Seros Financial LLC

Item 5: Fees and Compensation

Conflict Between Revenue Share Class (12b-1) and Non-Revenue Share Class Mutual Funds:
Revenue share class/12b-1 fees are deducted from the net asset value of the mutual fund and
generally, all things being equal, cause the fund to earn lower rates of return than those mutual
funds that do not pay revenue sharing fees. The client is under no obligation to utilize such
programs or mutual funds. Although many factors will influence the type of fund to be used, the
client should discuss with their investment adviser representative whether a share class from a
comparable mutual fund with a more favorable return to investors is available that does not
include the payment of any 12b-1 or revenue sharing fees given the client’s individual needs
and priorities and anticipated transaction costs. In addition, the receipt of such fees can create
conflicts of interest in instances where the custodian receives the entirety of the 12b-1 and/or
revenue sharing fees and takes the receipt of such fees into consideration in terms of benefits it
may elect to provide to the firm, even though such benefits may or may not benefit some or all
of the firm’s clients.

Item 7: Types of Clients
Seros offers its investment services to various types of clients including individuals and high-net-
worth individuals, pension and profit sharing plans, charitable organizations, and corporations
and other businesses. Seros offers non-discretionary sub-advisory services to certain unaffiliated
private funds.
Seros generally requires a minimum account size of $500,000. Seros, in its sole discretion, may
waive the required minimum.
Sub-advisers may also have minimum account requirements, which will be disclosed in the sub-
advisers’ separate disclosure documents.