Item 5. Fees and Compensation
Investment Management Fee
Acertus provides investment management services for an annual fee based upon a percentage of the market
value of the assets being managed by Acertus. Acertus’ annual fee is exclusive of, and in addition to
brokerage commissions, transaction fees, and other related costs and expenses which are incurred by the
client. Acertus does not, however, receive any portion of these commissions, fees, and costs. Acertus’
annual fee is prorated and charged quarterly, in arrears, based upon the average month-end balance of the
assets being managed by Acertus during the previous quarter. The annual fee varies up to 1.20% depending
upon the market value of the assets under management and the type of investment management services to
be rendered. Acertus assets (with the exception of the mutual fund) have their own billing relationships
and are not aggregated with BIAS assets.
Fee Discretion
Acertus, in its sole discretion, may negotiate to charge a lesser management fee based upon certain criteria
(i.e., anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to be
managed, related accounts, account composition, pre-existing client, account retention, pro bono activities,
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Disclosure Brochure Acertus Capital Management, LLC
etc.). For example, investors in Acertus private funds who are also BIAS clients may pay reduced fund
management fees.
Fees Charged by Financial Institutions
As further discussed in response to Item 12 (below), Acertus generally recommends that clients utilize the
brokerage and clearing services of Fidelity Institutional Wealth Services (“Fidelity”) for investment
management accounts. However, Acertus may also implement trading strategies on other custodial
platforms.
Acertus may only implement its investment management recommendations after the adviser or client has
arranged for and furnished Acertus with all information and authorization regarding accounts with
appropriate financial institutions. Financial institutions include, but are not limited to, Fidelity, any other
broker-dealer recommended by Acertus, broker-dealer directed by the client, trust companies, banks, etc.
(collectively referred to herein as the “Financial Institutions”).
Clients may incur certain charges imposed by the Financial Institutions and other third parties such as
custodial fees, charges imposed directly by a mutual fund or ETF in the account, which are disclosed in the
fund’s prospectus (e.g., fund management fees and other fund expenses), deferred sales charges, odd-lot
differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage
accounts and securities transactions. Additionally, for assets outside of any wrap fee programs, clients may
incur brokerage commissions and transaction fees. Such charges, fees and commissions are exclusive of
and in addition to Acertus’ fee.
Acertus’ Agreement and the separate agreement with any Financial Institutions may authorize Acertus to
debit the client’s account for the amount of Acertus’ fee and to directly remit that management fee to
Acertus. In the alternative, where Acertus is acting as a sub-advisor, the primary adviser may debit the sub-
advisor or end-client account for the amount of Acertus’ fee and to directly remit that management fee to
Acertus. Any Financial Institutions recommended by Acertus have agreed to send a statement to the client,
at least quarterly, indicating all amounts disbursed from the account including the amount of management
fees paid directly to Acertus. Clients should carefully review the statements sent directly by the Financial
Institutions and compare them to those received from Acertus.
Fees for Management During Partial Quarters of Service
For the initial period of investment management services, the fees are calculated on a pro rata basis. The
Agreement between BIAS and the client will continue in effect until terminated by either party pursuant to
the terms of the Agreement. BIAS’s fees are prorated through the date of termination and any remaining
balance is charged or refunded to the client, as appropriate.
The Agreement between Acertus and the client will continue in effect until terminated by either party
pursuant to the terms of the Agreement. Acertus’ fees are prorated through the date of termination and any
remaining balance is charged or refunded to the client, as appropriate.
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Disclosure Brochure Acertus Capital Management, LLC
Separately managed account clients may make additions to and withdrawals from their account at any time,
subject to Acertus’ right to terminate an account. Additions may be in cash or securities provided that
Acertus reserves the right to liquidate any transferred securities or decline to accept particular securities
into a client’s account. Clients may withdraw account assets on notice to Acertus, subject to the usual and
customary securities settlement procedures. However, Acertus designs its portfolios as long-term
investments and the withdrawal of assets may impair the achievement of a client’s investment objectives.
Acertus may consult with its clients about the options and ramifications of transferring securities. However,
clients are advised that when transferred securities are liquidated, they are subject to market valuation and
may be exposed to transaction fees, fees assessed at the mutual fund level (i.e., contingent deferred sales
charge) and/or tax ramifications.
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