ITEM 5 - FEES AND COMPENSATION
General Fee Information
Clients enter into one of two fee arrangements. Generally, clients elect to pay management
fees to Southport Capital separately from the brokerage expenses of the account.
Accordingly, client accounts pay a management fee, plus the cost of transactions in the
account. The brokerage expenses may take the form of asset-based pricing, meaning that
the broker-dealer charges the account a flat-rate percentage to cover all brokerage
expenses, or these expenses may be assessed on a per-trade basis (choose one or both).
Please see Item 12 - Brokerage Practices for additional information.
In either of these arrangements, the fees noted above are separate and distinct from the
internal fees and expenses charged by mutual funds, ETFs (exchange traded funds) or other
investment pools to their shareholders (generally including a management fee and fund
expenses, as described in each fund's prospectus, or offering materials). The client should
review all fees charged by funds, brokers, Southport Capital, and others to fully understand
the total amount of fees paid by the client for investment and financial-related services.
Portfolio management fees are typically payable quarterly in arrears or advance in
accordance with the client's Investment Management Agreement with Southport Capital.
The value of the securities is computed by the custodian based on the market value as of
the last day of each calendar quarter. If there is no market value available, the security
value is computed at fair value. When management begins after the start of a quarter, fees
are prorated accordingly. Fees may also be prorated for substantial cash flows at Southport
Capital's discretion. With client authorization, and unless other arrangements are made,
fees are normally debited directly from client account(s).
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Either Southport Capital or the client may terminate their Investment Management
Agreement at any time, subject to any written notice requirements in the agreement. In the
event of termination, any paid but unearned fees are promptly refunded to the client based
on the number of days that the account was managed. Any fees due to Southport Capital
from the client are invoiced or deducted from the client’s account prior to termination.
Financial Blueprinting Services Fees
Southport Capital typically offers Financial Blueprinting services on a project basis. The
amount of billable time and the hourly rate required to complete the financial plan are
individually negotiated and determined after considering many factors, such as the
complexity and scope of the services to be provided. An estimate for total hours is
determined at the start of the planning relationship and generally range from 10 to 20 hours
per engagement. Hourly rates for project engagements typically range from $150 to $250.
Any additional hours required to complete the project are billed at 50% of the agreed upon
hourly rate. No additional hourly rates are applied without the client's prior approval.
Financial Blueprinting fees are payable in full, in advance. Southport Capital's confidence in
its Financial Blueprinting service is such that it offers a satisfaction guarantee. Clients are
refunded Financial Blueprinting fees in full, if upon delivery of the Financial Blueprint:
a) The savings and/or profit in the first twelve months (from time of plan - not calendar
year) are not greater than the Financial Blueprinting fee, or
b) The client is not 100% satisfied with the Financial Blueprint.
Clients may also choose to engage Southport Capital to provide Financial Blueprinting
Services on a non-project, hourly basis at an hourly rate of $450, but do not participate in
Southport Capital's Financial Blueprint fee refund policy as described above. Hourly
Financial Blueprinting clients are provided an invoice for the hourly service which is payable
upon receipt.
Clients may terminate the planning agreement by written notice within three days after the
date of the agreement and receive a full refund of fees. After that, clients receive a refund
of prepaid fees less any charges for bona fide planning services rendered prior to
termination.
Portfolio Management Services Fees
Southport Capital's fees for Portfolio Management Services are based upon a percentage of
assets under management on a case-by-case basis, Southport Capital determines an
appropriate fee structure based on the size, complexity, security type, investment
objectives, and anticipated levels of rebalancing and other related aspects of the active
management nature of the account in general, fees range from 0.50% to 2.50%. The terms
and conditions of the fee structure are mutually agreed upon prior to entering into an
advisory agreement. Southport Capital may, at its discretion, make exceptions to the
foregoing or negotiate special arrangements where Southport Capital deems it appropriate
under the circumstances.
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Retirement Plan Services Fees
For retirement plan sponsors, the plan is charged the following annual fee based upon the
amount of Plan assets:
Plan Assets Annual Fees
$0 - $1,000,000 0.75%
Next $1,000,000 - $5,000,000 0.50%
Next $5,000,000+ 0.25%
Fees are negotiable based upon the complexity of the plan, the size of the plan assets, the
actual services requested, and the representative providing the services.
For individual participants, we charge a percentage of the participant’s account value. The
percentage fee ranges from 0.25% to 0.75% per year. Fees are negotiable based upon the
actual services requested and the complexity of the participant's situation. Retirement plan
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