Item 5: Fees and Compensation
A. Fee Schedule
Fees for Portfolio Management - (PVI-direct clients)
Below is the maximum annual fee schedule for PVI-direct clients. PVI allows its investment
adviser representatives to negotiate a fee subject to approval by PVI’s management. The
agreed upon fee is attached as Exhibit II of the Investment Advisory Contract.
Total Assets Under Management Annual Fee
$0 - $2,000,000 1.80%
$2,000,001 - $20,000,000 1.50%
$20,000,001 - $100,000,000 1.20%
$100,000,001 – and up 1.00%
PVI strives to bill clients for services rendered in accordance with its written agreement with
clients.
PVI’s Investment Advisory Contract and other applicable documentation reflects that annual
fees are prorated and payable quarterly, in advance, based upon the market value of cash and
securities in the Account on the first day of the billing period.
If an agreement or account is opened at any time other than the first day of a Calendar
Quarter, fees may be applied on a pro rata basis. In these cases, the advisory fee is payable in
proportion to the number of days in the quarter for which the assets will be under
management and will be valued as of the day before or on when PVI begins managing the
Assets.
PVI’s billing specialist will cause client accounts to be billed using the market value of the
account on the first day of each billing period or the ending balance of the prior quarter. They
will instruct the custodian to deduct client fees promptly, and within a reasonable amount of
time after the start of the calendar quarter end. The billing specialist should seek to have fees
deducted within ten business days, but in any event within fifteen business days unless for
circumstances that prevent this process from occurring.
For accounts opened during the quarter, the billing specialist should seek to have those fees
deducted within a reasonable amount of time, but in any event within fifteen business days.
Investment adviser representatives may elect to waive fees for an initial quarter.
Billing may include pending dividends and other coupons reflected in the underlying but not
yet reflected in the custodial account. This may be known within the industry as an accrual-
based method.
PVI reserves the right to use third party software providers that specialize in the automation of
the billing process.
Clients may terminate the Investment Advisory Contract generally with 30 days' written notice.
In the event of termination, PVI will provide clients with a refund based on the number of days
elapsed in the billing period.
Investment Management Services through Tri-Party Agreements Fees (Referred Clients)
Referred Clients are responsible for paying the fees outlined on Exhibit C to the Tri-Party
Agreement.
Referred Clients will pay a fee to the Adviser and PVI for their respective services. The total
annual fee rate that a Referred Client will pay will not exceed 2.0%.
PVI’s annual fee will be prorated and paid quarterly, in advance, based upon the market value
of cash and securities in the account on the first day of the billing period. The Adviser’s annual
fee will be prorated and paid monthly, in advance, based upon the market value of cash and
securities in the account on the first day of the billing period.
When applicable (e.g., January 1, April 1, July 1, October 1), the Adviser’s fee and PVI’s fee are
calculated at the same time based on the total market value of cash and securities in the
account.
If the Tri-Party Agreement is executed at any time other than the first day of a billing period,
fees will apply on a pro rata basis. In these cases, both the Adviser’s and PVI’s fee will be
determined based on the number of days remaining in the period and the value of the assets
will be determined as of the business day prior to PVI beginning to manage the assets.
Selection of Other Advisers Fees
PVI will receive its standard fee on top of the fee paid to the third-party adviser. This
relationship will be memorialized in each contract between PVI and each third-party adviser.
PVI may engage in the selection of third-party money managers but does not have any such
arrangements in place at this time.
Pension Consulting Services Fees
PVI generally charges pension plans and other employee benefit plans an asset-based fee for
rendering its services to these plans. The actual fees are negotiated between the client and
PVI and are memorialized in the agreement between the parties.
Subadvisor Services Fees
PVI may also act as a subadvisor to unaffiliated third-party advisers and PVI would receive a
share of the fees collected from the third-party adviser’s client. The fees charged will not
exceed any limit imposed by any regulatory agency. This relationship will be memorialized in
each contract between PVI and the third-party adviser.
Affiliated Private Fund Fees
PVI or its affiliates serve as investment adviser, general partner, managing member, or in a
similar capacity to the Affiliated Private Funds. These Affiliated Private Funds charge their own
fees and expenses, which are described in the applicable offering documents. When PVI
recommends that a client invest in an Affiliated Private Fund, the client will not be charged a
separate advisory fee by PVI on the assets invested in the Affiliated Private Fund. Instead, the
client will bear their proportionate share of the fees and expenses charged by the Affiliated
Private Fund, which may include, but are not limited to: management fees; performance-
based fees or incentive allocations; fund operating expenses; and administrative and other
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