Item 5. Fees & Compensation
Separate Accounts
We charge an annual, asset-based fee, billed quarterly in arrears (the “Advisory Fee”). The fee is based on
the average daily balance as calculated and valued by your account custodian. Our fees are negotiable
depending on individual client circumstances; all clients do not pay the same fee. Our maximum Advisory
Fee is 0.9%.
We deduct our Advisory Fee directly from your account through the qualified custodian holding your funds
and securities. You authorize this Advisory Fee deduction through your written client agreement with us
and the account opening paperwork with your custodian.
While we take measures to ensure the Advisory Fees charged are accurate, we encourage you to review
your fees to ensure accuracy. In addition to any statements or reports we send you, you will receive
statements at least quarterly directly from your custodian that reflects all activity in the account, including
our fee. We strongly urge you to compare these statements for accuracy.
Titus Fund
The Titus Fund will ordinarily debit from each Investor’s capital account and pay to Avos a calendar
quarterly management fee (the “Management Fee”), in arrears, in an amount equal to 0.5% of the net
asset value of such Investor capital account as of the end of the relevant calendar quarter (approximately
2% annually).
Additionally, as of the end of each calendar quarter and as of any date on which a Member receives a
withdrawal or distribution from an Investor capital account, the Fund will ordinarily debit from each
applicable Investor capital account balance, and credit to the account of Avos, a special allocation of
profits (the “Incentive Allocation”) in an amount equal to twenty percent (20%) of the net new profit in
respect of such Investor capital account at such time.
ETF
Detailed information on the terms and conditions of fees payable by investors in the ETF are disclosed in
the ETF’s prospectus. Avos has discretionary responsibility to select the ETF’s investments in accordance
with the ETF’s investment objectives, policies, and restrictions. For its services, Avos receives a fee, which
is calculated daily and paid monthly, at the annual rate of 0.25% based on the ETF’s average daily net
assets as follows. In addition, Avos acts as the fund sponsor to the ETF. Under this arrangement, Avos has
agreed to provide financial support to the ETF and, in turn, the Primary Adviser has agreed to share with
Avos a portion of profits, if any, generated by the ETF’s total advisory fee. Every month, the ETF’s total
advisory fee, which is a unitary management fee, is calculated and paid to the Primary Adviser. If the
amount of the unitary management fee exceeds the ETF’s operating expenses and the Primary Adviser-
retained amount, the Primary Adviser pays the net total to Avos. The amount paid to the fund sponsor
represents both the sub-advisory fee and any remaining profits from the total ETF advisory fee. During
months in which there are no profits or the funds are not sufficient to cover the entire sub-advisory fee,
the sub-advisory fee is automatically waived.
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Other Fees
Separate Accounts
Third-party service provider fees are not included in our advisory fees described above. Our fees are
exclusive of custodial brokerage commissions, transaction fees, and other related costs and expenses
which you will incur. Examples of some of these expenses include custodial fees, odd-lot differentials,
interest on margin accounts, borrowing charges on securities sold short, transfer taxes, wire transfer and
electronic fund fees, or other fees and taxes on brokerage accounts and securities transactions.
In addition, in the event that a Separate Account invests in investment funds, including mutual funds and
ETFs, related or unrelated to Avos, such Client will bear multiple levels of fees, performance
compensation, costs, and expenses depending on the terms of such underlying investment fund.
Titus Fund
The Fund generally bears all costs and expenses associated with the offering of Interests and its ongoing
operations. The Fund’s direct and indirect operational costs and expenses are expected to consist
primarily of:
(i) Management Fees (discussed above);
(ii) direct operating costs and expenses, including custodial, administrative, legal, accounting,
auditing, record-keeping, appraisal, tax form preparation, compliance, and consulting costs
and expenses (including costs and expenses associated with obtaining systems and other
information designed to facilitate Fund accounting, record-keeping, data management, data
recovery, and custom software development, including related hardware and software);
(iii) fees, costs, and expenses of third-party service providers that provide such services (including
fees, costs, and expenses of attorneys retained by Avos to represent Avos in connection with
the business and affairs of the Fund, to the extent such fees, costs, and expenses relate to
advice provided to Avos by such attorneys with respect to such business and affairs);
(iv) insurance costs and expenses (including premiums for liability insurance covering the Fund and
other persons);
(v) bank service fees;
(vi) costs and expenses associated with the sales and marketing of Interests (including attendance
at investor conferences);
(vii) costs and expenses associated with preparing investor communications, including printing and
mailing costs;
(viii) fees and taxes imposed by any federal, state, local, or foreign government, governmental
agency, or regulatory body or self-regulatory organization, including licensing, filing,
registration, and exemption fees and withholding, transfer, and franchise taxes;
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