Item 5 – Fees and Compensation
Fees are negotiable and may vary, but generally will be based on an annual percentage rate
of one percent (1%) of assets under management. Fees are payable quarterly at the
beginning of each calendar quarter based on the market value of the assets under
management at the close of the prior quarter. Fees on additions or withdrawals are pro-
rated. A client may terminate an investment advisory agreement on five (5) business days
advance written notice. On termination, clients may receive a refund of advisory fees on a
pro-rated basis. Registrant prefers to have management fees deducted from client
accounts. There are some legacy clients of Registrant that are invoiced and pay separately.
Registrant believes that its fees are competitive with fees charged by other investment
advisers for comparable services, but comparable services may be available from other
sources for lower fees than those charged by Registrant.
Registrant’s fees for investment advisory services are separate and distinct from the fees
and expenses charged by mutual funds and exchange-traded funds (“ETFs”) to
shareholders. Clients invested in mutual funds or ETFs will pay advisory fees to Registrant
and will pay additional advisory, brokerage, custodial and administrative fees as a
shareholder of the applicable mutual fund or ETF. These mutual fund or ETF fees and
San Francisco Sentry Investment Group, Inc. Form ADV, Part 2A – Brochure
expenses are described in each fund’s prospectus. Registrant’s fees are also separate and
distinct from custodial, accounting, legal and other fees incurred by clients.
Mr. Dirickson is a principal, director and officer of Registrant and is also a majority
shareholder, director and officer of S.F. Sentry Securities, Inc., a registered broker-dealer.
Sola Awofala and Charles “Bruce” Woodward provide advisory services for Registrant and
are also registered representatives of S.F. Sentry Securities, Inc. Registrant directs most of
its advisory clients’ brokerage commissions to S.F. Sentry Securities, Inc. Messrs. Dirickson,
Awofala, and Woodward will receive a portion of brokerage commissions paid in
connection with those transactions. These brokerage fees paid by the advisory client are in
addition to Registrant’s advisory fees.
This arrangement creates a conflict of interest in that Registrant, Messrs. Dirickson,
Awofala, and Woodward have an incentive to direct more client transactions to S.F. Sentry
Securities, Inc. than Registrant might otherwise direct. S.F. Sentry Securities, Inc. has
indicated to Registrant that the brokerage fees paid by Registrant’s clients will not exceed
the fees paid by similar clients of S.F. Sentry Securities, Inc. In all cases in which
transactions are directed to S.F. Sentry Securities, Inc., or to any other broker, Registrant
will determine in good faith that the commissions charged in connection with those
transactions are reasonable in relation to the value of the brokerage, research and other
services provided by that broker, viewed in terms of either the specific transaction or
Registrant’s overall responsibilities to the portfolios over which Registrant exercises
investment authority. Registrant will regularly review the commission rates paid by its
advisory clients to determine that they are competitive with commissions paid by clients of
investment advisors that provide services similar to Registrant’s. Nevertheless,
Registrant’s clients may be able to obtain more favorable brokerage commission rates
elsewhere particularly when one considers the advisory fees being paid to Registrant. If a
client so desires to use another unaffiliated brokerage firm, the client may notify Registrant
in writing. Clients who use a broker they have selected may pay higher or lower
commissions than those charged by S.F. Sentry Securities, Inc. See Item 12 regarding