Item 5. Fees and Compensation
SIA offers its services on a fee basis, which may include fixed fees as well as fees based upon assets under
management or advisement.
Investment Management and Wealth Management Fees
SIA provides investment management services for an annual fee (“management fee”) based on the amount
of assets under SIA’s management. The fee varies depending upon the size of a client’s portfolio and the
type of services rendered. The annual fee is capped at 125 basis points (1.25%) of a client’s assets under
management.
The annual fee is prorated, and generally charged quarterly in advance, but may also be charged in arrears,
based upon the market value of the assets being managed by SIA on the last day of the previous billing period
or by daily average account balances.
If assets are deposited into or withdrawn from an account after the inception of a billing period, the fee
payable with respect to such assets is not adjusted or prorated to reflect the change in portfolio value. For the
initial period of an engagement, the fee is calculated on a pro rata basis using average daily account
balances. In the event the Agreement is terminated, the fee for the final billing period is prorated through the
effective date of the termination and the outstanding balance is charged to the client or unearned portion is
refunded to the client, as appropriate.
For certain clients on a fixed fee, the fee is negotiated directly with the client based on the size and scope of
the relationship.
Use of Margin
Clients may authorize SIA to use margin in the management of the client’s investment portfolio. In these cases,
the fee payable will be assessed on the account value net of margin debt, plus cash.
Additional Fees and Expenses
In addition to the advisory fees paid to SIA, clients will also incur certain charges imposed by other third
parties, such as broker-dealers, qualified custodians, fund managers, trust companies, banks, and other
financial institutions (collectively “Financial Institutions”). These additional charges may include securities
brokerage commissions, transaction fees, custodial fees, fees charged by the Independent Managers,
Hedge Funds, Investment Consulting Firms and Managed Portfolio Advisors; charges imposed directly by
a mutual fund or ETF in a client’s account, as disclosed in the fund’s prospectus (e.g., fund management fees
and other fund expenses), deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and
electronic fund fees and other fees and taxes on brokerage accounts and securities transactions. Clients are
encouraged to read such prospectuses carefully to evaluate such fees. The Firm’s brokerage practices
are described at length in Item 12, below.
Fee Debit
Clients generally provide SIA with the authority to directly debit their accounts for payment of the Firm’s
investment advisory fees. The Financial Institutions that act as qualified custodians for client accounts have
agreed to send statements to clients not less than quarterly detailing all account transactions, including any
amounts paid to SIA. Though generally not preferred, certain legacy clients have elected to have SIA send
them an invoice for direct payment.
Account Additions and Withdrawals
Clients may make additions to and withdrawals from their account at any time. Additions may be in cash or
securities provided that the Firm reserves the right to liquidate any transferred securities or decline to accept
certain securities into a client’s account. Clients may withdraw account assets on notice to SIA, subject to
the usual and customary securities settlement procedures. Further, certain assets may have limited liquidity
and the ability to withdraw will be subject to the underlying assets liquidity terms and availability. SIA designs
its portfolios as long-term investments, and the withdrawal of assets may impair the achievement of a client’s
investment objectives. SIA may consult with its clients about the options and implications of transferring
securities. Clients are advised that when transferred securities are liquidated, they may pay transaction fees
and/or mutual fund fees. In addition, transfer of securities may have tax ramifications for the client.
Commissions or Sales Charges for Recommendations of Securities
Clients can engage certain Supervised Persons of SIA who are dually registered as investment advisor
representatives (IAR) of SIA and registered representatives (RR) of Kingswood Capital Partners, LLC
(formerly “Chalice Capital Partners, LLC”), to render securities brokerage services under a separate
commission-based arrangement with Kingswood. Clients are under no obligation to engage such persons and
may choose brokers or agents not associated with SIA. These RRs may be entitled to a portion of the
brokerage commissions paid to Kingswood, as well as a share of any ongoing distribution or service (trail)
fees from the (12b-1) sale of mutual funds. SIA may also recommend no-load or load-waived funds, where
no sales charges are assessed. Prior to effecting any transactions, clients are required to enter into a
separate agreement with Kingswood. SIA does not receive any portion of commissions or transaction fees
charged by Kingswood.
Additionally, dually registered Supervised Persons may offer securities brokerage services to SIA clients.
Certain Supervised Persons of SIA are also insurance agents of affiliate Robert Schechter & Associates, Inc
(dba “Schechter Wealth,” “Schechter”), a licensed insurance agency, and may offer insurance products under
a separate commission arrangement. (See Item 10. Other Financial Activities and Affiliations for a discussion
of conflicts of interest stemming from SIA Supervised Persons offering these non-advisory services.)
Advisory Fees Negotiable
SIA, in its sole discretion, reserves the right to negotiate fees based upon certain criteria including, but not
...