FEES AND COMPENSATION
Advisory Fees. SFI charges each Client an asset-based fee equal to a percentage of the assets in such
Client’s account, as set forth in the Client’s investment advisory agreement. SFI’s fee is charged at
different rates based on the portion of the Client’s account consisting of (i) equity and equity-related
securities, and (ii) fixed-income instruments, with the overall rate decreasing as the Client’s assets under
management with SFI increase. SFI’s current fee schedule is as follows:
Aggregate Dollar Value of Annualized Equity Fee Rate Annualized Fixed Income Fee
Assets in Client’s Account Rate
$0 - $499,999 1.75% 0.4%
$500,000 - $999,999 1.50% 0.4%
$1,000,000 - $1,999,999 1.25% 0.4%
$2,000,000 and up 1.00% 0.4%
Accounts of multiple Clients who reside in the same household will be combined and charged fees on an
aggregate basis. However, these fees may be negotiated by SFI with respect to certain Client accounts
based on a variety of factors, which may include the size and composition of the Client’s account, special
services agreed upon with the Client or other factors deemed relevant by SFI.
The annualized fee payable to SFI by a Client is paid on a quarterly basis, in advance. Fees generally are
deducted from the Client’s account in custody at Pershing, LLC, the clearing broker for Client accounts
(the “Clearing Broker”). The first payment generally is due upon execution of the Client’s investment
advisory agreement, and will be prorated for a partial quarter in the event the investment advisory
agreement is executed at any time other than the first day of a calendar quarter. Subsequent payments
generally are due and will be assessed on the first day of each calendar quarter based on the value of the
Client’s assets under management at the beginning of such quarter.
If a Client deposits assets in its account during a calendar quarter and subsequently withdraws all or a
portion of such assets prior to the end of the same quarter, the prorated fee chargeable with respect to such
assets for the partial quarter will be payable as of the beginning of the following quarter.
In the event that a Client’s investment advisory agreement with SFI is terminated during a calendar
quarter, SFI will calculate and refund to the Client the “unearned” portion of its fee for such calendar
quarter, based on the number of days remaining in the quarter after the agreement is terminated.
Other Fees and Expenses. SFI’s fees are exclusive of transaction fees, and other related costs and
expenses that will be incurred by a Client with respect to the transactions in its account. (See “Brokerage
Practices” below for additional information regarding the brokerage arrangements for Client accounts.)
Additionally, SFI’s fees described above do not include Individual Retirement Account (“IRA”) and
Qualified Retirement Plan account termination fees (if applicable), which will also be billed to the Client
(as applicable). Clients will also bear the investment management or other fees charged by any mutual
funds or ETFs (as defined below) in which the Client’s account may invest, as disclosed in the prospectus
for the applicable fund. Such fees are in addition to SFI’s investment advisory fees as described above.
PERFORMANCE BASED FEES AND SIDE-BY-SIDE MANAGEMENT
SFI does not charge its Clients any performance-based fees (fees based on a share of capital gains on or
capital appreciation of the assets of a Client). Please see “Other Financial Industry Activities and
Affiliations -- Other Activities of SFI and Related Persons” for a discussion of the management of
accounts with different fee structures by SFI and its affiliates.