Sheets Smith Wealth Management

Item 5 – Fees and Compensation
Sheets Smith Wealth Management’s fees are predominantly based on assets under
management. For a few clients, a fixed fee schedule is utilized. Also, advisors may charge
hourly fees for professional services that are not investment advisory in nature. Except as
described below, all the Firm’s fees are (1) negotiable, (2) agreed upon when the written
advisory agreement is signed, and (3) billed in arrears.

Each advisor is responsible for the amount they charge on the assets they manage. Typically,
the Firm’s advisors charge an annualized fee between 0.5% and 1% of the assets managed.
Various factors may dictate whether higher or lower fees are appropriate. These factors
include the size of the account, frequency of trading, the amount of client contact necessary,
the nature of the account, and the ease of administration. The Firm attempts to tailor both its
services and its fees to fit the needs and desires of clients. Regarding the sub-advisory
relationship with Carolina Financial Advisors, the Firm is paid 25% of the management fee
paid by the client and the Firm’s fee is received in arrears based on the account’s value at the
end of each calendar quarter and is paid directly by Carolina Financial Advisors. Depending
on client preferences and where the account is custodied, Sheets Smith Wealth Management
may deduct its fees directly from client accounts or bill clients for its fees.

Clients may incur custodial fees and/or broker fees for trades. If client assets are custodied
at Schwab Institutional, they do not pay custodial fees or commission fees for trades. Sheets
Smith Wealth Management reviews custodial fees charged by custodians for clients to
determine whether such fees are competitive under the circumstances. For investments in
mutual funds, the Firm generally utilizes no-load mutual funds in client accounts. For Schwab
Institutional clients, the Firm also attempts to minimize transaction costs by utilizing Schwab
OneSource no-load funds that do not carry a transaction fee.

Clients who invest in mutual funds are advised that they are paying the mutual fund
management fees in addition to the fees charged by the Firm.

Clients often incur other minimal fees when securities are purchased or sold on their behalf.
The Firm does not receive, directly or indirectly, any of these fees, which are typically paid
directly to the client’s broker-dealer, custodian, or mutual fund. These fees include, but are
not limited to, exchange fees and SEC fees.

In connection with its 401K plan advisory services, the Firm charges annual asset-based fees
in accordance with the annual fees described above. Negotiated fees are generally based on
the value of the plan’s assets and the complexity of the plan. These fees are normally billed

directly to the client but, in certain circumstances, may be directly debited from the client’s
account by the record-keeper, third party administrator or custodian.

Finally, the Firm does not employ anyone who receives (directly or indirectly) any
compensation from the sale of securities or investments that are purchased or sold for client
accounts or to which the Firm provides consulting expertise/services. As a result, the Firm is
a “fee only” investment advisor. Accordingly, the Firm is not aware of potential conflicts of
interest that could relate to any undisclosed compensation generated from client assets that
the Firm manages.

Item 7 – Types of Clients
Sheets Smith Wealth Management clients and prospective clients generally include wealthy
individuals and families, trusts, foundations, endowments, and retirement plans. The desired
minimum level of assets for new clients is $500,000 in investable assets with the flexibility to
accept new clients with fewer assets depending on a prospect’s asset growth potential and
relationship.