Item 5: Fees and Compensation
Compensation
Private Vista bases its fees on a percentage of assets under management, fixed fees, hourly
charges, and third-party adviser/manager fees. Private Vista’s fee schedules are described
below.
Compensation – Financial Planning
Private Vista charges fixed fees ranging between $500 and $25,000 or an hourly fee of
approximately $300 for financial planning services, which shall be due and payable in advance
at the onset of the relationship. An estimate of the total cost will be determined at the start of
the financial planning engagement. In very limited circumstances, the cost/time could
potentially exceed the initial estimate. In such cases, Private Vista will notify the client and may
request that the client approve the additional fee. All initial financial planning services are
completed within 6 months.
After the first year of services, clients have the option of renewing with Private Vista for some
portion of the initial financial planning fee charged. Specific fee-paying arrangements will be
detailed in the financial planning agreement.
Private Vista or the client may terminate the financial planning agreement within five days of
the date of acceptance without penalty to the client. After the five-day period, either party,
upon written notice to the other, may terminate the financial planning agreement. In the event
of termination, the client will be charged for the portion of work performed by Private Vista
and any unearned fees will be refunded to the client.
Compensation – Asset Management Services
Private Vista shall provide the services described in the Asset Management Agreement for an
annual asset based upon the following fee schedule:
Household Assets Annual Fee
Initial $1,000,000 1.00%
Next $1,000,000 0.85%
Next $3,000,000 0.75%
Next $2,500,000 0.50%
Next $2,500,000 0.35%
All assets over $10,000,000 0.25%
The annual asset-based fee is billed on a quarterly basis, in advance, based upon the market
value of the Account(s) including cash, on the last day of the previous quarter as valued by the
Custodian. Private Vista reserves the right to adjust the fee for significant intra-quarter inflows
and/or outflows. The calculation of such fee may be adjusted up or down the following quarter
on a prorated basis to reflect significant deposits and/or withdrawals (plus or minus $500,000)
to accounts after the first after the first day of a quarter in which a fee was calculated in
advance.
Compensation – Other Investment Advice – Third Party Independent Managers
Private Vista’s fees are separate and distinct from, and in addition to, the fees charged by
recommended Independent Managers, which are described in the agreement with the
Independent Manager.
Compensation – Qualified Plan Services
For qualified plan services, Private Vista charges the following annual fees:
Assets Annual Fee
%
First $2,500,000 0.50%
Next $2,500,000 0.35%
Next $2,500,000 0.30%
Next $2,500,000 0.25%
Next $2,500,000 0.20%
Above $10,000,000 0.25%
Fees are charged quarterly in arrears.
Other Fees
Private Vista’s fees for the above services are exclusive of brokerage commissions, transaction
fees, and other related costs and expenses which shall be incurred by the client. Clients may
incur certain charges imposed by custodians, brokers, third party investment and other third
parties such as fees charged by managers, custodial fees, 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. Mutual funds and exchange traded funds also
charge internal management fees, and possibly marketing and distribution fees (known as 12b-
1 fees), which are disclosed in a fund’s prospectus.
Such charges, fees and commissions are exclusive of and in addition to Private Vista’s fee, and
Private Vista shall not receive any portion of these commissions, fees, and costs.
Advice offered by Private Vista may involve investment in mutual funds. Clients are advised that
all fees paid to Private Vista for any investment advisory services are separate and distinct from
the fees and expenses charged by mutual funds (described in each fund’s prospectus) to their
shareholders. These fees will generally include a management fee and other fund expenses.
Further, there may be transaction charges involved with purchasing or selling of securities. The
client is responsible for payment of all brokerage fees/transaction charges incurred in managing
the portfolio. Private Vista does not share in any portion of the brokerage fees/transaction
charges imposed by the custodian holding the client funds or securities. The client should
review all fees charged by mutual funds, Private Vista, and others to fully understand the total
amount of fees to be paid by the client.
Agreement Terms
A client may terminate the client agreement at any time by notifying Private Vista in writing and
paying the rate for the time spent on the engagement prior to notification of termination. If the
client made an advance payment, Private Vista will refund any unearned portion of the advance
payment.
General Information on Compensation
In certain circumstances, fees, account minimums and payment terms are negotiable
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