Item 5: Fees and Compensation
The fees we charge our advisory clients vary depending upon several factors including the types of
investments permitted, the personnel providing the advisory services, the particular strategy, the size of portfolio
being managed, the relationship with the client, and service requirements associated with the account.
Form ADV, Part 2A
3/29/2024
Fees may also differ based on account type (e.g., a commingled, pooled account or a separate individual
portfolio account).
Fees for Discretionary Advice – Separate Accounts
We generally receive compensation calculated as a percentage of assets we manage. We receive this
compensation after a service is provided, and we bill in arrears on a monthly or quarterly basis. For some accounts
based on assets under management, we charge a minimum fee and for some we apply a fee cap. Related client
accounts can be aggregated for purposes of applying fee breakpoints.
As a general guideline, we charge the following range of fees for investment advisory services for fixed-
income separate account management:
Fixed-Income Assets Under Management Annual Rate
(basis points)
First $50,000,000 6 - 30
Next $50,000,000 5 - 20
Next $100,000,000 4.5 - 15
Next $100,000,000 4-5
Above $300,000,000 3-4
For fixed-income separate account management, we generally charge a minimum annual fee of $40,000.
The minimum annual fee may be waived or reduced. Generally, the fees we charge are calculated based on the
value of the assets as determined by us using the agreed-upon measure in the contract with our client, typically
month end market value of assets or amortized value plus accrued interest, as determined on a daily basis in good
faith by PFMAM.
As a general guideline for the OCIO discretionary management, we charge the following range of fees for
investment advisory services:
OCIO Assets Under Management Annual Rate
(basis points)
Up to $25,000,000 12 - 36
Next $75,000,000 8 - 20
Next $150,000,000 8 - 10
Next $250,000,000 5-8
Thereafter 2-5
For OCIO discretionary management, we generally charge a minimum annual fee of $25,000. The minimum
annual fee may be waived or reduced. Generally, the fees we charge are calculated based on the value of the assets
as determined by us using the agreed-upon measure in the contract with our client, typically market value of assets
or amortized value plus accrued interest, as determined by the custodian on settlement date.
Form ADV, Part 2A
3/29/2024
Registered Investment Company and Pools
The fees we charge for the investment services we provide to the registered investment company and local
government investment pools vary by program. The fee schedule may include various breakpoints depending on
asset levels and may include fee caps or waivers which can be triggered by the overall expense ratio of the pool. We
may also receive compensation for the marketing and administrative services we provide (through ourselves or an
affiliate) to the registered investment company or local government investment pools.
We generally provide these administrative and marketing services as an integral part of our investment
advisory services, and the fees we receive for these services may be included as a component of the investment
advisory fees we charge.
Non-discretionary Advice
We generally charge fixed fees for these services, depending upon the services that the client requests, and
the complexity of the services.
We also offer non-discretionary advice on certificate of deposit investment programs, which are designed
to provide clients with a fixed rate to a fixed maturity date. Fees typically range up to 0.25% per annum of the cost
of the investment purchased by our clients. Under the certificate of deposit programs, we provide clients with the
option to set aside moneys in client accounts to pay our fee after we have performed the service.
Consulting Services
For investment consulting services we generally charge clients either a fixed fee or a fee that is based on a
percentage of assets. The fixed fee is based on the size of the portfolio, complexity, and scope of services which we
perform. As a general guideline, we charge asset-based fees in a range from 0.05% to 0.30% annually, based on the
characteristics listed above. From time to time, we charge hourly fees for these types of services.
Structured Products
In these engagements, we usually charge a fixed fee. We and our clients agree upon a fee at the outset of
each of these engagements and the fee is a function of the size and complexity of the engagement. The client may
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