Compensation

Most of my compensation comes from fees collected for managing and reporting on client portfolios. That makes me a fee-based investment advisor.

Here’s my annual fee schedule:

First $250,000………………………………….1.45%
Next $250,000………………………………….1.30%
Next $500,000………………………………….1.10%
Next $1,000,000………………………………..0.80%
Next $2,000,000………………………………..0.50%

Management and reporting fees must be paid quarterly and in advance. The fee is based on the average daily balance of the account for the preceding calendar quarter.

Example: If an account has an average daily balance of $100,000 for the calendar quarter of July through September, the fee is 1.45% divided by 4 (1/4 the annual fee) or .3625% times $100,000 which equals $362.50.  This fee is for portfolio management and other investment advice for the coming quarter, October through December.

New accounts are charged the quarterly fee for the entire initial investment. For example, if you bring $100,000 to invest on November 1st,  you’d pay $362.50 for the quarter.

No-Commission Policy. I receive no commissions or service fees for the sale of securities. All of my investments are sold at “Net Asset Value”, that is with no “sales load”.

Example: If you purchased $100,000 of the Smiley Fund “A” shares (which carries a 5.25% sales load) from a Registered Representative or stock broker, you may find that your account value on the first day was not $100,000 but rather $100,000 – $5,250 or $94,750.00. Some or most of this sales load is to compensate the stock broker or registered representative as a commission on the sale.

The same Smiley Fund “A” shares purchased from a fee-based registered investment advisor would be credited on the first day at $100,000. Your account would be subject to quarterly advisory fees.

Want a refund? If we end our business relationship, you’ll receive a refund within 45 days. The refund amount is calculated by dividing the quarterly fee by the number of days in the quarter (average daily fee) then multiplied by the number of days remaining in the quarter.