Item 5 – Fees and Compensation
SeaBridge charges management fees for its services. Similar services may be obtained from
other advisers at a lower cost. For its discretionary clients, these fees are based on assets
under management and are generally charged quarterly in advance based upon the market
value of the assets on the final business day of the previous quarter. For certain illiquid private
securities, billing will be based on the most recently available valuation which typically has a
one quarter lag. For most discretionary clients, SeaBridge deducts the fees directly from the
client accounts after the quarter-end package of reports (which includes a copy of the
management fee invoice which clients can review) is sent to clients. Clients may, however,
choose to pay their fees directly instead of authorizing SeaBridge to deduct the fees from their
accounts.
Advisory fees for discretionary accounts are negotiated on a case-by-case basis based on the
type of account and investment strategy. Fees are generally calculated as an annual percentage
of assets under management and billed quarterly in advance based on the value of the account
at the beginning of each calendar quarter. Unless otherwise agreed in writing, advisory fees are
assessed on cash and cash equivalents.
For certain accounts where SeaBridge serves as a discretionary sub-adviser, fees are calculated
and billed in arrears based on account values at the end of each calendar quarter.
Certain client accounts that transitioned to SeaBridge from other advisers may be subject to
alternative fee schedules or breakpoint arrangements.
Fees charged by any third-party manager utilized within a client portfolio are separate from and
in addition to SeaBridge's advisory fee and will be disclosed in the applicable third-party
manager agreement.
Standard Annual Advisory Fees
Strategy Annual Rate
International Strategy 1.50%
Asia Strategy 1.15%
Global Growth Strategy 1.10%
Global Diversified Strategy 1.10%
Core Global Strategy 1.10%
Yield Growth Strategy 1.00%
Cautious Core Strategy 0.50%
For certain larger accounts, SeaBridge may apply a layered fee schedule based upon the
standard annual fee rates noted above, so that with respect to both individual and institutional
accounts in excess of (i) $3,000,000, a fee rate equal to .75 of the standard rate otherwise
applicable to such account would apply to that portion of the account above $3,000,000, and
(ii) $10,000,000, a fee rate equal to .50 of the standard rate otherwise applicable to such
account would apply to that portion of the account above $10,000,000 (while the fee rate in
clause (i) of this paragraph would apply with respect to the $3,000,001 - $10,000,000 layer of
any such account). For clients or groups of clients with more than one account under
management by SeaBridge, SeaBridge may consider the total assets under management for
that client, client household, or consultant and may apply a discounted fee based on the total
asset size.
Fees may also be reduced for employees and their families, officers, or Senior Advisors of
SeaBridge, or for educational or philanthropic institutions, or others.
The standard fee schedules described above apply to most discretionary accounts. Advisory fees
are negotiable based on the circumstances of the client relationship and may vary among clients.
Our firm charges on a flat fee basis for financial planning and consulting services to individuals
and institutions. The total estimated fee, as well as the ultimate fee charged, is based on the
scope and complexity of our engagement with the client but will not exceed $300,000 annually.
The fee-paying arrangements will be determined on a case-by-case basis and will be detailed in
the signed consulting agreement. Our firm will not require a retainer exceeding $1,200 when
services cannot be rendered within 6 months.
In certain instances, we may charge clients a consulting fee that is separate and in addition to
the management fees charged to their accounts. These are cases where our consultative
services go far beyond the basic planning and suitability maintenance provided under our
management agreement. Clients under such engagements will execute two separate
agreements clearly outlining the separate nature of these services and their respective fees.
If a client terminates its relationship with SeaBridge, fees will be reimbursed on a pro rata basis
for the quarter as of the date assets are removed from the firm's supervision. If a client opens
an account during a quarter, fees for the quarter are prorated.
SeaBridge’s fees are exclusive of brokerage commissions, transaction fees, and other related
costs and expenses which shall be incurred by the client. Clients may incur certain charges
imposed by custodians, brokers, and other third parties such as management fees, custodial
fees, transaction charges, ADR fees, 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. Mutual funds and exchange traded funds also charge internal
management fees, which are disclosed in a fund’s prospectus. Such charges, fees and
commissions are exclusive of and in addition to SeaBridge’s management fee, and SeaBridge
shall not receive any portion of these commissions, fees, and costs.
Item 12 further describes the factors that SeaBridge considers in selecting or recommending
broker-dealers for client transactions and determining the reasonableness of their
compensation (e.g., commissions).