Item 5. Fees and Compensation
Asset-Based Compensation
The client will be required to enter into a written agreement setting forth the terms and conditions of the
engagement and the scope of the services to be provided. Compensation for the Adviser’s investment
management services is based on a negotiable fee scale up to an annual rate of 2.0% of the client’s assets
under management, subject in certain instances to a minimum fee.
The basic fee schedule of the Adviser for separately managed accounts is the following:
Investment Management Fee
(As an Annual
Assets in the Account % of Assets)
Up to $1,000,000 1.50%
$1,000,001 to $5,000,000 1.25%
$5,000,001 to $25,000,000 1.00%
Over $25,000,000 Negotiable
Clients transferring management of an account to the Adviser from another investment advisory firm may
continue to be charged the lesser of either: (i) fees in accordance with the client’s prior billing arrangements;
or (ii) the above fee schedule. The Adviser may offer lesser or different fee schedules to clients based on
a variety of factors including, but not limited to, the nature of the investments, length of relationship with
the Adviser, a pooling of family assets and other factors.
Occasionally various related client accounts will be grouped together to qualify for a reduced advisory fee
(“family billing”). Some advisory accounts are managed at reduced fees or no fees. These fee arrangements
may be amended from time to time with the written consent of the client.
Advisory fees are generally billed monthly in arrears (and may be billed quarterly in arrears if agreed with
client consent) and are calculated based on the market value of assets under management as of the end of the
applicable billing period. If a new client account is established during a month or a client makes an addition
to its account during a month, the investment management fee will be prorated for the number of days
remaining in the month. If a client’s investment management agreement is terminated or a liquidation
withdrawal is made from a client account during a month, the fee payable to the Adviser will be calculated
based on the value of the assets on the termination date or withdrawal date and prorated for the number of
days during the month in which the investment management arrangement was in effect or such amount was
in the account. The Adviser has the discretion to postpone billings as it deems necessary. The Adviser is paid
a management fee for the services it provides to the Fund.
For clients who engage the Adviser for trustee services, additional fees may apply. Trustee fees are separate
from investment advisory fees and may be charged as a flat fee, hourly rate, or a percentage of trust assets
under management. These fees will be outlined in the applicable trustee agreement. Clients should be aware
that the Adviser may receive compensation for both trustee and investment advisory services, which presents
a conflict of interest as the firm has an incentive to manage trust assets to increase compensation.
Performance-Based Compensation
The Adviser currently does not have performance-based compensation arrangements.
Fee Payments
Clients select the method by which they would like to pay the investment management fee. Unless otherwise
provided for in the investment management agreement or contract, the Adviser deducts the investment
management fee from client accounts by instructing the client’s custodian to do so. However, some clients
prefer to be billed directly for the investment management fee, which can be provided for in the investment
management agreement or contract. The frequency of fee payment will be as agreed to by the client and the
Adviser. Unless otherwise provided for in the investment management agreement or contract, the Adviser
deducts the investment management fees from client accounts or directly bills clients, as agreed to, on a
monthly basis. For some clients the Advisory fee is payable quarterly, in arrears, and is calculated on the basis
of the total market value of assets under management in the client account as of the end of each quarter.
• Fee Adjustments. From time to time, the Adviser may, in its discretion and with client consent,
temporarily or permanently reduce, waive, or otherwise modify its investment management fee rate for
certain clients. Such adjustments may be made for client specific reasons and generally do not require
an amendment to the client’s advisory agreement. Any increase in advisory fees above the rate specified
in the client’s agreement would require execution of a new or amended written agreement prior to
implementation
Other Account Expenses
In addition to paying investment management fees to the Adviser, client accounts will also be subject to
other expenses that are not paid to the Adviser. These include brokerage commissions and transaction costs
for the execution of securities transactions by a third-party broker-dealer, custody fees charged by the client’s
custodian, and other related costs. As further described in response to Item 12 (below), Sicart generally
recommends that clients utilize the brokerage, clearing and custodial services of one or more recommended
custodial platform providers for client accounts (each a “Recommended Custodian”). If engaged by client as
custodian, the Recommended Custodian will provide custody, execution and clearance and settlement services
for securities and other assets held in the client’s account. Sicart is not affiliated with any of the Recommended
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