Item 5 Fees and Compensation
Portfolio Management Services
Our annual fee for portfolio management services varies on the advisor and depending upon the
market value of your assets under our management, the type and complexity of the asset management
services provided, as well as the level of administration requested either directly or assumed by the
client. Assets in each of your account(s) are included in the fee assessment unless specifically
identified in writing for exclusion. Each of our representatives negotiates fees directly with you. Such fees are
dependent on various factors, including but not limited to, the account/household size,
the specific type of service that you engage us for, the securities utilized, and the investment strategy employed. You
will be charged a certain percentage of assets under management but, in no event will
our fees exceed 3.00% on an annualized basis. We charge our fee quarterly in advance based on the value of the
account on the last day of the quarter. We do not charge a fee in excess of $1,200 six months or more in advance.
If the portfolio management agreement is executed at any time other than the first day of a calendar quarter, our 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 you are a client. At our discretion, we may combine the account values of family members
living in the same household to determine the applicable advisory fee. For example, we may combine account values
for you and your minor children, joint accounts with your spouse, and other types of related accounts.
We will deduct our fee directly from your account through the qualified custodian holding your funds
and securities. We will deduct our advisory fee only when you have given our firm written authorization
permitting the fees to be paid directly from your account. Further, the qualified custodian will deliver an
account statement to you at least quarterly. These account statements will show all disbursements
from your account. You should review all statements for accuracy.
You may terminate the portfolio management agreement upon 30 days written notice. You will incur a
pro rata charge for services rendered prior to the termination of the portfolio management agreement,
which means you will incur advisory fees only in proportion to the number of days in the quarter for
which you are a client. If you have pre-paid advisory fees that we have not yet earned, you will receive
a prorated refund of those fees.
As disclosed in Item 4 above, certain programs offered by The Karim Group, LLC are considered to be Wrap Fee
Programs in that there are no commissions or transaction charges. The advisory fee paid by the client includes
custody, trades, management expertise and reporting in a bundled format. Please see the respective The Karim
Group Wrap Fee Program Brochure for more information on the fees you will pay.
The advisory fees for Wrap Fee Accounts are as follows:
*Fees may be negotiable
Aggregate Account Value Annualized Fee
First $500,000 2.25%
Next $500,000 1.75%
Next $4,000,000 1.25%
Amounts over $5,000,000 1.00%
The annual asset-based fee is paid quarterly in advance. When an account is opened, the asset-based fee is billed for
the remainder of the current billing period and is based on the initial contribution. Thereafter, the quarterly asset-
based fee is paid in advance, is based on the account asset value on the last business day of the previous calendar
quarter, and becomes due the following business day. Client authorizes and directs Charles Schwab as Custodian to
deduct asset-based fees from the Client's account; Client further authorizes and directs the Custodian to send a
quarterly statement to the Client which shows all amounts disbursed from Client's account, including fees paid to
our firm. Client understands that the brokerage statement will show the amount of the asset-based fee.
Additionally, there is a nominal Processing Fee for the execution of each trade which varies by trade volume and
total assets held under management with Charles Schwab.
*The processing fee for certain Open-End Mutual Funds may be waived or discounted based on arrangements made
by Charles Schab with the fund company in consideration for the reimbursement of administrative, marketing and/or
support fees. Please note that funds may change their fee arrangements with Charles Schwab at any time. For a
specific list of processing fees please contact your financial consultant.
The Client Agreement may be terminated by the Client or our firm at any time upon providing notice pursuant to the
provisions of the Client Agreement. In the event of termination of this Agreement, Registrant will refund to the
Client the prorated portion of the fee for the quarter of termination.
Billing on Cash Balances
Advisory fees are generally assessed on cash sweep balances ("cash") held in Wrap Fee accounts, provided the cash
balance does not exceed 20% of the total Account Value at the time of billing. If the cash balance is greater than
20% of the Account Value as of the last business day of the quarter (the "valuation date"), we will bill on the full
cash balance provided cash did not comprise greater than 20% of the billable Account Value for three consecutive
quarterly valuation dates. If the cash balance exceeded 20% of the billable Account Value for three consecutive
quarterly valuation dates, the amount in excess of 20% is excluded from billing.
This fee billing provision (or Cash Rule) is intended to equitably assess advisory fees to your assets for which an
ongoing advisory service is being provided, and the exclusion of excess cash from the advisory fee is intended to
benefit your holding substantial cash balances (as a percentage of the total individual account value) for an extended
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