ITEM 5: FEES AND COMPENSATION
Investment management services are provided f or an asset -based f ee based on the f ollowing schedule of
account opening balances:
1. FEE STRUCTURE – Arctic Capital Advisors (ACA) FEE STRUCTURE Asset Value. Management f ee -
0.5-3%, Success f ee - 10-30%, One-time f ee 3%.
The annual f ee on all accounts is billed quarterly, in advance, based on the account’s net asset value on the
last day of the previous billing cycle, as ref lected in the electronic data transmitted to us by the custodian of
the account. In the event the Arctic Capital Advisor Agreement is executed, and the account f unded at any
time other than the f irst day of a calendar quarter, the advisory f ee is payable in proportion to the number of
days in the quarter f or which you are a client. “Net asset value” = long market value – short market value +
credit balance – debit balance + money market f und balance. In the event the client’s portf olio contains
securities f or which no readily market quotations exist, the value of such securities will be determined, f or
purposes of f ee computation, based on a quotation by an independent market maker or a specialist f or said
security.
Fees cover Arctic Capital’s investment advisory, reporting, and account-related services. All subadvisory
f ees are paid by Arctic Capital. Fees do not cover any execution-related expenses, commissions, and
margin interest, if any, securities exchange f ees, or o ther f ees required by law or charged by the broker-
dealer with custody of the account. Clients are responsible f or commissions, fees, and other charges, if any,
associated with such transactions and the maintenance of their account(s). Dif f erent f ee struc tures may be
available upon request. Arctic Capital will not enter into a contract that will charge an asset-based f ee of
more than 3% annually.
Financial Planning services are included in the above f ees.
On all of our accounts, we generally request that you provide authorization f or us to deduct our f ees directly
f rom your investment account. Following is important inf ormation about the deduction of management f ees:
• You must provide authorization f or us to deduct f ees by checking the appropriate section of our
contract.
• You will receive a detailed invoice each quarter which outlines our f ees and how they are calculated
at the same time we request payment f rom the custodian.
• You will receive a statement f rom your custodian which shows all transactions in your account,
including the deduction of our management f ees.
• You are responsible f or reviewing the accuracy of the f ees being billed, as the custodian will not do
so.
You may elect to pay by check rather than having payment deducted directly f rom your account.
You may terminate an advisory account by providing written notice. If an account is terminated bef ore the
last day of a calendar quarter, a pro -rata portion of the f ees shall be billed based on the number of days
expired in the calendar quarter.
Other Costs Involved
In addition to our advisory f ee shown above, you are responsible f or paying f ees associated with investing
f or your account. This pertains to all accounts except those participating in the wrap program. These f ees
include:
• mutual f und loads (if applicable). These charges are paid to brokers as a f orm of commission.
• mutual f und early redemption f ees if f unds are sold bef ore the end of the minimum holding period.
• management f ees f or ETFs and mutual f unds. These are f ees charged by the managers of the ETF
or mutual f und and are a portion of the expenses of the ETF or mutual f und.
• brokerage costs and transaction f ees f or any securities or f ixed income trades. These are generally
charged by your custodian and/or executing broker.
• Fees charged by af f iliated and unaf f iliated other investment managers that manage a portion of your
assets. These include f ees paid by private f unds that we may recommend to you.
Additional inf ormation about brokerage costs and services is provided i n “Item 12: Brokerage Practices.”
We believe the f ees mentioned above are competitive; however, you may be able to obtain similar services
f rom other sources at a lower price.
Clients of Arctic Capital may receive a recommendation to invest in the private f unds managed by af f iliated
investment managers. When a clients implement this recommendation, an af f iliate of Arctic Capital will
receive the customary f ees paid by the private f und. We do not discount our management f ees f or assets
invested in private f unds managed by af f iliates. Clients are under no obligation to implement these
recommendations.
Neither Arctic Capital nor any of our supervised persons accepts compensation f or the sale of securities or
other investment products f or accounts managed by Arctic Capital, including asset-based sales charges or
service f ees f rom the sale of mutual f unds.
As part of f inancial planning services, Arctic Capital will make recommendations to a client. When this
occurs, a conf lict of interest between the client and Arctic Capital. Arctic Capital and its owners will receive
the standard f ees f or managing the assets placed by the client under management with Arctic Capital and
f irms owned by af f iliated persons. Arctic Capital theref ore has an incentive to have the client place assets
with Arctic Capital and f irms af f iliated with Arctic Capital and its owners. Clients are under no obligation to
implement the f inancial plan or use Arctic Capital, its owners, or any af f iliated entities f or the
implementation.