Item 5: Fees and Compensation
Fees are negotiable, and individual arrangements are based on Client specific factors, including, but not
limited to, assets under management and the risk/return parameters of the investment. Boggess Asset
Management offers fee arrangements which vary by strategy and may involve management fees
(generally a percentage of assets), performance fees (generally a percentage of profits) or some
combination of the two.
For new Client relationships, Boggess Asset Management’s standard minimum fee is 2% of the client’s
assets under management (annualized) which is $40,000 on a $2,000,000 minimum investment for its
Momentum, Total Return, Risk Parity, SVO Insurance, and Private Investment strategies. Boggess Asset
Management funds may invest in other Boggess Asset Management funds. In such cases, there is no
layering of fees.
In addition to external investors, investments in Boggess Asset Management funds may be made by
certain employees and officers of Boggess Asset Management (including members of the portfolio
management team and other senior employees, or entities formed for investment purposes by such
employees and officers for their own benefit). Such officers and employees will generally not be charged
management fees or profit participation fees but will be subject to the same rights and obligations,
including redemption rights, expenses and transaction costs, as those of the other investors.
Boggess Asset Management manages all investments through commingled fund vehicles and single
investor funds. In the latter case of single investor funds, in addition to the fees stated above, there may be
additional fees borne by investors, such as auditor fees, custodian fees, back and middle office fees,
regulatory and legal expenses (including class action and collective claim recovery and administration
fees), transaction expenses (including brokerage fees), and government filing fees. Investors may be
charged additional fees by their service providers, such as a fee from a bank to wire money. Boggess
Asset Management funds also bear the cost of certain organizational, administrative, offering and other
expenses as set forth below.
In addition to the fees and expenses referred to above, each fund will bear all of its ongoing offering
expenses (including in some cases initial organizational expenses, which may be amortized over 12-36
months). Each fund will also bear all of its ongoing operating and other expenses. The expenses incurred
by each fund are expected to include, without limitation: the fund’s investment expenses (e.g., expenses
which the fund determines to be related to the investment of the assets of the fund, expenses relating to
short sales, clearing and settlement charges, custodial fees and expenses (including initial costs associated
with the establishment of custodial, settlement agency or other service provider relationships), costs of
entering into trading documentation, expenses relating to reorganizations, restructurings and workouts
involving the fund’s investments, bank service fees, interest expenses, borrowing costs and extraordinary
expenses); professional fees (including, without limitation, fees and expenses of consultants, experts and
outside counsel) relating to investments; fees relating to trade confirmation, trade settlement (including,
without limitation, overdraft charges or fees incurred in the normal course of trading), margin and
collateral management and reconciliation of trades and holdings; costs relating to the organizational and
offering documents and subscription agreements and any modification to, or supplement of, such
documents, and any distribution of such documentation to investors considering making an additional
investment in the fund and prospective investors; expenses attributable to currency conversions; legal fees
and expenses; accounting, auditing, and tax preparation fees and expenses; administration fees and
expenses; expenses of other agents of the fund (including, without limitation, expenses of a “tax matters
partner” or “partnership representative” of the fund); director fees (including any reasonable travel,
Part 2A of Form ADV: Uniform Application for Investment Advisor Registration Page: 6
accommodation, or other expenses incurred in carrying out their duties as directors); taxes, governmental
fees and similar amounts; printing and mailing expenses; fees and out-of-pocket expenses of any service
company retained to provide accounting, middle/back-office services, bookkeeping, reconciliation, data
aggregation, trade processing, reporting, monitoring, quality control (including shadow services), class
action and collective claim recovery and administration services or other services to the fund or Boggess
Asset Management relating to the fund, including, without limitation, any service provider assisting the
fund and/or Boggess Asset Management (whether on behalf of itself or on behalf of the fund) in
connection with their respective regulatory, legal and/or compliance obligations; insurance premiums;
compliance fees; extraordinary expenses, including, without limitation: costs incurred in connection with
any litigation, government investigation, or dispute in connection with the business of the fund, and the
amount of any judgment or settlement paid in connection therewith, or the enforcement of the fund’s
rights against any person; costs and expenses for indemnification or contribution payable by the fund to
any person; and all costs and expenses incurred as a result of the reorganization, dissolution, winding-up
or termination of the fund. Any of the foregoing expenses may be paid directly by a fund or by its trading
company on behalf of the fund. Each fund may reimburse Boggess Asset Management in respect of any
of the foregoing expenses incurred by Boggess Asset Management on behalf of, or in respect of, the fund.
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