Item 5 – Fees and Compensation
Fund Fees and Expenses
Fund management fees paid to Selz and other expenses that may be paid by the Fund are disclosed in
the Fund’s documents and are paid in accordance with same.
Fees are paid quarterly in advance in accordance with the documents at the rate of 0.25% (1.0%
annually) of the Net Asset Value of the Fund on the last business day of the immediately preceding
calendar quarter.
Selz fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses which may be incurred by the Fund, such as charges imposed by custodians, brokers and
other third parties for wire transfers, electronic fund transactions, or fees and taxes on securities
transactions. For a detailed description of expenses that may be paid by the Fund, investors and
prospective investors should refer to the Fund’s offering documents.
Fee Schedule for Separately Managed Accounts (“SMAs”); Other Expenses
Selz is compensated for SMA investment advisory services based on a percentage of the respective
assets managed. The annual fee for portfolio management services involving equity portfolios is charged
as a percentage of assets under management pursuant to the following schedule:
2% annually on the first $5 million of assets under management
1% annually on assets under management above $5 million
SMA fees are based on account size, risk objectives and financial instruments traded and can be
changed for certain clients or waived at Selz’s discretion. Fee arrangements are incorporated into
respective advisory agreements. The fee has been waived for family and proprietary accounts of Bernard
Selz.
SMAs are billed quarterly in advance based on the fair market value of the client account assets as
calculated by the custodian on the last business day of the immediately preceding calendar quarter.
Amounts contributed to an SMA account, including its initial capital, on a date other than the first day of a
calendar quarter shall be charged a pro-rated fee for that quarter with respect to such contribution, based
on the number of days remaining in that quarter and based on the net market value of the contributed
capital.
The fee on amounts withdrawn from an SMA account, whether partial or full, on any date other than the
last day of a quarter, shall be refunded based on the number of days remaining in that quarter and based
on the market value of the of the withdrawal at the beginning of the quarter.
Selz fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses which may be incurred by the SMA account, such as charges imposed by custodians, brokers
and other third parties for wire transfers, electronic fund transactions, or fees and taxes on securities
transactions.
Item 12 further describes the conflicts of interest associated with the receipt of brokerage commissions.