Item 5: Fees and Compensation
Astor’s fees vary depending on factors, including but not limited to, the type of service provided, strategy,
and custodian.
Discretionary Accounts
The specific manner in which fees are calculated and charged by Astor is established in the Investment
Management Agreement signed by the client and Astor, in a written agreement between Astor and the
Sponsor Firm, or in a written agreement between Astor and another party such as another registered
investment adviser. There are two types of contractual agreements: dual and single contract.
In a “dual contract” relationship, you sign an agreement with both Astor and the Sponsor Firm. For these
relationships, Astor charges its management fee monthly in arrears. For the purposes of this Brochure,
the term “in arrears” means the fee will be calculated based on the market value of the account as of the
end of the billing period. Fees are calculated by Astor and an itemized invoice is sent to the custodian on
record for the applicable accounts.
In a “single contract” relationship, you will only sign an agreement with the Sponsor Firm, your investment
adviser, or a platform. Astor will maintain an agreement with this party that will detail the services to be
provided, fee structure, and other details. In this arrangement, the Sponsor Firm, investment adviser, or
platform are generally responsible for calculating Astor’s management fee. In certain arrangements, Astor
will calculate its management fee and send an invoice to the other party. Clients will pay fees in advance
or in arrears and monthly or quarterly depending on the terms of the agreement.
When Astor calculates fees, it will pro-rate its management fee based on the portion of the billing period
in which the client agreement is in effect if a client does not receive services for the full billing period. If
you are participating in a single contract arrangement, please review the agreement you signed with the
Sponsor Firm or platform to determine if fees are charged in advance and how you can receive a refund
of your pre-paid fee if the relationship is terminated prior to the end of a billing period.
Clients authorize their custodian to directly debit Astor’s management fee from their account. The
custodian then remits the fee to Astor. Clients can request to use an alternative billing arrangement, such
as being invoiced and making payment via check. This request must be in writing and approved by Astor.
Wrap fee program clients should also refer to the wrap fee program brochure for additional information
about what types of alternative billing arrangements are available for your program.
Wrap Fee Program Clients
In a wrap fee program, you will pay the Sponsor Firm an annual wrap fee that generally covers fees due
to the Sponsor Firm for items such as advisory services, transaction costs for trades executed through the
Sponsor Firm, custodial services, and reporting services. The Sponsor Firm pays Astor an annual fee
between 0.25% and 0.50% of the assets Astor manages under the program. Astor’s fee will vary
depending on items such as account size, strategy, and Sponsor Firm. You should consult the Sponsor
Firm’s brochure for additional information on the fees charged for the program.
Model Delivery Arrangements
Astor also receives a fee from third-parties when it provides model portfolio allocations to these parties as
part of a model delivery arrangement. The fee is specified in the applicable agreement with such parties
and ranges from 0.20% to 0.35% annually. Fees are calculated and charged monthly or quarterly in
advance or in arrears in accordance with the agreement in place by the platform or firm which receives
Astor’s model portfolio(s). The applicable portion of the fee is then remitted to Astor. Please review your
arrangement to determine if fees are charged in advance and how you can receive a refund of your pre-
paid fee if the relationship is terminated prior to the end of a billing period.
Investment Companies
Astor receives a management fee of 0.95% for advisory services provided to the Astor Funds.
Additionally, 12b-1 fees from the Astor Funds will be used to pay distribution expenses related to the
7 Astor Investment Management LLC – Form ADV Part 2
Funds. These expenses must be approved by the Funds’ distributor, Northern Lights Distributors, LLC.
Astor and its employees do not and cannot receive these fees as compensation. The 12b-1 fee ranges
from 0.25% to 1.00% depending on the share class. These fees are described further in the applicable
prospectus. Please visit www.astorimfunds.com or call 888-738-0333 to obtain a fund prospectus.
Astor does not purchase shares of the Astor Funds in client accounts. Your financial advisor will help you
determine whether the Astor Funds or participation in a SMA or UMA (either discretionary or through a
model delivery platform) is a more appropriate choice for you given your financial circumstances, risk
tolerance, and investment objectives.
Other Fees
Advisory fees payable to us do not include all the fees you will pay when we purchase or sell securities
for your account(s). The fees you will pay directly or indirectly to third-parties such as custodians, broker-
dealers, and funds include but are not limited to the following:
i. Transaction fees
ii. Exchange fees
iii. SEC fees
iv. Advisory fees and administrative fees charged by securities held
v. Custodial Fees
vi. Transfer taxes
vii. Wire transfer and electronic fund processing fees
viii. Commissions
ix. Mark-ups/Mark-downs
Astor seeks to achieve its investment objectives by purchasing ETFs which have embedded expenses.
As a shareholder, you bear these expenses through the net asset value of the ETF. These expenses are
separate from and in addition to the investment advisory fee Astor charges your account. You should
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