Matson Financial Advisors Inc

Item 5. Fees and Compensation

Believing that clients should know the adviser fee for services in advance, MFA works with a
client to determine the Financial Consult, Financial Planning, or Ongoing Planning and Wealth
Management fee based on the types and level of services actually provided, rather than aligning
the fee specifically to the value of client assets or net worth. MFA provides financial planning
and investment advisory deliverables that assist in determining the scope of work required by the
client.

Financial Consult. Adviser may offer clients one-time financial planning or consultative
engagements for a flat dollar fee. This flat fee will be agreed in advance and will be based on
the estimated time required for and the complexity of the planning work requested by client.
Examples of these engagements include assistance with estate planning or the probate process,
plans for exercising employer-issued options or restricted stock units, and review of personal or
business insurance. This fee will generally range from $1,250 to $5,000 and is payable once the
planning work is completed.

Financial Planning. Upon execution of a financial planning agreement, clients will pay a one-
time planning fee that will typically range from $2,500 to $10,000, paid at time of plan review.
This fee includes data gathering, data input and plan preparation, presentation of the financial
plan and Adviser recommendations, and any additional follow-up pertinent to providing a finalized
plan and recommendations.

Ongoing Financial Planning and Wealth Management. During the term of an ongoing financial
planning and wealth management agreement, clients will pay an annual fixed fee that will typically
range from $2,500 to $50,000, in semiannual or quarterly installments, and in arrears. Adviser
fees are subject to annual review and may increase by three to five percent each year. Clients
will be advised in advance of any change in fees. Fees are based on the particular services
selected and, on the nature, and complexity of client circumstances. Selection of services is
assessed through dialogue with clients to determine the scope of services required.

MFA invoices clients on a quarterly, semiannual, or annual basis in arrears. Generally, adviser
fees are deducted directly from client assets held at the account custodian.

MFA has provided advisory services to select legacy clients for fees based on a percentage of
assets under management. Generally, the annual fees have ranged from 0.40% to 1.25% of
assets under management. These adviser fees are invoiced in arrears and deducted directly from
client assets held at the account custodian.

All fees paid to MFA for planning and ongoing wealth management services are separate and
distinct from the fees and expenses charged by mutual funds and exchange-traded funds (each
an “ETF”) to shareholders. These fees and expenses are described in the prospectus of each
mutual fund or ETF and generally include a management fee and other fund expenses, such as
rule 12b-1 distribution fees. Accordingly, clients should review both the fees charged by their
fund investments and the adviser fee charged by MFA to fully understand the total amount of fees
that they are paying.

All fees paid to MFA for planning and ongoing wealth management services are separate and
distinct from trading and transaction fees charged by broker-dealers associated with the purchase
or sale of equity securities, fixed-income securities, mutual funds, and ETFs. Clients are solely

responsible for all trade commissions and other transaction charges. A current fee schedule for
trading through Pershing LLC is available upon request. Additional information about brokerage
and transaction costs is provided in the section of this brochure entitled “Brokerage Practices.”

Clients are responsible for charges related to the custody of securities in accounts managed by
MFA. These charges may include account service fees, asset movement fees, account transfer
fees, account closing fees, checking fees, statement fees and optional services selected by the
client. Any fee or expense that increases the total client cost will reduce the value of client
investments over time.

The Letter of Agreement with a client may be canceled at any time by either party for any reason
upon prior written notice. Upon termination, MFA will have no further obligation to act or advise
with respect to client assets.

In certain circumstances, MFA financial advisors may receive compensation for the sale of
securities or other investment products, including asset-based sales charges, distribution fees,
or service fees from mutual funds. Receiving compensation in the form of asset-based sales
charges or service fees presents a conflict of interest, as the arrangements may incentivize MFA
financial advisors to recommend investment products based on the compensation received
rather than on client needs. This conflict is avoided by recommending institutional share classes,
where available, and stocks, bonds, and ETFs that do not pay asset-based commissions or
service fees. The adviser fee that clients pay MFA are determined with an understanding and
consideration of any potential future compensation that may be paid to MFA financial advisors
over time. Commissions and other compensation for the sale of investment products previously
recommended to clients, including asset-based distribution fees from mutual funds, represents
less than 3% of MFA’s advisory revenue. Ongoing planning and wealth management invoices
will not be offset by future asset-based commission or markups. Clients have the option to
purchase investment products that MFA recommends through broker-dealers and other agents
that are not affiliated with MFA.

Item 7. Types of Clients

MFA provides financial planning and wealth management services by combining financial
planning and investment management for individuals, trusts, not-for-profit organizations, and
retirement plans. MFA does require an account or relationship minimum fee in order to maintain
an account or to establish a relationship. There is a minimum annual fee of $2,500 for ongoing
financial planning and wealth management services.