Item 5 Fees and Compensation
Pekin Hardy generates all of its revenues from fees that are charged directly to clients. As a fee
only adviser, Pekin Hardy does not generate revenue from commissions, referrals, or sales
loads. Client accounts have different or similar investment objectives and different
compensation arrangements, including no or lower management fees. Pekin Hardy has
implemented policies and procedures reasonably designed to address conflicts of interest
related to the management of multiple accounts with different fee arrangements and to the
allocation of investment opportunities. Refer to the "Brokerage Practices" section (Item 12) of
this brochure for additional information about this and soft dollar benefits the firm receives
from brokers.
INVESTMENT MANAGEMENT FEES
Our annual fees for Investment Management are based upon a percentage of assets under
management. Our standard fees generally range from 0.50% to 1.25% per year of assets under
management.
Although Pekin Hardy has established fee schedules, we retain the discretion to negotiate
alternative fees on a client-by-client basis. Client facts and circumstances are considered in
determining fee schedules. These factors include the complexity of clients’ financial situation,
assets to be placed under management, anticipated future additional assets; related accounts;
portfolio style and account composition, and other factors. The annual fee schedule is included
in the contract, or in subsequent communication, between the adviser and each client. Fees are
calculated and billed in advance on a quarterly basis. Fees are based on the market value of
client assets at the end of the quarter. Fees are generally deducted from clients’ accounts.
We group certain, related client accounts to allow these clients to benefit from scale and receive
a lower, blended investment management fee. We offer discounted fees to certain family
members and friends of the firm’s associates and waive fees for employees.
FINANCIAL PLANNING FEES
Pekin Hardy generally includes Financial Planning services in our standard service package at
no additional cost to our clients. The firm will charge Financial Planning fees in some situations
based on the types of services being provided, the nature of the relationship, and the complexity
of clients’ circumstances. When it charges fees, Pekin Hardy assesses them upon completion of
the financial plan.
RETIREMENT PLAN FEES
Pekin Hardy will receive retirement plan fees based on the services it provides to the plans and
plan participants. Fees may be paid by the plan participant or plan sponsor. The fee will vary
based on the services provided and the amount of assets in and complexity of the plan. In
certain circumstances, Pekin Hardy may waive its fee for providing such services. Fees for
those participants with self-directed brokerage accounts for which Pekin Hardy provides
investment management services will be handled in the same way as described in the
“Investment Management Fees” section and will be paid by clients directly.
MODEL STRATEGIES FEES
Pekin Hardy charges a fee based upon a percentage of assets under management. Pekin Hardy
retains the discretion to negotiate alternative fees on a client-by-client basis. Factors used in
considering alternative fees include assets to be placed under management, anticipated future
additional assets; related accounts; and other factors. The annual fee schedule is included in the
contract. We offer discounted fees to certain family members and friends of the firm’s
associates. Fees are calculated and billed in advance on a quarterly basis. Fees are based on the
market value of client assets at the end of the quarter. Fees are generally deducted from clients’
accounts.
GENERAL INFORMATION
Termination of the Advisory Relationship. In most cases, clients and Pekin Hardy can
cancel agreements for any reason with 30 days written notice. Upon termination, Pekin Hardy
will refund unearned fees or charge fees to clients for services provided and not charged on a
prorated basis.
Investments with Embedded Management Fees. All fees paid to Pekin Hardy for
investment advisory services are separate and distinct from the fees and expenses charged by
mutual funds, exchange traded funds (ETF), and other types of securities that have embedded
management fees. These fees and expenses are described in each investment’s prospectus or
governing document. These fees will generally include a management fee, other expenses, and a
possible distribution fee. If the investment also imposes a sales charge, a client will pay an
initial or deferred sales charge. A client could invest in these assets directly without our
services. In that case, the client would not receive the services provided by our firm, which are
designed, among other things, to assist the client in determining the investments that are most
appropriate for their financial condition and objectives. Clients should review the fees charged
by these types of investments and Pekin Hardy’s fees to understand the total amount of fees to
be paid and to evaluate the advisory services being provided.
Other Fees and Expenses. In addition to our advisory fees, clients are responsible for the fees
and expenses charged by custodians and brokers, including, but not limited to, transaction
charges imposed to effect securities transactions in clients’ accounts. Please refer to the
"Brokerage Practices" section (Item 12) of this brochure for additional information.
Advisory Fees in General. Clients should note that similar advisory services may be
available from other registered (or unregistered) investment advisers for similar or lower fees.
Limited Prepayment of Fees. Under no circumstances do we require or solicit payment of
fees more than six months in advance of services rendered.
Account Valuation Practices. Pekin Hardy relies on pricing feeds from Pershing Advisor
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