Principal Securities Inc

Item 5 – Fees and Compensation

General Information
The range of fees paid by Advisory Clients to Principal Securities and/or the TPMM is variable and
depends both on the specific TPMM Program selected and the amount of assets invested.

With the TPMM Programs sponsored by unaffiliated advisors, comparable programs or services may be
available from other sources for fees lower than those specified in this Brochure. An investor can choose
to purchase securities directly, rather than through an advisory program. By purchasing directly, the
investor would not pay an advisory fee.

Fees paid to Principal Securities are typically negotiable, as are fees paid to some TPMMs. In some
situations, account minimums that are lower than the stated minimum may be allowed. Each TPMM has
its own procedures related to householding accounts for the purpose of receiving a lower fee. Please
read each TPMM’s Form ADV Part 2A or Appendix 1 of Form ADV Part 2A for more information about
their fees, including but not limited to how fees are collected, if they are negotiable, householding
accounts and if any early termination fees apply.

The advisory fees charged to a Program Account do not include investment management fees, 12b-1
distribution fees and other operating fees and expenses of the underlying mutual funds, ETFs or other
securities. As an investor, the Advisory Client will bear a proportionate share of these fees, which
decrease potential positive returns and increase potential negative returns. Additionally, portfolio
management programs contain separate account management fees not included in the Principal
Securities advisory fee. These separate account management fees also decrease potential positive
investment returns and increase potential negative investment returns of the programs.

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Promoter Arrangement
Under a promoter arrangement, an Advisory Client does not pay Principal Securities any fees directly.
All fees are calculated and collected by the TPMM who in turn will pay a portion of the fees it collects to
Principal Securities as a promoter’s fee. The promoter fees can range from .07% - 1.5% of account assets
under management, or up to 50% of the advisory fee, depending on the agreement between Principal
Securities and the TPMM. Each TPMM determines the minimum investment for their products. The
minimum investment can range from no minimum up to $1,000,000.

Please refer to each TPMM’s Form ADV Part 2A or Appendix 1 of Form ADV Part 2A disclosure brochure
for more information regarding minimum investment requirements and fees.

Investment Adviser Arrangement
Under an investment adviser arrangement, Principal Securities contracts with the Advisory Client for a
fee that is separate from the fee assessed by the TPMM. Principal Securities’ fee is charged and
collected from the Program Account by the TPMM or custodian and remitted to Principal Securities.

The annual fee Principal Securities charges under an investment adviser arrangement for each TPMM
Program is listed below.

SEI Investment Management Corporation
Principal Securities, through its investment adviser arrangement with SEI, sets its advisory fee as a
percent of the asset value of the client’s account at the end of each quarter. The advisory fee Principal
Securities collects is negotiable, but will not exceed the following fee schedule (expressed as annualized
fees):

                    SEI Investment Management Corporation Client Fee Schedule
                                    Managed Account Solutions
                    Asset Value                               Principal Securities Fee
                   $0 - $149,999                                    Up to 1.75%
                $150,000 – $249,999                                 Up to 1.75%
                $250,000 - $500,000                                 Up to 1.75%
                $500,001 - $999,999                                 Up to 1.20%
                 $1 million and up                                  Up to 1.10%

                     SEI Investment Management Corporation Client Fee Schedule
                                     Mutual Fund Model Program *
                    Asset Value                                Principal Securities Fee
                   $0 - $149,999                                     Up to 1.75%
               $150,000 – $249,999                                   Up to 1.75%
                $250,000 - $500,000                                  Up to 1.75%
                $500,001 - $999,999                                  Up to 1.20%
              $1,000,000 - $2,000,000                                Up to 1.10%
                 $2,000,001 and up                                   Up to .90%
* This program is no longer being offered for new accounts.

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The fee is collected quarterly in arrears. Fees are pro-rated based on the number of days for which
services were provided. SEI may terminate the investment advisory service it provides to Principal
Securities through the SEI programs at any time upon written notice, without penalty. Upon
termination, SEI will calculate and deduct any fees due pro-rated based upon the number of days the
client account was open during that quarter. The SEI Funds assess separate advisory fees that are
payable to the funds’ portfolio managers.

There may be minimum investment requirements in the SEI models that vary based on program. Please
refer to the applicable SEI Form ADV disclosure brochure for any minimums that may apply.

Promoter & Investment Adviser

AssetMark
Fees associated with the AssetMark TPMM Programs are payable quarterly, in advance, based on assets
under management. AssetMark pays Principal Securities a fee of up to 1.95% of the value of the
Program Account in the investment adviser arrangement. AssetMark pays a promoter fee of up to 1.50%
of the value of the Program Account in the promoter program arrangements. Principal Securities no
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Item 7 – Types of Clients

Principal Securities provides investment advice to individuals, qualified and nonqualified retirement
plans, trusts, estates, charitable organizations, and other corporations and business entities. This
includes active‑duty U.S. military personnel residing or stationed outside the United States. The
requirements for opening or maintaining accounts, such as minimum account size, are disclosed in Item
5 of this document.