Stedfast Capital Management LLC

Item 5 – Fees and Compensation
Investment Management
Fees are paid quarterly in advance not to exceed 02.00% based on the scope and complexity of the services to be
provided. A portion of this fee can be shared with third parties
Valuation
Securities valuation is the process of determining the intrinsic value of a financial asset, such as stocks, bonds, or
other investments, to assess its worth relative to its current market price. The goal of securities valuation is to
help investors make informed decisions about buying, holding, or selling securities.
Valuation is a function of the independent custodian.
Mutual Fund Share Class Disclosures
Section 206 of the Investment Advisers Act of 1940 (“Advisers Act”) imposes a fiduciary duty to act in a client’s
best interests and specifically prohibits investment advisers, directly or indirectly, from engaging in any
transaction, practice, or course of business which operates as a fraud or deceit upon any client or prospective
client. However, the fiduciary duty to which advisers are subject is not specifically defined in the Advisers Act
or the Commission rules but reflects a Congressional recognition “of the delicate fiduciary nature of an investment
advisory relationship” as well as a Congressional intent to eliminate, or at least expose, all conflicts of interest
which might incline an investment adviser, consciously or unconsciously, to render advice which was not
disinterested. The purpose of 12b-1 fees, as approved by the SEC, are to cover marketing expenses and
shareholder services such as the support services.
Mutual funds offer different share classes, each with varying fee structures and features, to accommodate different
types of investors. Below is a breakdown of the most common mutual fund share classes.
   •   Class A Shares: These shares typically charge a front-end sales load, which is a fee paid when the shares
       are purchased. This fee is a percentage of the total investment.
           o Generally have lower ongoing expenses compared to other share classes because the front-end
              load compensates the broker or advisor for their services.
           o Investors can receive discounts on the front-end load based on the size of the investment, known
             as breakpoint discounts.
   •   Class B Shares: Class B shares often have a contingent deferred sales charge (CDSC), which is a fee paid
       when shares are sold, typically decreasing over time (usually over six to eight years).
           o These shares generally have higher ongoing expenses than Class A shares.
           o Usually convert to Class A shares after the CDSC period ends, resulting in lower ongoing fees.

 Disclosure Brochure

   •   Class C Shares: Class C shares typically charge a level load, which is an annual fee as long as the shares
       are held, in addition to higher ongoing expenses.
           o Unlike Class B shares, Class C shares do not convert to Class A shares, meaning the higher fees
             continue indefinitely.
           o Include 12b-1 fees to cover marketing and distribution expenses.
           o Often have a small back-end load if shares are sold within a short period (usually one year).
   •   Class I Shares: also known as Institutional Shares, are a class of mutual fund shares designed primarily
       for institutional investors, such as pension funds, endowments, and large-scale investment managers.
           o Typically have lower expense ratios compared to other share classes, such as A, B, or C shares.
             This is because institutional investors usually invest larger amounts, allowing the fund to spread
             its costs over a larger asset base.
           o Generally require a higher minimum investment, often starting at $500,000 or more, making them
             more suitable for institutional investors or high-net-worth individuals.
   •   R Shares: Designed for retirement plans like 401(k) plans.
           o Offer various fee structures to meet the needs of different retirement plan sponsors.
           o Each share class is structured to meet the needs and preferences of different investors, balancing
             the cost of investing with the services provided. The choice between them should be based on the
             investor's financial situation, investment goals, and how long they plan to hold the investment.
   •   NTF (No Transaction Fee) Mutual Funds: Mutual funds without a transaction fee or commission to the
       brokerage or platform through which they are purchased.
           o Not all funds are available as NTF funds, can be subject to minimum investment amounts, and
             availability can vary by broker/dealer
           o Some NTF mutual funds include 12b-1 fees as part of their expense structure. This helps the fund
             cover distribution and marketing costs, potentially allowing the fund to be offered without
             transaction fees.
   •   Direct Purchase Mutual Funds: Often available directly from the mutual fund company. Direct
       purchase mutual funds can be a cost-effective option for knowledgeable investors who are comfortable
       managing their own investments and wish to avoid intermediary fees. However, it requires a proactive
       approach to research and decision-making.
The choice of the most beneficial mutual fund share class involves considering ticket charges, 12b-1 fees and the
asset management fee. Fees are considered in totality, not in isolation. Sometimes, investing in a share class with
12b-1 fees can be the more cost-effective option rather than simply avoiding 12b-1 fees. Advisor has a fiduciary
duty to select the share class that best serves the client's interests, ensuring a comprehensive fee analysis to
determine the optimal choice.
For a wrap fee account, a different conflict of interest is introduced because the advisor has an incentive to not
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Item 7 – Types of Clients
The advisory services offered by Advisor are available for individuals, individual retirement accounts (“IRAs”),
banks and thrift institutions, pension and profit-sharing plans, including plans subject to Employee Retirement
Income Security Act of 1974 (“ERISA”), trusts, estates, charitable organizations, state and municipal government
entities, corporations and other business entities.