Item 5 Fees and Compensation
A. INVESTMENT ADVISORY SERVICES
The client can engage MPW to provide discretionary and/or non-discretionary investment
advisory services on a fee basis. MPW’s negotiable annual investment advisory fee shall
generally be based upon a percentage (%) of the market value of the assets placed under
MPW’s management, between negotiable and 1.125% as follows:
Market Value of Portfolio Annual Fee %
First $1,000,000 1.125%
Next $1,000,000 1.000%
Next $3,000,000 0.750%
Next $5,000,000 0.500%
The balance over $10,000,000 Negotiable
As an illustrative example, a client subject to the above fee schedule placing $1,500,000
under MPW’s management would be subject to an annual fee of 1.125% on the first
$1,000,000 and an annual fee of 1.000% on the remaining $500,000.
Please Note: MPW, in its sole discretion, may charge a lesser investment advisory fee,
charge a flat fee, waive its fee entirely, or other enter into some other fee arrangement with
clients based upon certain criteria (i.e. anticipated future earning capacity, anticipated
future additional assets, dollar amount of assets to be managed, related accounts, account
composition, prior fee schedules, competition, negotiations with client, etc.). As result of
the above, similarly situated clients could pay different fees. In addition, similar advisory
services may be available from other investment advisers for similar or lower fees.
MWP adjusts its advisory fee based upon any deposits or withdrawals made during the
billing period (adjusted on a daily basis) with advisory fees reconciled in the following
quarterly billing cycle.
FINANCIAL PLANNING AND CONSULTING SERVICES (STAND-ALONE)
To the extent specifically requested by a client, MPW may determine to provide financial
planning and/or consulting services (including investment and non-investment related
matters, including estate planning, insurance planning, etc.) on a stand-alone fee basis.
MPW’s planning and consulting fees are negotiable, depending upon the level and scope
of the service(s) required and the professional(s) rendering the service(s). MPW requires a
retainer prior to beginning the planning process and requires the balance due upon delivery
of the plan to the client.
RETIREMENT PLAN SERVICES
MPW’s retirement plan services fees are negotiable and such fees can be charged on an
asset-based, hourly, or fixed fee basis, or any combination thereof, in accordance with the
terms of the client’s Retirement Plan Services Agreement. Fees for MPW’s retirement plan
services shall vary depending upon various objective and subjective factors, including but
not limited to: the amount of plan assets; the scope and complexity of the engagement; the
anticipated number of meetings and servicing needs; anticipated future additional assets;
the professional(s) rendering the service(s); and negotiations with the client. As a result of
these factors, similarly situated plans could pay different fees, and the services to be
provided by MPW to any particular plan could be available from other advisers at lower
fees.
B. Clients may elect to have MPW’s advisory fees deducted from their custodial account.
Both MPW’s Investment Advisory Agreement and the custodial/clearing agreement may
authorize the custodian to debit the account for the amount of MPW’s investment advisory
fee and to directly remit that management fee to MPW in compliance with regulatory
procedures. In the limited event that MPW bills the client directly, payment is due upon
receipt of MPW’s invoice. For Investment Advisory Clients, MPW shall deduct fees and/or
bill clients quarterly in advance, based upon the market value of the assets on the last
business day of the previous quarter, with prorated adjustments for account deposits and
withdrawals made during the following billing cycle. For most 401(k) and profit-sharing
account, MPW shall deduct fees and/or bill clients quarterly in arrears, based upon the
market value of the assets on the last business day of the previous quarter.
As discussed below, unless the client directs otherwise or an individual client’s
circumstances require, MPW shall generally recommends that Charles Schwab & Co., Inc.
(“Schwab”) or Ascensus serve as the broker-dealer/custodian for client investment
management assets. Broker-dealers such as Schwab and Ascensus charge brokerage
commissions and/or transaction fees for effecting certain securities transactions in
accordance with its brokerage commission and transaction fee schedule. The types of
securities for which transaction fees, commissions, and/or other type fees (as well as the
amount of those fees) shall differ depending upon the broker-dealer/custodian. While
certain custodians, including Schwab and Ascensus, generally (with the potential exception
for large orders) do not currently charge fees on individual equity transactions (including
ETFs), others do. In addition to MPW’s investment management fee and any applicable
brokerage commissions and/or transaction fees, clients will also incur, relative to all mutual
fund and exchange traded fund purchases, charges imposed at the fund level (e.g.
management fees and other fund expenses). There can be no assurance that Schwab and
Ascensus will not change their transaction fee pricing in the future. Schwab and Ascensus
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