Item 5 – Fees and Compensation
A. Fee Schedule
The fees and compensation payable to SCM are negotiable and vary among its Clients.
However, the range of compensation is generally as follows:
1. Management Fee
SCM typically receives a quarterly asset-based management fee calculated as a percentage of
each Client’s account, payable quarterly in arrears. The management fee is generally equal to
0.5% (per annum). The Firm may, in its sole discretion, reduce, waive or calculate differently
the management fee with respect to any Client.
2. Incentive Fee
SCM does not currently receive an incentive fee from its Clients. This Brochure will be
updated accordingly if the Firm anticipates receiving an incentive fee from its Clients in the
future.
3. Fee Comparison
The expenses of the Clients, including the management fee, may constitute a higher
percentage of average net assets than would be found in other investment vehicles or with
other investment advisers.
B. Payment of Fees
Management fees and third-party fees (discussed below) are deducted from Client assets.
Management fees, which are paid in arrears, are withdrawn at the end of the quarter.
C. Third-Party Fees
The Clients shall pay such costs and expenses as SCM shall reasonably determine to be
necessary, appropriate, advisable or convenient to realize each Client’s investment objective,
including but not limited to: (i) management fees; (ii) all general investment expenses; (iii)
all operating and administration expenses, including but not limited to, all custodial fees,
accounting, brokerage commissions, clearing fees, borrowing charges, interest on margin and
other borrowings, and withholding or transfer taxes incurred in connection with the Client
account; and (v) such other expenses as may be set forth in each Client’s Advisory Agreement.
SCM’s fees are exclusive of brokerage commissions, transaction fees, and other related costs
and expenses which shall be incurred by the Clients. Such charges, fees and commissions are
exclusive of and in addition to the Firm’s management fee, and the Firm shall not receive any
portion of these commissions, fees, and costs.
Please see Item 12 of this Brochure regarding brokerage.
Part 2A of ADV:
Stumpf Capital Management LLC Brochure
D. Prepayment of Fees
SCM does not expect Clients to prepay fees.
E. Outside Compensation for the Sale of Securities
Neither SCM nor its supervised persons accept compensation for the sale of securities or
other investment products outside of its association with the Firm.
The foregoing discussion in Item 5 represents SCM’s basic compensation
arrangements. The fees described above are structured to comply with Rule 205‐3
under the Advisers Act and applicable state laws. Fees and other compensation are
negotiable in certain circumstances and arrangements with any particular Client may
vary. Although the Firm believes its fees are competitive, lower fees for comparable
services may be available from other investment advisers.