Item 5 – Fees and Compensation
We charge an investment management fee that starts at 1% of a client’s assets under management for separately managed accounts. The
investment management fee is negotiable depending on certain client-specific factors including, but not limited to, the size of the account, the
aggregate value of related accounts, the nature of the relationship, the complexity of the services provided and other factors. Additionally, the
firm waives the investment management fees for employees and immediate family members.
Each client executes an investment management contract with Zuckerman Investment Group which establishes the investment management
fee. We bill clients in advance each calendar quarter and typically directly debit the fee from the clients’ bank or brokerage custodial accounts.
Certain clients elect to be billed quarterly for investment management fees as incurred payable by check. Accounts initiated or terminated during
a calendar quarter will generally be charged a prorated fee based on the number of days the client account was open during that quarter. Upon
termination of any account, any prepaid, unearned fees will be refunded. Fees are calculated based on the value of the client’s assets under
management as valued on the close of business on the last business day of the previous quarter.
OTHER FEES AND EXPENSES
Zuckerman Investment Group's fees are exclusive of brokerage commissions, transaction fees, and other related costs and expenses incurred by
the client. Clients may incur certain charges imposed by custodians, brokers, third-party investment managers and other third-parties. These
charges include, but are not limited to, management and performance fees charged by third-party managers, ticket charges, brokerage
commissions, custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and other fees
155 North Wacker Dr. Suite 1700 Chicago, IL 60606 zuckermaninvestmentgroup.com
and taxes on brokerage accounts and securities transactions. Mutual funds, money market funds, exchange traded funds and private funds also
charge internal management fees, which are disclosed in a fund’s prospectus or offering documents. These charges, fees and commissions are
exclusive of and in addition to Zuckerman Investment Group’s management fee.
In addition, the firm may charge a fixed or “project based” fee for financial planning projects. Similar to management fees, these fees are negotiable
on a client-by-client basis.
Neither Zuckerman Investment Group nor its supervised persons accept compensation for the sale of securities or other investment products.
Item 12 further describes the factors that Zuckerman Investment Group considers in selecting or recommending broker-dealers for client
transactions.
Item 15 further discusses Zuckerman Investment Group’s use of a pricing hierarchy to value certain securities (primarily bonds) and the impact
it has on investment management fees.
ZVS LLC FEES
The fees charged to ZVS LLC are described in the Offering Documents provided to its investors. At the inception of the fund, during ZVS LLC’s
investment period, Zuckerman Investment Group earned a management fee quarterly in advance at a rate of 0.375% (i.e., 1.5% per annum) of
each investor’s capital commitment amount to ZVS LLC. As of September 1, 2025, the ZVS LLC agreement was amended to no longer accrue fees
quarterly after 6/30/25. Fees for the remainder of the investment will instead be earned at the end of the investment. At the end of the
investment period, Zuckerman Investment Group will be compensated by a management fee paid at a rate equal to 0.125% per month (1.5%
per annum) for each month held from July 1, 2025 multiplied by the fair market value of ZVS LLC’s investment in the Underlying Fund, not to
exceed the management fee that would have been paid under the initial agreement.
Zuckerman Investment Group retains full discretion to negotiate fees and may waive or impose different fees on any ZVS investor. The firm
deducts the fees directly from ZVS LLC.
In addition, investors in the ZVS LLC generally will be subject to higher operating expenses than investors that invest directly in the private
investment vehicle managed by the third-party investment manager. By gaining access to the Underlying Fund, investors in ZVS LLC will bear a
proportionate share of the fees and expenses of ZVS LLC (including organizational expenses, operating costs, and administrative fees) and,
indirectly, fees and expenses of the Underlying Fund.