Item 5: Fees and Compensation
Clients participating in the asset consulting service are required to enter into an investment advisory
agreement (“agreement”). This agreement may be terminated at will upon written notice by either party
to the other and termination will become effective upon receipt of such notice. Termination shall not
affect any liability resulting from transactions initiated before Prairie Capital Management, LLC receives
written notice of termination. Upon termination of agreement, any fees paid in advance will be prorated,
and the client will be entitled to a refund from the date of termination through the end of the billing
period. To the extent that there are amounts owed by client to Prairie Capital Management, LLC upon
the date of termination of the agreement, the client will immediately pay such amounts to Prairie Capital
Management, LLC without further notice or demand. Clients shall have the right to terminate the
agreement, without penalty, within five business days of the date of execution of this agreement by client
and to receive a full refund of all amounts paid in advance to Prairie Capital Management, LLC.
Investment advisory services are generally provided for a fee based on a percentage of the assets under
management as follows:
Assets under Management Fee
$500,000 to $1,000,000 2.2%
$1,000,001 to $5,000,000 1.6%;
$5,000,001 to $10,000,000 1.4%
$10,000,001 plus 1.1%
Generally, a minimum annual fee of $15,000 will apply to all accounts. These fees are guidelines only, and
are to be negotiated with each client. The fee is calculated by applying the applicable schedule of fees to
the value of assets under management on the last day of each calendar month or quarter, whichever is
applicable.
Investment advisory services may be provided to Clients for a flat quarterly or monthly fee based on a
combination of factors; including, but not limited to, the total assets under management and the specific
advisory services provided to the client. The flat fee is reviewed with the client periodically and adjusted
according to mutual agreement between Prairie Capital Management, LLC and the client.
Certain asset consulting services may be provided on a fixed-fee basis. For example, the origination of an
investment policy statement and asset allocation study and a manager search may be performed on a
fixed-fee basis. Some of these fixed fees may be payable in addition to the fees based on a percentage of
assets under management. The fees will be based on the extent of efforts involved in the asset consulting
services determined by the requests of the client, and thus will be determined pursuant to negotiations
between Prairie Capital Management, LLC and the client. Generally, a basic fee for the origination of an
investment policy statement asset allocation study will be $3,000, and a full manager search will be
$10,000. Compensation is payable when the asset consulting services are begun by Prairie Capital
Management, LLC.
Investment advisory services may be provided to clients for performance based fees. These fees are
typically based on a share of capital gains on or capital appreciation of the assets of a client. Additional
information regarding performance based fees may be found in Item 6.
On a case-by-case basis, certain asset consulting services may be provided on the basis of hourly charges
upon request of a client. The principals of Prairie Capital Management, LLC will charge $400 per hour
payable on a monthly basis, or as otherwise negotiated.
Prairie Capital Management, LLC’s fee is typically billed to and paid by the client’s custodian(s) from the
assets of the client’s portfolio. The client may request to be billed directly. Direct bills are due upon
receipt. Fees are calculated and payable either monthly or quarterly pursuant to the Agreement with
client.
With respect to the mutual funds and other pooled investment products held in the client’s account, fees
payable to Prairie Capital Management, LLC are in addition to the expenses and advisory fees borne by
such holdings, including sales charges and transaction fees. Prairie Capital Management, LLC’s fee could
be avoided if the Client invested directly in such holdings. Prairie Capital Management, LLC’s affiliated
registered securities broker-dealer, UMB Financial Services, Inc. or other broker-dealers may receive a
portion of some trading commissions and fees collected by the entity through which trades of clients are
cleared. In instances in which Prairie Capital Management, LLC recommends to its clients, and clients
invest in mutual funds, Prairie Capital Management, LLC, through UMB Financial Services, Inc., may
indirectly receive ongoing 12b-1 fees paid by the mutual funds in which Prairie Capital Management LLC’s
clients invest. Additional information regarding brokerage accounts can be found in Item 12.