Item 5 Fees and Compensation
Portfolio Management Services.
RPG's fee for portfolio management services is based on a percentage of a client's managed
assets and is set forth in the following annual fee schedule:
Annual Fee Schedule.
Initial $30 Million 0.75%
Balance over $30 Million 0.50%
Balance over $150 Million Negotiable
The annual portfolio management fee, also known as the annual advisory fee, is invoiced
quarterly in arrears based on the month end values for the quarter, pro-rating for partial
quarters with payment expected within 30 days.
For options strategies, assets under management (AUM) is calculated on a daily basis
and is determined by ticker, calculated as the dollar value of the underlying assets being
hedged in each options mandate. RPG may rely on third party providers to determine
and/or confirm AUM.
If the portfolio management agreement is executed at any time other than the first day of a
calendar quarter, the Advisor's fees will apply on a pro rata basis, which means that the advisory
fee is payable in proportion to the number of days in the quarter for which services are rendered.
RPG’s annual advisory fee is negotiable, at its discretion. It shall be mutually agreed between
RPG and the client based upon multiple factors, including the client’s unique circumstances and
the complexity of the relationship.
At its discretion, RPG may combine the account values of family members living in the same
household to determine the applicable advisory fee. For example, RPG may combine account
values for a client and a client’s family members and other types of related accounts. Combining
account values may increase the asset total, which may result in the client paying a reduced
advisory fee based on the available breakpoints in RPG’s fee schedule.
RPG will send each client an invoice for the payment of the advisory fee or will deduct its fee
directly from client accounts through the qualified custodian holding the client's funds and
securities. RPG will deduct our advisory fee only when the client has given RPS written
authorization permitting the fees to be paid directly from the client account.
RPG encourages clients to reconcile all invoices with the statement(s) they receive from the
qualified custodian. Should a client find any inconsistent information between RPG’s invoice and
the statement(s) received from the qualified custodian, RPG advises the client to immediately call
RPG at the main telephone number located on the cover page of this brochure.
A client may terminate the portfolio management agreement upon written notice. The client will
incur a pro rata charge for services rendered prior to the termination of the portfolio management
agreement, which means he/she will incur advisory fees only in proportion to the number of days
in the quarter for which he/she is a client.
Accrued Interest/Dividends.
The market value reflected on periodic account statements issued by the account custodian may
differ from the value used by RPG for its advisory fee billing process. RPG includes the accrued
value of certain month or quarter-end interest and/or dividend payments when calculating client
advisory fees, which amounts may not yet be reflected on the custodian statement as having
been received by the account.
Fee Dispersion.
RPG, in its discretion, may charge a lesser or higher investment advisory fee, charge a flat fee,
waive appliable minimum asset or minimum fee levels, waive its fee entirely, or charge fee on a
different interval, based upon certain criteria (i.e., anticipated future earning capacity, anticipated
future additional assets, dollar amount of assets to be managed, related accounts, account
composition, complexity of the engagement, anticipated services to be rendered, grandfathered
fee schedules, employees and family members, courtesy accounts, competition, negotiations with
client, etc.). Please Note: As result of the above, similarly situated clients could pay different fees.
In addition, similar advisory services may be available from other investment advisers for similar
or lower fees. ANY QUESTIONS: RPG’s Chief Compliance Officer, Kevin Lutz, remains available
to address any questions that a client or prospective client may have regarding advisory fees.
Financial Consulting Services.
We charge a fixed fee for financial consulting services. Fixed fees are negotiated between RPG
and the applicable client and typically range from $2,400 to $500,000 but vary based on scope
and complexity of engagement. We typically bill for these quarterly in arrears unless otherwise
stated in the financial consulting services contract.
Clients may terminate the financial consulting agreement with written notice to RPG. If a client
has pre-paid financial consulting fees that RPG has not yet earned, RPG will refund those
prorated fees.
Selection of Other Advisers.
Our recommendations to use third party money managers are included in our portfolio
management fee. RPG does not charge you a separate fee for the selection of other advisers nor
will we share in the advisory fee clients pay directly to the TPMM. Advisory fees that you pay to
the TPMM are established and payable in accordance with the Form ADV Part 2 or other
equivalent disclosure document provided by each TPMM to whom you are referred. These fees
may or may not be negotiable. You should review the recommended TPMM's brochure for
information on its fees and services.
You may be required to sign an agreement directly with the recommended TPMM(s). You may
terminate your advisory relationship with the TPMM according to the terms of your agreement
with the TPMM. You should review each TPMM's brochure for specific information on how you
may terminate your advisory relationship with the TPMM and how you may receive a refund, if
...