Item 5 Fees and Compensation
SMAs; The annual fee for the firm's investment supervisory services is 1% of the market value of each
client's account. Fees are charged quarterly in arrears based upon the asset values on the last day of
the previous calendar quarter. The first advisory fee will be assessed on a pro-rata basis, taking into
account the time for which the account was not managed by the firm. Upon termination of a managed
account agreement, the client incurs charges for bona fide advisory services rendered to the point of
termination and such fees are due and payable by the client. In general, we require a minimum account
size of $1,000,000 to open and maintain an advisory account, which may be waived in our discretion.
Fees to the firm are generally not negotiable. The firm, however, has the right to reduce or waive the
management fee charged to any client account.
Fees are either automatically deducted from the account, as authorized in writing by the client, or billed
at each quarter end. For accounts from which fees are automatically deducted, the quarterly statement
provided to the client by the qualified custodian shows fees for services provided
Mutual funds, closed-end funds, and exchange traded funds are among the investment vehicles used,
and the investment strategies, objectives and types of securities held by such funds vary widely. In
addition to the advisory fee charged by the firm, clients indirectly pay for the expenses and advisory
fees charged by the funds in which their assets are invested.
All such funds incur operating expenses in connection with the management of the fund. Clients will
incur brokerage and other transaction costs (see Item 12 of this brochure for more information).
Investment funds pass some or all of these expenses through to their shareholders (the individual
investors in the funds) in the form of management fees. The management fees charged vary from fund
to fund. In addition, funds charge shareholders (individual investors in the funds) other types of fees
such as early redemption or transaction fees. These charges also vary widely among funds. As a
result, clients will still pay management fees and other "indirect" fees and expenses as charged by
each mutual fund (or other pooled investment vehicle) in which they are invested. The firm only
charges management fees as outlined above.
Mutual Funds:
SL Advisors serves as the investment adviser to a registered investment company. The fees and
compensation paid to SL Advisors by an Investment Company are described in the Investment
Company's Prospectus. A copy of each Investment Company's Prospectus is available through the
SEC's website at www.sec.gov/edgar/searchedgar/companysearch.html. The fees and compensation
paid to SL Advisors is paid by the Investment Company in accordance with SL Advisor's advisory
agreement. An Investment Company investor indirectly bears its pro rata share of the fees, expenses or
charges described in the Investment Company's Prospectus. Such fees, expenses and charges include,
but are not limited to, fees incurred for legal, audit and custodial services provided to the Investment
Company and transactions effected for the Investment Company such as brokerage and execution
charges, markups and commissions. Please see the discussion below in "Item 12. Brokerage Practices"
for a description of brokerage and execution charges. SL Advisors does not receive sales commissions
in connection with sales of interest in an Investment Company.
When SL Advisors recommend investment companies for SMA accounts, for which it serves as portfolio
manager, it does not charge a separate management fee for the SMA assets allocated to the investment
companies. SL Advisors’ compensation comes from the investment company.
Private Funds: SL Advisors' management of private funds, and the fees thereof, are negotiated on
a case-by-case basis.