Item 5 – Fees and Compensation
Advisory Clients
PCAs advisory fees are negotiable and based on a percentage of assets under management. Fees are
memorialized in a client’s written agreement with PCA and billed on a quarterly basis, in arrears. The standard
fee schedule is listed below but fee rates may vary from client to client.
Assets Annual Advisory Fees
On the first $0 – $9,999,999 0.75% per annum
On the next $10,000,000 – $24,999,999 0.50% per annum
On the next $25,000,000 – $49,999,999 0.35% per annum
On the next $50,000,000 – $249,999,999 0.25% per annum
On the $250,000,000 and above 0.20% per annum
remaining
Advisory fees are generally billed and debited from the client’s account(s) held at the custodian. The client
invoice will detail the amount of the fees, the value of the account(s) assets in the period in which the fees are
based, and the contracted fee rate. The custodian must provide a statement to the client on a quarterly basis
at a minimum, which will include account values and fee transactions paid directly to PCA. Advisory fees are
calculated based on the market value of all assets in the portfolio on the last trading day of each calendar
quarter. For purposes of calculating asset-based fees, client assets generally are valued based on the value
ascribed to the assets by the client’s custodian. However, shares of or interests in mutual funds, hedge funds,
private equity funds and similar pooled investment vehicles will be based on the most recent prices during
each billing period and are provided by the fund or manager itself.
PCA’s 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 investments 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, exchange traded funds, hedge funds, private
equity funds and other pooled investment vehicles also charge internal management fees, which are disclosed
in a fund’s prospectus or other offering materials. Our services may be terminated by the client or by PCA
upon thirty (30) calendar day prior written notice, without penalty.
Additionally, PCA has a relationship that is charged a flat negotiated consulting fee for advisory services. This
is charged quarterly in advance.
Private Vehicles
PCA currently serves as the investment manager, and/or sub-advisor to certain private funds and PCA may
form additional partnerships in the future. Investments in commingled funds may include management and
fund administration fees, carried interest, and other vehicle expenses. A complete explanation of all fees and
expenses charged by commingled funds is contained in each funds’ offering documents, which should be read
carefully.
Interests in these private vehicles are made available to our advisory clients. In the cases where our advisory
clients are charged a management fee by the private fund, clients do not pay an advisory fee to PCA for those
investments. In those vehicles Investors that are not current PCA advisory clients, and who invest in private
vehicles where PCA is the investment manager or sub advisor, will pay fees in an amount and frequency that is
disclosed in the private fund’s offering documents or, if applicable, a side letter with the Investor.
Sales and client service personnel of PCA are not compensated for referring client accounts to PCA, for sales of
the commingled funds offered to clients, or for client account portfolio transactions. Sales and client service
personnel of PCA do not receive asset-based sales charges or service fees from the mutual funds and exchange
traded funds that clients invest in.