Item 5 — Fees and Compensation
The Fund: We do not charge a fee to manage the Fund. However, the Sub-Adviser is entitled to
receive an annual sub-advisory fee, paid by Aspiration — not the Fund — for advisory services
provided to the Fund, according to a formula based on the “Pay What Is Fair” fees that
Aspiration receives with respect to the Fund. In addition, Aspiration and the Sub-Adviser each
donate a portion of their respective fees to charity. Aspiration donates 10% of its earnings from
Pay What is Fair Fees after deducting the sub-advisory fee paid to the Sub-Adviser and the Sub-
Adviser donates 10% of its fees after receiving its fee from Aspiration. The fees paid to other
service providers by each Fund (e.g., custody, administration, transfer agent, accounting, legal,
etc.), are described in detail in the registration statement and/or financial filings of the Fund.
Those fees are accrued and deducted directly from the applicable Fund on a daily basis.
We have contractually agreed to reimburse the Fund’s expenses to the extent necessary to limit
the total annual fund operating expenses (exclusive of brokerage fees and commissions, acquired
fund fees and expenses, fees and expenses associated with investments in other collective
investment vehicles or derivative instruments, borrowing costs, taxes, or extraordinary expenses,
such as litigation and indemnification expenses) to 0.95% of the Fund’s average daily net assets.
To the extent the Fund incurs expenses in excess of 0.95% due to excluded expenses, the expense
ratio will be higher than 0.95%. The agreement to reimburse expenses is in effect for at least one
year from the date of the Fund’s prospectus and cannot be terminated by us before that date.
After that time period, we will determine whether to renew or revise the agreement. The
agreement at any time by a majority vote of the Board of Trustees who are not “interested
persons” of the Fund, as defined in the Investment Company Act of 1940, as amended (the “1940
Act”), or a majority vote of the outstanding voting securities of the Fund. Any fees or expenses
waived or reimbursed by Aspiration are subject to repayment by the Fund within the three fiscal
years following the fiscal year in which the expenses occurred if the Fund is able to make the
repayment without exceeding its then-current expense limit or the expense limit in place at the
time of the initial agreement.
The Fund incurs brokerage costs separate from the fees described above. Item 12 provides
additional details about our and the Sub-Adviser’s brokerage practices.
Individual Clients: We do not charge a set fee for client accounts. Instead, during the term of
our advisory relationship, each individual client (i) has the option to pay us based on the amount
of client assets that are invested in the Fund at a rate that he or she believes is fair (the “Advisory
Fee” or “Pay What is Fair Amount”), (ii) may increase or decrease the amount of the rate at any
time upon written notice to us, and the adjusted fee rate shall be deemed to have been in effect
since the first day of the quarter and (iii) is under no obligation to pay the Advisory Fee, as the
client can reduce the Advisory Fee to 0.00% on the last business day of the quarter.
Our quarterly fee, if any, is calculated by multiplying the Advisory Fee rate by the average
market value of all client assets that are invested in the Fund on the last business day of each
quarter, based on the Fund’s net asset value determined in accordance with the Fund’s
procedures. Currently, the Adviser is not collecting advisory fees while they await shareholder
approval on the Interim Advisory Contract with the Redwood Fund.
Clients may pay the Advisory Fee through an electronic funds transfer (“EFT”), or through
redemption of shares.
Individual clients also may be charged wire fees, returned check fees, and other fees by the
applicable Fund. Individual clients acknowledge that payment through redemption of shares may
generate capital gains that may be subject to tax.
Additional Compensation: We and our “supervised persons” (as defined in the Investment
Advisers Act of 1940, as amended) do not accept compensation, including sales charges or
service fees from the sale of mutual funds, from any person for the sale of securities or other
investment products. However, it should be noted that Aspiration Financial LLC, an affiliate of
Aspiration, offers the Aspiration Spend & Save Account, which is an interest-bearing cash
management account. The account is offered solely on Aspiration.com. The Aspiration Spend &
Save Account has a Pay What is Fair component, where customers choose the fee they believe is
fair to pay on a monthly basis. Aspiration Financial LLC also receives interest income and
interchange fees. Aspiration Partners, Inc. donates 10% of earnings from Pay What is Fair Fees
to charity. Aspiration does not receive any compensation related to the cash management
account.