Item 5: Fees and Compensation
A. Fee Schedule
Portfolio Management Fees
Total Assets Under Management Annual Fees
$1,000,000 - $250,000,000 2.00%
SAL uses the value of the account as of the last business day of the billing period, after
considering deposits and withdrawals, for the purpose of determining the market value
of the assets upon which the advisory fee is based.
These fees are generally negotiable, and the final fee schedule will be memorialized in the
client’s advisory agreement. Clients may terminate the agreement without penalty for a
full refund of SAL's fees within five business days of signing the Investment Advisory
Contract. Thereafter, clients may terminate the Investment Advisory Contract generally
with 30 days' prior written notice.
Performance-Based Fees for Portfolio Management
Qualified clients will pay an annual fee of 2.00% of assets under management along with
a 20.00% performance fee based on capital appreciation. If the client's portfolio rises in
value, the client will pay 20.00% on that increase in value, but if the portfolio drops in
value, the client will not incur a new performance fee until the portfolio reaches the last
highest value, adjusted for withdrawals and deposits, which is generally known as a “high
water mark.” The high-water mark will be the highest value of the client’s account on the
last day of any previous quarter, after accounting for the client’s deposits or withdrawals
for each billing period.
These fees are generally negotiable, and the final fee schedule will be memorialized in the
client’s advisory agreement. This service may be canceled with 30 days’ notice. Clients
must pay the prorated performance-based fees for the billing period in which they
terminate the Investment Advisory Contract up to and including the day of termination.
B. Payment of Fees
Payment of Portfolio Management Fees
Asset-based portfolio management fees will be invoiced and billed directly to the client,
payable by check or bank transfer, on a quarterly basis. Fees are paid in arrears.
Payment of Performance-Based Portfolio Management Fees
Performance-based portfolio management fees may be invoiced and billed directly to the
client on a quarterly basis. Fees are paid in arrears.
C. Client Responsibility For Third Party Fees
Clients are responsible for the payment of all third-party fees (i.e., custodian fees,
brokerage fees, mutual fund fees, transaction fees, etc.). Those fees are separate and
distinct from the fees and expenses charged by SAL. Please see Item 12 of this brochure
regarding broker-dealer/custodian.
D. Prepayment of Fees
SAL collects its fees in arrears. It does not collect fees in advance.
E. Outside Compensation For the Sale of Securities to Clients
Neither SAL nor its supervised persons accept any compensation for the sale of
investment products, including asset-based sales charges or service fees from the sale of
mutual funds.