PFS Investments Inc. (“PFSI”) expects to receive a mutual fund support fee, or what has come to be called a revenue sharing payment, from each of the fund families in our Select Group and from Fidelity Investments. Revenue sharing payments are paid out of the investment adviser’s or other fund affiliate’s assets and not from the fund’s assets. The assets of the investment adviser or other fund affiliate, however, may be in part derived from services provided to the fund and paid for out of the fund's assets. It is important to note that neither our representatives, nor their supervisors, receive any additional compensation as a result of these payments.
Expected 2016 Revenue Sharing
2015 Revenue Sharing
Generally, for 2016 we expect the revenue sharing arrangements resulting in the largest payments to PFSI to consist of: (i) a one-time payment of up to .25 percent (25 basis points) of an investor’s purchase amount, and (ii) a quarterly payment of up to .0175 percent (1.75 basis points) for as long as the fund family retains the investor’s assets. On an investment of $10,000 (none of which is invested in the money market fund discussed below), the maximum revenue sharing payment PFSI would receive would be a one-time payment of $25, and $1.75 for each quarter that the fund retains the assets. These revenue sharing arrangements vary and some fund-family affiliates will pay less. Separately, PFSI may receive additional revenue sharing on investments in the following Legg Mason funds: Western Asset Liquid Reserves and Western Asset Tax-Free Reserves. Though the revenue sharing arrangements with these funds vary, the maximum revenue sharing payment PFSI could receive is .04375 percent (4.375 basis points) per quarter. Accordingly on an investment of $10,000, PFSI could receive a maximum payment of $4.375 for each quarter that the fund retains the assets. PFSI may receive less depending on which fund holds the assets and other factors determined by the investment advisor to the fund. All revenue sharing arrangements are subject to change at any time. For more information, please refer to a fund’s description of its revenue sharing practices, usually included in its prospectus or Statement of Additional Information.
Following are the fund families from which PFSI received revenue sharing payments in 2015, arranged in order of the amount of revenue sharing paid to PFSI in 2015: Legg Mason Funds, Invesco, Franklin Templeton Investments, Pioneer Investments, American Funds, Fidelity Advisor Funds, and American Century Funds.
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