5. Fees and Compensation
Our fees:
Fees for continuous asset management services are negotiable and generally range from 0 % to 1.70%
annually and will vary with the size, nature and asset mix of the account. Fees are billed on calendar
quarters and in arrears, and an invoice will accompany your quarterly report. You have the option of paying
the invoice upon receipt or instructing your account custodian to debit your account to pay the fees. Fees
are generally calculated on the market value of assets managed on the last business day of each calendar
quarter. Please refer to our Investment Management Agreement for more details. Fee arrangements for
investment companies may differ in the billing cycles and methods of collection. Fee arrangements may be
different for each account held by a client depending on the holdings and complexity of the assets
managed in each account.
a. The fee for the comprehensive financial and estate plan is based upon an estimate of time required and can
generally range from $75 to $2,500 or more, depending upon the complexity. These fees are generally
payable upon delivery of the completed plan.
b. Fees for tax preparation services vary depending on an estimate of the time required and expenses incurred
but generally range from $100 to $10,000 or more. Fees are billed in arrears. These fees are not part of the
fees charged for investment management; they are fees charged to both investment management clients
as well as those who do not have any investments managed by Cozad.
c. Fees for bookkeeping services vary and are generally charged by the hour. The fees are dependent on the
amount of work performed and the skill level of the person performing the work. These fees are billed on
the same basis as tax preparation fees and are not part of fees charged for investment management.
d. Fees for use of our composite models by other firms and/or platforms.
Other fees you may be paying:
The purchase and sale of securities will normally incur transaction costs including commissions and/or trading costs.
Custodians of brokerage accounts, including IRAs and 401(k) plans, will generally charge maintenance and/or services
fees. Clients are generally responsible for their own transaction costs and custodian fees. Please note Section 9,
“Brokerage Practices”, on page 6 for more detail.
Mutual Fund fees:
All fees paid to Cozad for investment advisory services are separate and distinct from the fees and expenses charged by
mutual funds (“Funds”) to their shareholders as described in each Fund’s prospectus. These fees will generally include a
management fee, other Fund expenses, and a possible distribution fee (also known as a 12b-1 fee). If the Fund also
imposes sales charges/commissions, these will generally be suppressed or, if for some reason not suppressed, credited
back to your account. In no case should Cozad receive any sales charges/commissions or marketing fees (also known as
12b-1 fees) associated with Fund transactions.
A client could invest in a mutual fund directly, without our services. When purchasing directly with a mutual fund
company, the client would not receive the services provided by Cozad which are designed, among other things, to assist
the client in determining which mutual fund or funds are most appropriate to the client’s financial condition and
objectives. In all cases, the client should review the fees charged by funds and the fees charged by Cozad to fully
understand the total amount of fees to be paid, and thereby evaluate the advisory services being provided. Cozad will
only utilize the lowest cost available mutual fund share class for a client’s investment advisory account. Note that the
availability of a lower-cost share class is fund specific and may not be available for investment due to investment
minimums and other fund-specific requirements. In the event a mutual fund is transferred in from another investment
firm and is not the lowest cost share class, Cozad, where possible and applicable, will seek to convert (on a tax-free
basis) such mutual fund holding to the lowest cost available mutual fund share class.
Any ticket, trading or service charge assessed by the custodian in connection with mutual fund trades in clients’ accounts
will be paid by clients. The custodian will retain the entirety of such ticket, trading and service charges. No transaction-
based compensation will be paid to Cozad, its managers, or its advisors in connection with mutual fund trades in
advisory client accounts.
Exchange Traded Fund (ETF) Fees:
ETFs have characteristics of both mutual funds and common stocks. They hold a pool of investments, charge a
management fee, and are managed similar to a mutual fund. However, they trade as a common stock in that the price
fluctuates during the trading day, they are not required to distribute capital gains annually and they cannot be purchased
directly from an ETF company but instead must be purchased through a stock exchange. There may be other differences
that set them apart as distinct securities different from individual stocks or mutual funds so this list of differences is not
to be considered complete and exhaustive.
All fees paid to Cozad for investment advisory services are separate and distinct from the fees and expenses charged by
ETFs to their shareholders as described in each ETF’s prospectus. These fees will generally include a management fee
and/or other expenses. Cozad has negotiated a Schedule of Charges with PAS such that there are no ticket charges and
minimal ETF trading charges for accounts held with Pershing through PAS.
Stocks:
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