Davidson Investment Advisors Inc

Item 5 Fees and Compensation
DESCRIPTION

A client’s investment management agreement will set forth the actual compensation the client will pay to
Davidson Investment Advisors. A client pays the Firm an asset-based fee, which is an ongoing fee based on the
market value of the assets in the account (including cash and cash equivalents) on the last day of the preceding
quarter. Davidson Investment Advisors does not have one standard annual fee schedule that is applicable
across all strategies but has a fee schedule per strategy and account type. Advisory fees are negotiable. If an
account is governed by a sub-advisory or wrap program agreement, the Firm’s fees, along with the fees of the
program sponsor, and all corresponding rules are the sole responsibility of the program sponsor and are
governed by the client agreement with the program sponsor. Below are typical strategy-specific fee schedules
applicable to separately managed accounts for which Davidson has trading discretion:

Equity Income Strategy:

        Value of assets          Annual Fee
        0 - $10m                 0.50%
        Above $10m               negotiable

Multi-Cap Equity Strategy:
        Value of assets          Annual Fee
        0 - $10m                 0.65%
        Above $10m               negotiable

Intermediate Taxable Fixed Income Strategy:
        Value of assets          Annual Fee
        0 - $10m                 0.35%
        Above $10m               negotiable

Intermediate Municipal Fixed Income Strategy:

        Value of assets          Annual Fee
        0 - $10m                 0.25%
        Above $10m               negotiable

Note: There are exceptions to the above fee construct for a limited number of clients based on legacy relationships
and/or supervisory approval.

The typical fee schedule for model provider services to other investment advisers or broker-dealers is 0.30% of
the market value of assets invested using Davidson Investment Advisors’ models.
ADDITIONAL FEE INFORMATION

How Fees are charged. Fees are generally charged quarterly, in advance, payable on the first day of each
calendar quarter. This quarterly fee is calculated based on the market value of assets in the account (including
cash and cash-equivalents) on the last business day of the prior quarter. The value of assets held in the client’s
account will be determined in good faith by the Firm to reflect their fair market value. Depending on the terms
of an investment management agreement governed by a sub-advisory or wrap program sponsor, some clients
may be charged in arrears and/or monthly. The initial billing period begins when an investment management
agreement is signed by the client and accepted by Davidson. If this occurs after the start of a monthly or
quarterly billing period, the initial or partial quarter fee will be prorated based on the number of days
remaining in the billing period. Clients may choose to have fees deducted directly from their account or be
invoiced quarterly.
Services Covered by the Advisory Fees. The fee includes Davidson's investment management and other
administrative services.

Service Fees and Expenses NOT Covered by the Advisory Fees. In addition to the advisory fees described
above, a client may incur other fees and expenses related to the management and servicing of their account.
These other fees and expenses include commissions for account transactions, exchange fees, electronic fund
and wire transfer fees, margin interest, transfer taxes, redemption fees imposed by a mutual fund company in
relation to trading deemed to be excessive, certain fees in connection with the establishment, administration,
or termination of retirement or profit-sharing plans or trust accounting, or other costs or fees imposed under
applicable laws or regulations. In addition, in connection with the purchase of certain types of securities (such
as securities traded over the counter and fixed income securities), the client will bear the cost of any mark-ups,
mark-downs and spreads charged by market-makers and dealers.

Investment Fees and Expenses NOT Covered by the Advisory Fees. All advisory fees paid to the Firm for
investment advisory services provided are in addition to the fees and expenses clients incur with respect to
investments held in the accounts, including for assets invested in bank deposit accounts, money market funds,
mutual funds, ETFs, and other pooled investments. These fees and expenses are described in each fund's (or

other vehicle’s) prospectus or offering document and will be borne directly or indirectly by their shareholders.
These fees can include fund management fees, administrative fees, omnibus and sub-transfer agent fees, other
fund expenses, and potentially a 12b-1 Fee or other marketing, shareholder servicing and distribution charges.
By investing in these types of securities, a client is essentially paying multiple layers of fees and expenses on
the assets invested.
When investing in mutual funds, including money market funds, a 12b-1 fee may be assessed, depending on
the fund selected. 12b-1 fees are sales charges that are incorporated into the expense ratio of the fund. As a
matter of the Firm’s policy, any new purchases of mutual funds must be in an advisory share class that does not
impose a 12b-1 Fee, where such a share class is available. Davidson Investment Advisors does not guarantee
clients will always be invested in the most favorable share class offered by a mutual fund company or that
more favorable share classes will be made available in advisory accounts. In no case does Davidson Investment
Advisors receive compensation from mutual fund companies in which client assets are invested. For client
accounts custodied at D.A. Davidson or DADTS, in the event the Firm receives a 12b-1 Fee in relation to an
existing mutual fund position in an advisory account, the Firm will pass on and rebate the fee to the client. For
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Item 7 Types of Clients
Davidson Investment Advisors offers its services to all types of current or prospective clients, including, but not
limited to: individuals; banks or thrift institutions; ERISA and non-ERISA retirement plans; trusts; estates;
charitable organizations; corporations or other business entities; and registered investment companies.

Minimum Account Requirements. A minimum of $100,000 of assets under management is generally required
to participate in the Firm’s equity strategies. A minimum of $250,000 of assets under management is generally
required to participate in the Firm’s fixed income strategies. A minimum of $50,000 of assets is required to
participate in the Discretionary Program’s multi-asset portfolio solutions. These account minimums may be
higher or lower under certain circumstances and depending on the portfolio selected as well as program
sponsor.