Matson Money Inc

Item 5 – Fees and Compensation
Clients are assessed fees at different levels and in different ways depending upon the program(s) in which
they participate.

Matson Fund Platform & Frontier Adjusted Portfolio Platform

Clients participating in the Matson Fund Platform and the Frontier Adjusted Portfolio Platform ultimately
bear all Fund-related fees and expenses, including brokerage fees and operating expenses, as well as the
expenses derived from the underlying mutual funds in which the Free Market Funds or Matson Money
Funds invest. Assets invested in shares of the Funds are subject to embedded advisory and other fees and
expenses, as set forth in the relevant prospectus. These fees are paid by the Funds, but ultimately borne
by investors. We receive a maximum annual fee rate of 0.50% on each Fund’s average daily net assets as
described in each fund’s prospectus. As funds of funds, the Matson Funds invest in shares of other
registered investment companies. Advisers to the underlying funds, including DFA, are paid an advisory
fee by each underlying fund they manage. Thus, Clients bear their asset-based share of the fees and
expenses of each underlying fund as well as of the Free Market Fund series or Matson Money Fund series
in which their assets are invested. Neither we, nor any other party, receive a sales load in connection with
Client investments in the Funds. Matson Money does not “double dip” advisory fees, meaning that Clients
do not pay Matson Money any separate advisory fee to participate in the Matson Fund Platform or the
Frontier Adjusted Portfolio Platform above or beyond the advisory fees charged to the Funds. As noted
below, however, our affiliate Matson Capital charges advisory fees to its clients, and Matson Capital clients
may participate in the Matson Fund Platform or Frontier Adjusted Portfolio Platform and bear the Fund-
related fees and expenses discussed above in addition to advisory fees paid to Matson Capital.

Clients pay advisory fees to Referrers, including Matson Capital, separate and apart from the fees and
expenses associated with the Funds. These fees are collected by Matson Money and remitted to Referrers.
Matson Money retains no portion of these fees. Historically, these fees generally ranged from 0.25% to
1.40% of client assets under management; however, effective 2018, Matson Money reduced the maximum
allowed Referrer fee for all new clients to 1.20% of client assets under management moving forward. This
Referrer fee is agreed to either in the co-advisor’s tri-party contract or the separate Matson Money contract
for solicited clients. These fees are charged quarterly in advance and are based on quarter end values of
Client’s account(s). In addition to the Referrer fees described above, the Referrer may receive certain
benefits, such as books, other materials and/or discounted fees, in connection with training programs
sponsored by Matson Money.

For non-ERISA accounts, we typically automatically debit 100% of the Referrer fees from the Client’s
account and pay that amount to the Referrer. We comply with the requirements of the Custody Rule, Rule
206(4)-2 under the Investment Advisers Act of 1940, as amended (“Advisers Act”) with respect to automatic
deduction of Referrer fees. See Item 15, “Custody,” below, for further information. We are also willing, upon
request, to consider agreements under which the Client pays its Referrer fee directly to the Referrer. After
our approval, such an arrangement can be made between the Client and the Referrer, with notice to us.
This fee compensates the Referrer for services including maintaining the Client relationship, ensuring that
the Questionnaire remains up-to-date, and responding to Client inquiries. Although we can collect fees for
and remit fees to Referrers, we do not retain any portion of the fee paid, directly or indirectly, to the
Referrer. Not every Referrer charges the same fee, and a Referrer could charge different fees to different
Clients. Clients who invest in the Free Market Funds or insurance policies invested in the Matson Money
Funds through particular Referrers could pay lower fees to their Referrer than other Clients who invest in
the same Funds through other Referrers.

For ERISA accounts, like company retirement plans and 403(b) accounts, the Referrer fee is typically
debited by a third-party custodian selected by the plan and may be paid directly to the Referrer. We do
not retain any portion of the Referrer’s fee on ERISA accounts, and we do not debit the fee from the
accounts. However, we do instruct the custodian on the amount to be debited.

For ERISA accounts in Puerto Rico using BPAS, Referrer fees are calculated by BPAS. These fees are
collected by BPAS and paid directly to the Referrer. Matson receives no portion of these fees. These fees
are collected and paid monthly in arrears by BPAS.

Private Account Asset Allocation

Private Account Asset Allocation Clients pay fees generally in line with the following representative fee
schedule. We can negotiate fees and the timing of payment for Clients investing over $1 million with
Matson Money. Fees for Clients and the timing of payment could be negotiable under special
circumstances in our discretion.

                            Assets Under Management               Annual Rate
                            First $500,000                        2.00%
                            Next $500,000                         1.00%
                            Next $3 million                       0.75%
                            Over $4 million                       0.50%
Under the Private Account Asset Allocation Program, we pay Referrers a portion of the advisory fee we
receive from the Client(s) that they have referred to us.

In the Private Account Asset Allocation Program, we sometimes enter into arrangements to manage the
accounts of Referrers and their immediate families for reduced fees, based on the amount of assets a
...

Item 7 – Types of Clients
As noted in Item 4, above, our Clients include individuals, high net worth individuals, pension and profit-
sharing accounts, corporations and other business entities, including other investment advisers. We also
manage the Matson Funds, which are six mutual funds described in more detail in Item 4, above.

The Matson Fund Platform, the Frontier Adjusted Portfolio Program and the Private Account Asset
Allocation Platform have no minimum investment requirements. However, only existing clients of the
Private Account Asset Allocation Platform can open new accounts in that platform.