ITEM 5 FEES AND COMPENSATION
A. ADVISORY FEES
EPG earns its fees by providing advisory services including portfolio management.
1. Investment Supervisory Services Fees
EPG requires a written Investment Management Agreement (“the Agreement”) to be
signed by the client prior to engagement of services. The Agreement outlines the
services rendered by EPG and the fees clients will be charged. The Agreement gives
EPG written authority to deduct fees from custodial accounts according to the schedule
below:
FEE SCHEDULE
ASSETS UNDER MANAGEMENT QUARTERLY FEE PERCENTAGE
$0 to $500,000 .25%
$500,001 to $1,000,000 .225%
$1,000,001 and higher .20%
The quarterly fee is charged at the beginning of each quarter and computed as a
percentage of the total value of the assets under management (based upon formal
valuation) on the last day of the preceding quarter.
The investment supervisory service fees are the only fees charged by EPG for investment
management services. These fees do NOT include fees or other charges due to the
broker-dealer/custodian, portfolio software, any third-party investment manager,
exchange traded funds or mutual funds. The fees charged by broker-dealer/custodians
are outlined in their separate client agreements. The fees charged by independent third-
party investment managers are outlined in their advisory agreement or their statement of
investment selection. Mutual fund fees and expenses are described in each fund’s
prospectus. Mutual fund charges will generally include a management fee, other fund
expenses and a possible distribution fee. If a mutual fund also imposes sales charges, a
client may pay an initial or deferred sales charge. Clients could invest in a mutual fund
directly, without the services of EPG. In that case, the client would not receive the
services provided by EPG in determining whether the mutual fund is the most appropriate
to each client’s financial condition and objectives. Accordingly, the client should review
both the fees charged by all parties to the client’s individual program to fully understand
the total amount of fees to be paid and to thereby evaluate the advisory services being
provided.
Fees are generally due quarterly, in advance. EPG sends each client a consolidated
summary of the fees for all parties employed in implementing the investment strategy for
each client (broker-dealer / custodians, third-party investment managers, etc., in addition
to EPG fees) due for the upcoming quarter and that will be pulled from the client’s
accounts in bulk with the quarterly performance reports. If a client selects a custodian
where fees are collected on a different schedule from that outlined in the Investment
Management Agreement (“the Agreement”), the effective annual fee rate shall be the
same as that outlined in the Agreement.
EPG’s fees are negotiable. EPG reserves the right to waive or reduce management fees.
2. Financial Consulting, Financial Planning, and Informational Seminars
EPG does not charge for financial consulting or planning services. EPG charges up to
$70 per person or $90 per couple for financial planning classes held on college campuses.
These fees represent approximately .00001% of EPG’s advisory billing each year.
B. BILLING PROCEDURES
1. Investment Supervisory Services
EPG’s advisory fees for portfolio management accounts are payable quarterly in advance.
The fee assessment is based upon the market value of a client’s assets on the last day
of the previous quarter and billed the first month of the quarter. As outlined in the terms
of EPG’s Investment Management Agreement, EPG’s fees are deducted directly from the
client’s account(s) pursuant to the client’s written authorization. EPG sends the custodian
written notice of the total of all fees including third-party investment managers and the
broker-dealer as well as EPG fees to be deducted from client’s account. The custodian
implements the direct withdrawal of fees from the client account. EPG pays the broker-
dealer and third-party manager from fees collected.
These fees do not include any fees and expenses charged by mutual funds or exchange-
traded funds. EPG advises clients whether such products are appropriate for the client
through individual consultations with clients, for which no fee is charged.
The account custodian sends statements to clients at least quarterly that show all
disbursements from client accounts.
C. OTHER FEES & EXPENSES
There may be additional costs associated with portfolio management. Clients may incur
no-load, 12b-1 distribution fees, or certain deferred sales charges on mutual funds and
expense ratios charged on exchange-traded funds. Accounts can also incur certain
charges imposed by other third parties in connection with investments made through the
account, including, but not limited to, annual maintenance fees.
EPG offers its clients sophisticated performance reporting and portfolio analysis tools as
well as electronic data vaults, at no cost to its clients.
D. REFUND POLICY
An Investment Management Agreement may be terminated without penalty if terminated
by the client within five (5) business days of signing. After five (5) business days, an
Investment Management Agreement may be canceled at any time, by either party, for
any reason upon not less than 30 days prior written notice. With 30 days written notice,
fees will be refunded on a prorated basis.
E. OTHER COMPENSATION
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