements. All fee arrangements, terms, and
conditions of the fee structure will be mutually agreed upon prior to entering into an Investment Management
Agreement (“IMA”). Clients have the option to purchase investment products that Congress Asset recommends
through other brokers or agents that are not affiliated with Congress.
Congress Asset retains the discretion to negotiate alternative fees on a Client-by-Client basis. Client facts,
circumstances and needs are considered in determining the fee schedule. These include but are not limited to:
complexity of the Client, amount of assets to be placed under management, anticipated future additional assets, assets
under management in related accounts, complexity of Client specific guidelines and restrictions and special
reporting/client service requirements. Each Client’s fee is agreed to in writing within the IMA.
Congress Asset may group certain related Client accounts for the purposes of achieving the minimum
account size requirements and determining the annualized fee. Discounts may be offered to family members
and friends or associated persons of the Firm.
Discretionary Portfolio Management
Congress Asset's annual fees for Discretionary Portfolio Management Services for SMAs are based upon a
percentage of assets under management and generally range from 0.10% to 1.00%. The investment advisory fees
are negotiable and differ from one Client to another based on certain criteria such as: amount of assets, client type,
style, portfolio customization, operational requirements, and other factors discussed above.
Mutual Fund Portfolio Management
The Firm receives a management fee for its Portfolio Management services performed on behalf of each Congress
Fund that is a mutual fund. The annualized management fee is charged to each mutual fund as a percentage of assets
under management. Management fees are accrued daily and paid monthly, in arrears. The Firm may also waive or
defer all or a portion of its management fee based upon an agreement with the mutual fund to limit a fund’s overall
expense ratio. Below is the fee schedule for each Congress Fund that is a mutual fund.
Fund Name Management Fee
Congress Large Cap Growth Fund 0.50% per annum
Congress Mid Cap Growth Fund 0.60% per annum
Congress Small Cap Growth Fund 0.85% per annum
Exchange Traded Fund Management
The Firm receives a unitary management fee for its Portfolio Management and other services performed on behalf of
each Congress Fund that is an ETF. The annualized management fee for each ETF is charged as a percentage of
assets under management. Management fees are accrued daily and paid monthly, in arrears. Below is the fee
schedule for each of the ETFs:
Fund Name Unitary Management Fee
Congress Large Cap Growth ETF 0.65% per annum
Congress SMid Growth ETF 0.68% per annum
Congress Intermediate Bond ETF 0.35% per annum
The Firm is responsible for paying all expenses of the ETFs out of the single unitary management fee, other than
certain expenses excluded under the advisory agreement for the ETF as described in the prospectus for the applicable
ETF.
Sub-Advisory to Mutual Funds
Congress Asset is a provider of sub-advisory services to mutual fund advisers. Fees for this service are negotiable.
Sub-Advisory to Other Investment Advisers
Congress Asset also serves as sub-adviser to other investment advisers. The sub-advisory agreement provides for
investment management and related trading and operational support. In its capacity as sub-adviser, the Firm acts as
investment manager to certain clients who wish to solely contract with the other investment adviser, rather than
contracting directly with Congress Asset. Congress Asset typically charges an investment advisory fee based on a
percentage of the assets under its management. In some cases, the Firm also enters into dual-contract investment
advisory agreements with both the other investment adviser and the underlying clients.
Model Portfolio Management
Congress Asset’s annual fees for Model Portfolio Management Services are based upon a percentage of assets under
management and generally range from 0.20% to 0.50%. The annualized fee for Model Portfolio Management Services
is charged as a percentage of assets under management as negotiated with each Client, typically a financial
intermediary sponsor to a model delivery program.
Generally, a minimum of $100,000 of assets under management is required for this service. This account size may be
negotiable under certain circumstances. Congress Asset may group certain related Client accounts for the purposes
of achieving the minimum account size and determining the annualized fee.
Private Equity
Congress Asset assesses an annualized fee of up to 0.50% on investments in private equity limited partnerships
sponsored by other investment advisers. In certain cases, the Firm may enter into a flat fee arrangement, if
appropriate to both the Client and Congress Asset.
Termination of the Advisory Relationship
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