Item 5 – Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for investment management.
Each Client shall sign an agreement that details the responsibilities of the Advisor and the Client.
A. Fees for Advisory Services
Investment Management Services
Investment advisory fees are paid quarterly, in advance of each calendar quarter, pursuant to the terms of the
investment advisory agreement. Investment advisory fees are based on the market value of assets under
management at the end of the previous calendar quarter. Investment advisory fees range from 0.50% to 1.50%
depending on the size and complexity of the Client relationship. Relationships with multiple objectives, specific
reporting requirements, portfolio restrictions and other complexities may be charged a higher fee.
The investment advisory fee in the first quarter of service is prorated to the inception date of the account[s] to the
end of the first quarter. Fees may be negotiable at the sole discretion of the Advisor. The Client’s fees will take into
consideration the aggregate assets under management with the Advisor. All securities held in accounts managed
by the Advisor will be independently valued by the Custodian. The Advisor will not have the authority or
responsibility to value portfolio securities.
SCR Ultra Investment Fund
Clients should refer to the offering documents for a detailed fee schedule. Generally, investors in the SCR Fund
pay a 0.30% per annum fee for investment management services. Clients should note that the fee may not be
charged to the General Partner, investment manager, and affiliates and may be waived at the discretion of the
General Partner.
In addition, Clients pay an administrative fee each month, in arrears, equally to 0.50% per annum. The
administrator compensates the General Partners for managing the SCR Fund, overseeing the investment
manager, paying the SCR Fund’s administrator and generally meeting the obligations under the limited
partnership agreement.
The General Partner may also receive an incentive share from the SCR Fund. This incentive share is paid
monthly and equals 20% of the difference between the performance returns of the SCR Fund for the month and
the performance returns of the S&P 500 Total Return Index for the same period. This fee is also contingent upon
the net asset value of the SCR Fund as of the current month being higher than the net asset value of the SCR
Fund as of the month end three months prior to the current month end.
B. Fee Billing
Investment Management Services
Investment advisory fees will be calculated by the Advisor and deducted from the Client account[s] at the
Custodian. The Advisor shall send an invoice to the Custodian indicating the amount of the fees to be deducted
from the Client’s account[s] at the respective quarter-end date. The amount due is calculated by applying the
quarterly rate (annual rate divided by 4) to the total assets under management with the Advisor at the end of each
quarter. Clients will be provided with a statement, at least quarterly, from the Custodian reflecting deduction of the
investment advisory fee. In addition, the Advisor may, upon request from the Client, provide a report itemizing the
fee, including the calculation period covered by the fee, the account value and the methodology used to calculate
the fee. It is the responsibility of the Client to verify the accuracy of these fees as listed on the Custodian’s
brokerage statement as the Custodian does not assume this responsibility. Clients provide written authorization
CT Financial Advisors, LLC
Mendenhall Station
330 Kennett Pike, Suite 209, Chadds Ford, PA 19317-8211
Page 6 Phone: (610) 388-6246 Fax: (484) 775-1385
www.captrustfa.com
permitting advisory fees to be deducted by the Advisor directly from their accounts held by the Custodian as part of
the investment advisory agreement and separate account forms provided by the Custodian.
SCR Ultra Investment Fund
Clients should refer to the offering documents for a detailed fee schedule.
C. Other Fees and Expenses
Clients may incur certain fees or charges imposed by third parties, other than the Advisor, in connection with
investment made on behalf of the Client’s account[s]. The Client is responsible for all custody and securities
execution fees charged by the Custodian. The investment advisory fee charged by the Advisor is separate and
distinct from these custody and execution fees. In some instances, the Advisor may rebate ticket charges back to
Clients. In these instances, the Client will pay the ticket charges and will be rebated at the end of the quarter prior to
the Advisor withdrawing the period’s management fee.
In addition, all fees paid to the Advisor for investment advisory services are separate and distinct from the
expenses charged by mutual funds and ETFs to their shareholders, if applicable. These fees and expenses are
described in each fund’s prospectus. These fees and expenses will generally be used to pay management fees for
the funds, other fund expenses, account administration (e.g., custody, brokerage and account reporting), and a
possible distribution fee. A Client may be able to invest in these products directly, without the services of the
Advisor, but would not receive the services provided by the Advisor which are designed, among other things, to
assist the Client in determining which products or services are most appropriate to each Client’s financial situation
and objectives. Accordingly, the Client should review both the fees charged by the fund[s] and the fees charged by
the Advisor to fully understand the total fees to be paid.
D. Advance Payment of Fees and Termination
Investment Management Services
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