Shum Financial Group Inc

Item 5: Fees and Compensation
Method of Compensation and Fee Schedule
SFG bases its fees on a percentage of assets under management, a fixed fee, and on an hourly
basis.
ASSET MANAGEMENT
SFG offers discretionary and non-discretionary asset management services to advisory clients.
SFG charges an annual investment advisory fee based on the total assets under management
as noted in the fee schedule below. SFG’s annual advisory fees are as follows:
          Account Value                  SFG Annual Fee                    Quarterly Fee
         $0.00 - $500,000                    1.00%                             0.25%
      $500,001 - $1,000,000                  0.95%                           0.2375%
     $1,000,001 - $2,000,000                 0.90%                            0.225%
     $2,000,001 - $3,000,000                 0.85%                           0.2125%
     $3,000,001 - $5,000,000                 0.80%                             0.20%
       $5,000,001 and Over                   0.75%                           0.1875%

The annual fee may be negotiable. Accounts within the same household may be combined for a
reduced fee. Fees are billed quarterly in advance based on the amount of assets managed as
of the last business day of the previous quarter. If margin is utilized, the fees will be billed based
on the gross asset value of the account. Initial fees for partial quarters are pro-rated. Quarterly
advisory fees deducted from the clients' account by the custodian will be reflected in a provided
fee invoice as fees are withdrawn. Lower fees for comparable services may be available from
other sources. Clients may terminate their account within five (5) business days of signing the
Investment Advisory Agreement for a full refund. Clients may terminate advisory services with
thirty (30) days written notice. For accounts closed mid-quarter, the client will be entitled to
a pro rata refund for the days service was not provided in the final quarter. Client shall be
given thirty (30) days prior written notice of any increase in fees, and client will acknowledge,
in writing, any agreement of increase in said fees.
Envestnet
The fees charged by SFG are in addition to the fees charged by Envestnet, any other
investment advisor, and the custodian.
For clients utilizing the Envestnet platform, fees for SFG will be based on assets under
management as follows:

                                       Shum Financial Group, Inc.

    Assets Under M anagement               Annual Fee               Quarterly Fee (in advance)
         Up to $1,000,000                      .75%                           .188%
      $1,000,001 to $2,000,000                 .70%                           .175%
     $2,000,001 to $3,000,000                  .65%                          .1625%
       $3,000,001 and Over                     .60%                           .150%

The annual Fee may be negotiable. Accounts within the same household may be combined
for a reduced fee. Fees are billed quarterly in advance. Envestnet’s billing services calculates
the fees for Envestnet, SFG, the custody fee, and the manager fee. Monthly prorates are run to
capture additional deposits or withdrawals and intra quarter account opening and closings. Fees
collected by Envestnet from the client account will be distributed to the appropriate parties
for payment. Lower fees for comparable services may be available from other sources. Clients
may terminate their account within five business days of signing the Investment Advisory
Agreement with no obligation. Clients may terminate advisory services with thirty (30) days
written notice. Client will be entitled to a pro rata refund for the days service was not provided
in the final quarter. Client shall be given thirty (30) days prior written notice of any increase
in fees.
ERISA PLAN SERVICES
The annual fees are based on the market value of the Included Assets and will not exceed 1%.
Fees may be charged quarterly or monthly in arrears or in advance based on the assets as
calculated by the custodian or record keeper of the Included Assets (without adjustments for
anticipated withdrawals by Plan participants or other anticipated or scheduled transfers or
distribution of assets) on the last business day of the previous
quarter or month. If the services to be provided start any time other than the first day of a quarter
or month, the fee will be prorated based on the number of days remaining in the quarter or
month. If this Agreement is terminated prior to the end of the fee period, SFG shall be entitled
to a prorated fee based on the number of days during the fee period services were provided
or client will be due a prorated refund of fees for days services were not provided in the billing
cycle.
The fee schedule, which includes compensation of SFG for the services is described in detail
in Schedule A of the ERISA Plan Agreement. The Plan is obligated to pay the fees, however the
Plan Sponsor may elect to pay the fees. Client may elect to be billed directly or have fees
deducted from Plan Assets. SFG does not reasonably expect to receive any additional
compensation, directly or indirectly, for its services under this Agreement. If additional
compensation is received, SFG will disclose this compensation, the services rendered, and
the payer of compensation. SFG will offset the compensation against the fees agreed upon
under this Agreement.
FINANCIAL PLANNING and CONSULTING
SFG charges either an hourly fee or a fixed fee for financial planning. Prior to the planning process
the client will be provided an estimated plan fee. Pricing will be according to the degree of
complexity associated with each client’s situation. The services include but are not limited to
a thorough review of all applicable topics including Estate Planning, Qualified Plans, Retirement
Income, Social Security, College Planning, Investments, Taxes, and Insurance. Client will pay
...

Item 7: Types of Clients
Description
SFG primarily provides investment advice to individuals, high net worth, businesses, and
charitable organizations. Client relationships vary in scope and length of service.

Account Minimums
SFG does require an account minimum of $1,000,000 to open an account, accounts below the
stated minimums may be accepted on an individual basis at the discretion of SFG. Some
TPMs may require an account minimum, this will be disclosed in the TPM’s Form ADV 2.