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Revenue Sharing: SMITH HAYES Financial Services Corporation receives payments from certain investment advisers, distributors and other service providers to mutual fund companies, 529 plan programs, insurance companies and retirement plan providers (collectively referred to as “Product Partners”). These payments are commonly referred to as “Revenue Sharing” and are in addition to sales charges, annual distribution and service fees (referred to as"12b-1 fees"), applicable redemption fees, deferred sales charges, and other fees and expenses which are disclosed in the fee table in a fund’s prospectus that we may also receive for selling the funds, maintaining client account information and providing other administrative services to the mutual funds. Because Revenue Sharing payments are not made by the mutual fund or are otherwise included as a cost of your investment, they are not an additional charge to you.
Normally Revenue Sharing payments are determined on two components (i) the amount of sales by us of a particular mutual fund family to our clients, and (ii) the asset value of a particular mutual fund family's shares held by our clients at our clearing firm National Financial Services LLC. The payments then are determined by applying an “applicable percentage” usually expressed in “basis points”. The applicable percentage is subject to change but is usually around 5 basis points. None of the Revenue Sharing payments we receive are rebated to you or paid to your representative.
Revenue-sharing payments may present a conflict between our interests and those of our customers because the payments may give us a financial incentive to recommend that our customers buy and hold shares of those funds that we maintain on our distribution platform and for which we receive revenue-sharing payments.
At the present time SMITH HAYES receives 5 basis points (0.005%) on No Transaction Fee (“NTF”) mutual funds purchased through our clearing firm, National Financial Services LLC. A list of NTF Funds for which we receive Revenue Sharing and the applicable percentage for each is available on request.
In addition to the payments described above, from time to time, mutual fund distributors and/or advisors will reimburse SMITH HAYES for expenses we incur in connection with certain training and educational meetings, conferences or seminars. Also, in the ordinary course of business, our representatives may receive promotional items, meals or entertainment, or other similar "non cash" compensation from distributors with whom we do business.