ITEM 5: FEES AND COMPENSATION
Investment Management Fee Schedule
Our fees vary depending upon the market value of your assets under management and the
portfolio you select. Our standard fee schedule is as follows:
ANNUAL FEE
Tactical Tactical Tactical Tactical Tactical
Asset Level Income Conservative Moderate Growth Equity
$100,000 - $1,999,999 0.35% 0.50% 0.75% 0.75% 0.60%
$2,000,000 - $4,999,999 0.35% 0.45% 0.70% 0.70% 0.60%
$5,000,000 - $9,999,999 0.35% 0.45% 0.65% 0.65% 0.60%
$10,000,000 - $24,999,999 0.35% 0.35% 0.50% 0.50% 0.60%
$25,000,000 - $49,999,999 0.35% 0.30% 0.45% 0.45% 0.60%
$50,000,000 - $99,999,999 0.35% 0.25% 0.40% 0.40% 0.60%
$100,000,000 and over 0.35% Negotiable Negotiable Negotiable 0.60%
Unless we agree in writing to handle it differently, we bill our fee quarterly in advance.
The fee is based on the total assets in your account. Once your assets reach the higher asset
bracket, the entire account is charged the fee associated with that bracket. We may agree to
aggregate your related accounts for purposes of calculating the asset level and fee. If you enter
into an agreement directly with us, then the specific manner in which we charge fees is described
in our investment advisory agreement with you. We may negotiate our fee under certain
circumstances and negotiated fees may be higher or lower than those described above. As noted
Part 2A of Form ADV – Brochure 6 Tactical Allocation Group, LLC
above in “Traditional Sub-advisory Services” beginning on page 5, if we provide traditional sub-
advisory services to you, we will negotiate our fee with your Financial Advisor and not directly
with you.
Our initial fee will be calculated and deducted at the inception of your account and is
prorated based upon the days remaining in the initial quarter. Generally, your fee for all
subsequent quarters will be deducted within the first five business days following the close of
each calendar quarter. Our fee will be calculated as of the end of each calendar quarter using the
ending balance of assets in your account as reported by your custodian or as reconciled within
our portfolio accounting software. We do not make adjustments or refunds for additions or
partial withdrawals during any quarter.
Unless you participate in a wrap fee program, our fees are exclusive of brokerage
commissions, transaction fees, and other related costs and expenses which will be incurred by the
client. You may incur certain charges imposed by custodians, brokers, third party investment
managers. Exchange-traded products also charge internal management fees, which are disclosed
in their prospectus. We do not receive any portion of these commissions, fees and costs.
For qualified plans, we will disclose to the plan fiduciary all revenue arrangements and
any other monetary benefits provided to us or our employees related to the qualified plan.
Termination of Services
Either of us may terminate our investment advisory agreement by providing the other
party with written notice. You have the right to terminate the agreement without penalty within
five business days after signing the agreement. If the agreement terminates prior to the end of a
billing period, we will refund advisory fees to you prorated from the date of termination to the
end of quarter. If the agreement is terminated, you will still be liable for any transactions initiated
by us in your account under the agreement prior to the termination date, such as the purchase of
investments. If you request, we will initiate redemption instructions upon receipt of your written
termination notice. Proceeds will be available for payment to you upon settlement of all
transactions in the account. It may not be necessary to liquidate all securities positions when
terminating our agreement and you should ask us about that at the time of termination.
You are responsible for any cost incurred in transferring assets from the account to a
different account. If you terminate your relationship with your Financial Advisor, that may not
terminate your agreement with us.
Other Fees and Charges
If we provide you with advisory services through your Financial Advisor, you are paying two
advisory fees: you pay one fee to us and one fee to your Financial Advisor. In general, if you
qualify to use our advisory services without a financial advisor, as described in “ITEM 7:
TYPES OF CLIENTS” beginning on page 8, you may pay a lower fee.
Part 2A of Form ADV – Brochure 7 Tactical Allocation Group, LLC
ETPs typically charge their shareholders various transactions and operating expense costs
associated with the establishment and operation of the funds. These fees will generally include a
management fee, shareholder servicing, other fund expenses, and sometimes a distribution fee. If
the fund also imposes sales charges, you may pay an initial or deferred sales charge. However,
because of differences in distribution and often lower transaction costs, total operating expense
ratios for ETPs often have been historically less than those for corresponding mutual funds.
These separate fees and expenses are disclosed in each fund’s current prospectus, which is
available from the fund or we can provide it to you upon your request.
Consequently, for any type of fund investment, it is important for you to understand that
you are directly and indirectly paying two levels of advisory fees and expenses: you pay one
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