ITEM 5: FEES AND COMPENSATION
PSG offers its services on a fee basis, which may include hourly and/or fixed fees, as well as fees
based upon assets under management. Additionally, certain of PSG’s Supervised Persons, in their
individual capacities, may offer securities brokerage services and insurance products under a
commission arrangement. All clients, but especially those with smaller accounts should be advised
they may receive similar services from other professionals for higher or lower overall costs.
Financial Planning Fees
PSG may charge a fixed fee and/or hourly fee for financial planning and consulting services. These
fees are negotiable, but generally range from $500 to $50,000 on a fixed fee basis and/or from
$200 to $1,000 on an hourly rate basis, depending upon the level and scope of the services
and the professional rendering the financial planning and/or the consulting services. If the client
engages PSG for additional investment advisory services, PSG may offset all or a portion of its fees
for those services based upon the amount paid for the financial planning and/or consulting services.
Prior to engaging PSG to provide financial planning and/or consulting services, the client is
required to enter into a written agreement with PSG setting forth the terms and conditions of
the engagement. Generally, PSG requires the financial planning fee (estimated hourly or fixed)
payable upon entering the written agreement.
Investment Management Fees
PSG provides investment management services for an annual fee based upon a percentage of
the market value of the assets being managed by PSG. PSG’s annual fee is exclusive of, and in
addition to brokerage commissions, transaction fees, and other related costs and expenses which
are incurred by the client. PSG does not, however, receive any portion of these commissions, fees,
and costs. Generally, for assets held at the firm’s primary custodian, PSG’s annual fee is
prorated and charged quarterly, in arrears, based upon the average daily balance of the assets
during the previous billing period. For other held-away accounts, PSG’s annual fee is prorated and
generally charged quarterly, in arrears, based upon the closing account value on the last day of the
previous billing period, calculated on a gross basis for any client with an active margin account. The
overall annual fee varies (between 0.50% and 2.50%) depending upon the market value of the
assets under management
PSG, in its sole discretion, may negotiate to charge a lesser management fee based upon certain
criteria (i.e., anticipated future earning capacity, anticipated future additional assets, dollar
amount of assets to be managed, related accounts, account composition, pre-existing client,
account retention, pro bono activities, etc.).
Retirement Plans
Generally, PSG’s fees for services to retirement plans are either a fixed fee ranging from $1,000 to
$30,000 or 0.25% to 1.0% per annum based on a percentage of the gross market value of a plan’s
assets managed by PSG. Any fees charged outside of the above stated range must be approved by
the PSG Chief Compliance Officer. Fees are negotiable and will be determined by the scope and
nature of the services provided, the size of the account, the complexity of the plan document and
other factors.
Fees Charged by custodians
Clients may incur certain charges imposed by their account custodian and other third parties such
as fees charged by third party managers, custodial fees, charges imposed directly by a mutual fund
or ETF in the account, which are disclosed in the fund’s prospectus (e.g., fund management fees
and other fund expenses), 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 PSG’s fee.
When recommending mutual funds that have multiple share classes, PSG will take into account the
internal fees and expenses associated with each share class, and select the most cost effective
share class that still meets the client’s needs and objectives and is available to the client.
Fee Debit
PSG’s Agreement and the separate agreement with any custodians may authorize PSG or
Independent Managers to debit the client’s account for the amount of PSG’s fee and to directly remit
that management fee to PSG or the Independent Managers. Any custodians recommended by PSG
have agreed to send a statement to the client, at least quarterly, indicating all amounts disbursed
from the account including the amount of management fees paid directly to PSG.
Fees for Management During Partial Quarters of Service
For the initial period of investment management services, the fees are calculated on a pro rata basis.
The Agreement between PSG and the client will continue in effect until terminated by either
party pursuant to the terms of the Agreement. PSG’s fees are prorated through the date the assets
are transitioned from PSG’s termination and any remaining balance is charged or refunded to the
client, as appropriate.
Clients may make additions to and withdrawals from their account at any time, subject to PSG’s
right to terminate an account. Additions may be in cash or securities provided that PSG reserves
the right to liquidate any transferred securities or decline to accept particular securities into a
client’s account. Clients may withdraw account assets on notice to PSG, subject to the usual and
customary securities settlement procedures. However, PSG designs its portfolios as long-term
investments and the withdrawal of assets may impair the achievement of a client’s investment
objectives. PSG may consult with its clients about the options and ramifications of transferring
securities. However, clients are advised that when transferred securities are liquidated, they are
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