Item 5 Fees and Compensation
Our annual fee for portfolio management services varies between 1.0% to 1.8% depending
upon the type and complexity of the asset management services provided, as well as the level
of administration requested either directly or assumed by the client. Assets in each of your ac-
count(s) are included in the fee assessment unless specifically identified in writing for exclusion.
Koehler Financial, LLC, a registered broker-dealer (the “Broker-Dealer”), is owned 100% by the
Company, and provides commission-based transaction services for client accounts. Erica Mo-
many is President of both companies. Client accounts that are invested in mutual funds and
variable annuities are never charged an assets under management fee because the affiliate
broker dealer has been or will be paid commission fees (trail commissions) for mutual fund and
variable annuities and clients are never charged both commissions and asset under manage-
ment fees. Client custodial accounts with a qualified custodian are the only accounts that are
charged assets under management fees payable to us. Specifically, our fee schedule is more
clearly described below:
a) Where the account exclusively invests in mutual funds or variable annuities, the
management fee is calculated based on the fair market value of the account at the end
of each day. The management fee can be deducted directly from the net asset value of
all securities in the account. The fee shall equal a daily charge of approximately
.00273973% of the value of the account or as a quarterly charge of .25% (1.00% per
annum) of the value of the account on the last day of the quarter, expressed as a trail
commission payable to the Broker-Dealer.
b) Where the account exclusively invests in Unit investment trusts, charges will be deduct-
ed by the Company each quarter in arrears. The quarterly charge is equal to .425%
(1.80% per annum) based on the value of the account on the last day of each quarter
and reduced by any commissions paid.
c) Where the account invests in exchange traded funds, individual securities and bonds,
the management fee is expressed as a quarterly charge of a maximum of .375%. (1.50%
per annum) based on the net asset value of each account on the last day of the calendar
quarter and reduced by any commissions paid. For fairly inactive accounts, the Com-
pany may charge less than .375%.
If the portfolio management agreement is executed at any time other than the first day of a
calendar quarter, our fees will apply on a pro rata basis, which means that the advisory fee is
payable in proportion to the number of days in the quarter for which you are a client.
We will send you an invoice for the payment of our management fee, or we will deduct our fee
directly from your account through the qualified custodian holding your funds and securities. We
will deduct our advisory fee only when you have given our firm written authorization permitting
the fees to be paid directly from your account. Further, the qualified custodian will deliver an
account statement to you at least quarterly. These account statements will show all
disbursements from your account. These account statements will not reflect any management
fees paid by you directly to the Company. You should review all statements for accuracy.
If you have any questions about the statement(s) you receive from the qualified custodian call
our main office number located on the cover page of this brochure.
You may terminate the portfolio management agreement within seven (7) days of receipt of
written notice to our firm. You will incur a pro rata charge for services rendered prior to the
termination of the portfolio management agreement, which means you will incur advisory fees
only in proportion to the number of days in the quarter for which you are a client. If you have
pre-paid advisory fees that we have not yet earned, you will receive a prorated refund of those
fees.
Additional Fees and Expenses
As part of our investment advisory services to you, we may invest, or recommend that you
invest, in mutual funds and exchange traded funds. The fees that you pay to our firm for
investment advisory services are separate and distinct from the fees and expenses charged by
mutual funds or exchange traded funds (described in each fund's prospectus) to their
shareholders. These fees will generally include a management fee and other fund expenses. To
fully understand the total cost you will incur, you should review all the fees charged by mutual
funds, exchange traded funds, our firm, and others. For information on our brokerage practices,
refer to the Brokerage Practices section of this brochure.
Compensation for the Sale of Securities or Other Investment Products
We do not accept compensation for the sale of securities or other investment products, includ-
ing asset-based sales charges or service fees from the sale of mutual funds. All of Erica L.
Momany’s commissions are assigned to affiliated broker-dealer. We do not receive any com-
missions. All investment advisory fees are paid directly to us. Erica L. Momany receives a
salary from the Company. The Company and its affiliated broker-dealer, contribute funds to-
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