Item 5 Fees and Compensation
INVESTMENT SUPERVISORY SERVICES ("ISS")
INDIVIDUAL PORTFOLIO MANAGEMENT FEES
The annualized fee for Investment Supervisory Services for new clients is charged as a percentage
of assets under management, according to the following schedule:
Annual Fee
1.25% of assets under management
Portola Group follows the safeguards established under the California Code of Regulations
Section 260.237
Limited Negotiability of Advisory Fees: Although The Portola Group, Inc. has established the
aforementioned fee schedule, we retain the discretion to negotiate alternative fees on a client-by--
client basis. Client facts, circumstances and needs are considered in determining the fee schedule.
These include the complexity of the client, assets to be placed under management, anticipated
future additional assets; related accounts; portfolio style, account composition, reports, among
other factors. The specific annual fee schedule is identified in the contract between the adviser
and each client. Existing clients will retain the annual fee schedule identified in their original
contract unless otherwise notified in writing by The Portola Group, Inc.
We may group certain related client accounts for the purposes of determining the annualized fee.
Discounts, not generally available to our advisory clients, may be offered to family members and
friends of associated persons of our firm.
Fees are payable quarterly. The amount of the quarterly fee is based upon the estimated market
value of the account at the end of the prior quarter. A copy of the calculation is sent to the client.
Fees are deducted from clients’ assets approximately 1 to 4 weeks after the start of the quarter in
advance for the current quarter. PGI believes that its fees are competitive with fees charged by
other investment advisers for comparable services.
PORTFOLIO MANAGEMENT SERVICES FEES
The annualized fee for Portfolio Management Services for new clients is charged as a percentage
of assets under management, according to the following schedule:
Assets Under Management Annual Fee
1.25% of assets
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The Portola Group does not, nor do its representatives, accept compensation for the sale of
securities or other investment products, including asset based sales charges or service fees from
mutual funds.
The annualized fee for Portfolio Management Services may be charged as a fixed fee, negotiated
on a case-by-case basis. Overall factors to be considered will include the type and amount of
assets to be managed and the complexity of the client’s circumstances.
Limited Negotiability of Advisory Fees: Although The Portola Group, Inc. has established the
aforementioned fee schedule, we retain the discretion to negotiate alternative fees on a client-b -
client basis. Client facts, circumstances and needs are considered in determining the fee schedule.
These include the complexity of the client, assets to be placed under management, anticipated
future additional assets; related accounts; portfolio style, account composition, reports, among
other factors. The specific annual fee schedule is identified in the contract between the adviser
and each client and shall not exceed a rate of 3.00% annually. Existing clients will retain the
annual fee schedule identified in their original contract unless otherwise notified in writing by The
Portola Group, Inc.
We may group certain related client accounts for the purposes of determining the annualized fee.
Discounts, not generally available to our advisory clients, may be offered to family members and
friends of associated persons of our firm.
Fees are payable quarterly. The amount of the quarterly fee is based upon the estimated market
value of the account at the end of the prior quarter. A copy of the calculation is sent to the client.
Fees are deducted from clients’ assets approximately 1 to 4 weeks after the start of the quarter in
advance for the current quarter. PGI believes that its fees are competitive with fees charged by
other investment advisers for comparable services.
FINANCIAL PLANNING FEES
The Portola Group, Inc.'s on-going Financial Planning services are provided as requested as part
of the continuous investment advisory client assets under management fee. No additional fee for
financial planning is charged for existing investment advisory individual clients.
The Portola Group, Inc. also provides ongoing comprehensive wealth planning, investment
counseling, and investment, as well as data tracking services for clients under its personal CFO
services. These services include data tracking of personal/household income and expenses and
cash flow, as well as generating profit and loss reports. The services are for clients who are not
receiving continuous individual portfolio investment management services. The annualized fee
for Portfolio Management Services may be charged as a fixed fee, negotiated on a case-by-case
basis. Overall factors to be considered will include the type and amount of assets to be monitored
and the complexity of the client’s circumstances. Clients may select either to receive an invoice
for fees or have them deducted directly from their assets. Fees for personal CFO services are
established as annual retainer fees, which are paid on a quarterly basis in advance. They may
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range from $5,000 to $100,000 annually, but could be higher if the scope of the work warrants.
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