Item 5. Fees and Compensation
Separately Managed Accounts, Institutions
The fees for PTCP’s investment advisory and management services are typically negotiated and will vary
depending on the specific responsibilities required by the client. The fees are based on an annual
percentage of the market value of the portfolio to be managed according to the following schedule:
Account Size $ Fees
$10 million - $25 million …….... 25 Basis Points (annualized and billed quarterly)
Next $25 million…….…………... 23 Basis Points (annualized and billed quarterly)
>$50 million ……..……….…….. 20 Basis Points (annualized and billed quarterly)
The specific manner in which fees are charged by PTCP is established in a client’s written agreement
with PTCP. PTCP will generally bill its fees on a quarterly basis. Clients are typically billed in arrears each
calendar quarter. Clients may elect to be billed directly for fees or to authorize PTCP to directly debit fees
from client accounts. Accounts initiated or terminated during a calendar quarter will be charged a prorated
fee. Upon termination of any account, any prepaid, unearned fees will be promptly refunded, and any
earned, unpaid fees will be due and payable.
PTCP’s fees are exclusive of brokerage commissions, transaction fees, trade clearing 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. Such charges,
fees and commissions are exclusive of and in addition to PTCP’s fee, and PTCP shall not receive any
portion of these commissions, fees, and costs, unless otherwise negotiated in the client agreement.
Certain private investment vehicles which PTCP may recommend charge their own management fees
and other expenses, which are disclosed in the fund’s Private Placement Memorandum. These fees and
expenses are in addition to PTCP’s fees.
Performance Trust University®
PTCP typically charges a fixed fee of $1000 per participant for Principles of Performance™, a 3-day
seminar presented at various cities throughout the United States. There may be an Early Bird registration
fee of $750. PTCP typically charges a fixed fee of $800 per participant for the Advanced Course®, a 3-
day seminar hosted by PTCP in Chicago, Illinois. PTCP also has various 1-day or 2-day seminars called
Executive Session or Earning Your Independence™, and the fee for participation ranges from $250 to
$750. Fees are charged in advance of the seminar. In the event of cancellation by the participant, fees
may be applied towards attendance at a future seminar or are refunded, less an administrative
cancellation fee of $150 (as of the date of this Brochure).
Bond Trust Investment Portfolio Accounting Service
The cost the client pays for Bond Trust is based on the number of securities positions in the portfolio,
regardless of size or type of securities and is not affected by the source of current market value
information. Fees are paid in arrears.
Fee Schedule, Single Monthly Fee per Portfolio:
Tier A: Portfolio with 0 – 75 lots $225 a month
Tier B: Portfolio with 76-150 lots $250 a month
Tier C: Portfolio with 151-225 lots $275 a month
Tier D: Portfolio with 226-300 lots $300 a month
Portfolios with greater than 300 lots Custom Pricing
Bond Trust Investment Portfolio Accounting Service may be terminated at the end of any month upon
thirty days’ notice in accordance with the client’s written agreement with PTCP.
Generally
Fees for any particular client or account are negotiable and may be waived in certain circumstances.
Fees charged may vary from client to client.
In their capacity as registered representatives of PTCP, PTCP’s supervised persons may receive
compensation based on the sale of securities or other investment products. This practice presents a
conflict of interest in that it provides an incentive to the supervised person to recommend investment
products based on the compensation received, rather than based on a client’s needs. To address this
conflict, the registered representative’s supervisor periodically reviews sales of securities and other
investment products for suitability. Clients have the option to purchase investment products that PTCP
recommends through other brokers or agents that are not affiliated with PTCP.
Commissions and other compensation for the sale of investment products that PTCP recommends to
clients provide the primary compensation of PTCP. PTCP does not reduce advisory fees to offset
commissions or markups charged by PTCP to the same clients.