The ManagedPlan Program involves the investment of Plan
assets in no-load and load-waived mutual funds (“Funds”).
Accordingly, there are no sales charges or commissions
payable to PCS on purchases or sales of Funds or on exchanges
among Funds. The fees charged by the ManagedPlan
Program are separate and distinct from the underlying fees
and expenses that are charged by the Funds to their shareholders.
These fees and expenses, which generally include a management
fee and other Fund expenses, are reflected in the net asset
value of a Fund’s shares and are described in each Fund’s
prospectus.
Rule 12b-1 fees and Other Administrative Payments
In addition, certain Funds pay Rule 12b-1 fees to third
parties for distribution-related services (“12b-1 Fees”)
and/or sub-transfer agency, sub-accounting, omnibus servicing
or other administrative fees to third parties for administrative
services (“Administrative Fees” and. together with 12b-1
Fees, “Fund Fees”). Such Fund Fees are reflected in the
net asset value of a Fund’s shares and therefore represent
a fee incurred by Plan participants investing in that Fund.
Offset or Reimbursement of Mutual Fund Fees
In order to appropriately credit the accounts of Plan participants
invested in Funds that pay Fund Fees and Funds whose affiliates
pay Revenue Sharing Payments, Professional Capital
Services, LLC (“PCS”) offsets any Fund Fees and Revenue
Sharing Payments received by it on a dollar-for-dollar basis
against the fee applicable to the Plan assets invested in
such Fund. For example, if the aggregate Fund Fees and Revenue
Sharing Payments paid to PCS during the second calendar
quarter ending June 30th equals 0.05% (or 5 basis points)
then the Plan's fee payable for the third calendar quarter
ending September 30th attributable to assets invested in
such Fund shall be reduced by 0.05% (or 5 basis points).
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