Item 5 Fees and Compensation
A. In the event the client determines to implement investment recommendations through Presidium on a
fee-only basis, Presidium shall charge an annual investment management fee based upon a percentage of
the market value of the assets being managed by Presidium. All fees are deducted quarterly in advance
directly from client accounts. Presidium Partners submits the fee deduction to the custodian for processing
on the first day of the quarter. The investment management fee charged is based on the market value of the
assets under Presidium’s management and based on the tiered fee schedule below. Clients can negotiate all
these fees without terms or conditions. The fee schedule is as follows:
Assets Portion of Assets in the Tier Tiered Annual Fee %
$0-$299,299 (Next $200,000 of the account) 2.00%
$300,000-$499,999 (Next $200,000 of the account) 1.75%
$500,000-$749,999 (Next $250,000 of the account) 1.50%
$750,000-$999,999 (Next $250,000 of the account) 1.25%
$1,000,000 + (Rest of the account) 1.00%
Presidium’s hourly fee is $250 per hour. Hourly billing is billed at project completion.
B. Presidium annual investment management fee shall be prorated and paid quarterly, in advance, based
upon the market value of the assets on the last day of the previous quarter. Further, Presidium may not
assess an advisory fee where the firm offers advisory services to employees or family members of related
persons.
Unless the client directs otherwise, all such investment management accounts will be maintained at various
custodial/clearing firms, or at the specific mutual fund or insurance company that issued the mutual fund or
variable life/annuity product. Prior to engaging Presidium to provide investment management services, the
client will be required to enter into a formal Investment Advisory Agreement with Presidium setting forth
the terms and conditions under which Presidium shall manage the client’s assets, and (to the extent
applicable and/or required) a separate agreement with the custodial/clearing firm, the specific mutual
fund/insurance company, or other designated broker-dealer/custodian. Both Presidium investment advisory
agreement and custodial/clearing agreement may authorize the designated custodian to debit the account for
the amount of the Presidium’s management fee and to directly remit that management fee to Presidium in
accordance with required SEC procedures. This investment advisory agreement between Presidium and the
client will continue in effect until terminated by either party by written notice in accordance with the terms
and conditions of the Investment Advisory Agreement. Presidium’s investment management fee shall be
pro-rated through the date of termination, and the remaining balance (if any) shall be promptly refunded to
the client.
C. To the extent applicable, custodians and/or broker-dealers generally charge transaction fees and/or
commissions for effecting certain securities and mutual fund transactions. In addition to Presidium’s
investment management fee, brokerage commissions and/or transaction fees, the client will also incur,
relative to all mutual fund purchases, charges imposed directly at the mutual fund level (e.g. advisory fees
and other fund expenses).
D. As mentioned above all client fees are prorated and paid quarterly, in advance, based upon the market
value of the assets on the last day of the previous quarter. Presidium’s investment management fee shall be
pro-rated through the date of termination, and the remaining balance (if any) shall be promptly refunded to
the client.
E. Presidium is a fee only investment advisor. No commissions or asset based sales charges are received
from the sale of mutual funds in order to eliminate the potential for conflict of interests. In recommending
mutual funds, Presidium primarily recommend’s no-load funds. Where outside investment managers, wrap
programs, registered investment advisors or other advisors are used in connection with the client’s
investment portfolio, revenue sharing arrangements are fully disclosed to the client. Investment products
recommended by Presidium are generally available to the client through other brokers or agents that are
unaffiliated with Presidium.
Factors, which Presidium considers in recommending a particular broker-dealer/custodian to clients,
include financial strength, reputation, execution, pricing, research, and service. Generally, the broker-
dealer/custodians recommended by Presidium enable Presidium to obtain many no-load mutual funds
without transaction charges and other no-load funds at nominal transaction charges. In addition, such
recommended firms generally charge commission rates and/or transaction fees, which are generally
considered, discounted from customary retail rate fees. However, the commission fees charged by
recommended firms may be higher or lower than those charged by other broker-dealer/custodians.
Presidium will not receive any portion of the brokerage commissions and/or transactions fees charged to
fee-only clients. In return for effecting securities transactions through a designated broker-dealer/custodian,
Registrant may receive certain investment research products and/or services which assist Presidium in its
investment decision-making process for the client, all of which transactions shall be in compliance with
Section 28(e) of the Securities Exchange Act of 1934.
The brokerage commissions and/or transaction fees or other designated broker-dealer/custodian are
exclusive of, and in addition to, Presidium’s investment management fee. Although the commissions paid
by Presidium’s clients shall comply with the Registrant’s duty to obtain best execution, a client may pay a
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