Item 5 – Fees and Compensation
Fees for these services will be based on a percentage of assets under management as follows:
Assets Under Management Annual Fee
First $200 Million 0.25%
Next $300 Million 0.20%
Over $500 Million 0.15%
These fees are negotiable and the final fee schedule will be attached as an exhibit of the Investment
Management Agreement. The management fee will be paid either monthly, in arrears, or quarterly, in
arrears, or once a year, in arrears, whichever the client prefers. The investment management fee is
based on the market value of the assets in the account, according to the Custodian accounting system.
Any fee due for less than a full calendar’s period shall be pro-rated for the time frame for which it is due.
Principal additions or principal disbursements from the account will be time-weighted. Principal
additions and disbursements are described as new funds added to the account or funds distributed out
of the account. Calculation will involve the previous month-end ending market value, plus or minus a
time-weighted amount of new funds added or funds disbursed. If no principal additions or
disbursements take place, the previous period’s month end market value will be used for the current
period for fee calculations. For purposes of fee calculations, every year will use a 365-day count.
Fees may be paid directly from the account via an invoice sent directly to the custodian, with the
appropriate calculations included. Clients should verify the accuracy of the computation. Clients may
terminate their account with thirty days written notice. Because fees are charged in arrears, no refund
policy is necessary.
If the ADV disclosure document was not delivered to the client at least 48 hours prior to the client
entering into any written or oral advisory contract with this investment adviser, then the client has the
right to terminate the contract without penalty within five business days after entering into the
contract.
Upon written receipt of notice to terminate its Client Agreement with PDR Advisors and unless specific
transfer instructions are received, PDR Advisors and its agent will, in an orderly and efficient manner,
proceed with liquidation of the Client’s account. Factors that may affect the orderly and efficient
manner would be size and types of issues, liquidity of the markets, and market makers’ abilities. Should
the necessary securities’ markets be unavailable and trading suspended, efforts to trade will be done as
soon as possible following their reopening. Due to the administrative processing time needed to
terminate Client’s investment advisory service and communicate the instructions to Client’s investment
advisor, termination orders received from clients are not market orders; it may take several business
days under normal market conditions to process Client’s request. During this time, Client’s account is
subject to market risk. PDR Advisors and its agent are not responsible for market fluctuations of the
Client’s Account from time of written notice until complete liquidation. All efforts will be made to
process the termination in an efficient and timely manner.
PDR Advisors fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses which shall be incurred by the client. Clients may incur certain charges imposed by custodians,
brokers, third party investment and other third parties such as fees charged by managers, custodial fees,
deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and
other fees and taxes on brokerage accounts and securities transactions. Mutual funds and exchange
traded funds also charge internal management fees, which are disclosed in a fund’s prospectus. Such
charges, fees and commissions are exclusive of and in addition to PDR Advisors fee, and PDR Advisors
shall not receive any portion of these commissions, fees, and costs.