Item 5: Fees and Compensation
Princeton Portfolio Strategies Group charges an investment advisory management fee that is based on a percentage
of a client’s assets under management. PPSG’s minimum account size is $1 million, although the Firm has the
discretion to accept accounts below $1 million
Below is our standard Annual Management Fee schedule in effect for new client relationships.
Assets Under Equity and Balanced Fixed Income
Management Accounts Accounts
First $1 million 1.25% 0.50%
Next $2 million 1.00% 0.50%
Next $2 million 0.75% 0.50%
Over $5 million 0.50% Negotiable
The table above represents PPSG’s basic fee schedule. PPSG retains the right to negotiate fees at its discretion. We
may agree to vary our standard fee schedule based on such criteria as the level of client assets under management
and/or the level of service required by the client, historical relationship, related accounts, etc. The fee we charge is
listed in a client’s Management Agreement with us.
All investment advisory management fees are charged quarterly in advance. Billing is based upon the market value
of the client’s portfolio as of the last business day of the prior quarter’s end. PPSG reserves the right, at its discretion
to:
• Pro-rate the quarterly billing for capital contributions or distributions; and
• Accommodate clients who prefer a different method of calculating their account value for billing purposes.
PPSG’s management fees are deducted from a client’s custodial account. Both PPSG’s Management Agreement and
the custodial/clearing agreement authorize the custodian to debit the account for the amount of PPSG’s
management fee and to directly remit that fee to PPSG in compliance with regulatory procedures. In the limited
event that PPSG agrees to bill a client directly, payment is due upon receipt of PPSG’s invoice.
Other Types of Advisory-Related Fees and Expenses
Other expenses borne by the client, but not received by PPSG, may include fees imposed by custodians, brokers,
and other third parties. Such fees may include, but are not limited to brokerage commissions, transaction costs,
wire transfer and electronic fund transfer fees, and other fees and taxes on brokerage accounts and securities
transactions.
Form ADV Part 2A 4 March 31, 2021
Mutual funds and exchange-traded funds may also charge internal management fees and charge for other fund
expenses. The total expenses are generally referred to as an expense ratio. These fees and expenses are
described in each fund’s prospectus.
Item 12 further discusses brokerage and includes a description of the factors we consider in selecting or
recommending broker-dealers for client transactions and how we determine that the commissions paid to the
broker-dealers are reasonable.
Termination of the Advisory Relationship
The Investment Advisory Agreement may be terminated at any time, by either party, for any reason, upon
receipt of written notice.
Upon termination PPSG will refund to the terminating client any prepaid, unearned fees. In calculating a client’s
reimbursement of fees, we will pro rate the reimbursement according to the number of days remaining in the
billing period. The client’s written termination notice will serve as a request for reimbursement of prepaid,
unearned fees.
ERISA Accounts
PPSG is deemed to be a fiduciary to advisory clients that are employee benefit plans or individual retirement
accounts (IRAs) pursuant to the Employee Retirement Income and Securities Act (“ERISA”), and regulations
under the Internal Revenue Code of 1986 (the “Code”), respectively. For ERISA clients, and non-ERISA clients
alike, we will not engage in prohibited transactions and will not receive commissions, 12b-1 fees or any other
form of compensation from any investment product we may recommend.
Miscellaneous Disclosures: Non-Advisory Service Compensation
• PPSG may receive compensation for non-investment related services such as administrative family office
services. The fees for such service may be set at a fixed amount or an hourly charge. The compensation
arrangement is negotiated between the client and PPSG and is set forth in the written service agreement
between PPSG and the client.
• Non-advisory service fees are paid directly by the client in quarterly installments, in arrears. PPSG will not
deduct such fees from the client’s custodial account.