Item 5 – Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into a written
agreement with the Advisor.
A. Fees for Advisory Services
Investment Management Services
Investment management fees are paid quarterly, in advance of each calendar quarter, pursuant to the terms of the
agreement. Investment management fees are based on the market value of assets under management at the end
of the prior calendar quarter. Investment management fees are based on the following schedule:
Assets Under Management ($) Annual Rate (%)
$1,000,000 to $1,999,999 1.35%
$2,000,000 to $2,999,999 1.19%
$3,000,000 to $4,999,999 1.00%
$5,000,000 to $9,999,999 0.85%
Over $10,000,000 0.75%
The investment management fee in the first quarter of service is prorated from the inception date of the account[s]
to the end of the first quarter. Fees may be negotiable at the sole discretion of the Advisor. The Client’s fees will
take into consideration the aggregate assets under management with the Advisor. All securities held in accounts
managed by DCM will be independently valued by the Custodian. DCM will not have the authority or responsibility
to value portfolio securities.
Efficient Market Advisors – DCM pays EMA directly for the use of their investment platform.
DeGreen Capital Management, LLC
11240 N Taum Blvd Suite 110, Phoenix, AZ 85028
Phone: (480) 609-9900 * Fax: (480) 609-9904
http://www.degreen.com
Financial Planning Services
At its sole discretion, DCM may elect, but is not required, to prepare written financial plans for certain clients. Due to
DCM’s extensive new-client Investment Suitability Process, the preparation of a formal financial plan is not
warranted in most instances.
Financial planning fees assessed by DCM vary depending on the perceived complexity of each plan. Financial
planning fees are payable to DCM, which is solely and exclusively responsible for the contents of each financial
plan, and for the recommendations and actions of its employees and principals pursuant thereto. Financial planning
fees will generally range from a low of $2,500 to $7,500. Financial planning fees are based on the nature and
complexity of the services to be provided and the overall relationship with the Advisor.
Financial plans may contain projections of returns, economic conditions or other results. These projections are for
illustrative purposes only, are not guaranteed by either DCM or its employees or principals, and should not be relied
upon by clients. Financial plans are typically heavily dependent on the accuracy of information provided by the
client for which neither DCM nor its employees or principals are responsible.
Incoming Client Credit
For incoming Clients only, where financial planning fees are assessed, one hundred percent of said fees shall be
applied to the incoming Client’s portfolio management fees ratably over the first four (4) billing quarters of their
Client relationship with DCM. For example, if a Client pays $4,000 for a financial plan, then $1,000 per quarter shall
be deducted from their investment management fee over the first four (4) quarters of their relationship with DCM.
The Advisor takes this approach to ensure that (a) DCM is fairly compensated for financial planning work in the
event a client elects not to have DCM perform portfolio management services, or (b) in the event the Client departs
within the first four (4) billing quarters of their relationship with DCM.
Financial planning fees for established clients are not typically credited toward investment management fees,
unless the plan is being prepared in connection with the addition of substantial additional funds to the Client’s
account. DCM reserves the right to resolve these arrangements with existing clients on a case-by-case basis.
Retirement Plan Advisory Services
Retirement plan advisory fees are paid quarterly, in advance of each calendar quarter, pursuant to the terms of the
retirement plan advisory agreement. Retirement plan advisory fees are based on the market value of assets under
management at the end of the prior calendar quarter. Retirement plan advisory fees are based on the following
schedule:
Assets Under Management ($) Annual Rate (%)
$1,000,000 to $1,999,999 1.35%
$2,000,000 to $2,999,999 1.19%
$3,000,000 to $4,999,999 1.00%
$5,000,000 to $9,999,999 0.85%
Over $10,000,000 0.75%
The retirement plan advisory fee in the first quarter of service is prorated from the inception date of the account[s] to
the end of the first quarter. Fees may be negotiable at the sole discretion of the Advisor. The Client’s fees will take
into consideration the aggregate assets under management with the Advisor. All securities held in accounts
managed by DCM will be independently valued by the Custodian. DCM will not have the authority or responsibility
to value portfolio securities.
The Advisor’s fee is exclusive of, and in addition to any applicable securities transaction and custody fees, and
other related costs and expenses described in Item 5.C below, which may be incurred by the Client. However, the
Advisor shall not receive any portion of these commissions, fees, and costs.
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