Item 5: Fees and Compensation
Compensation earned by the Firm for the provision of investment advisory services to
our Clients is generally comprised of management fees based on a percentage of capital
under management during the investment period. We do not charge Clients
performance based compensation. Fees and compensation are described within the
organizational and operating agreements for each Account that we manage or in each
investment advisory agreement between us and each Client.
Eligible Plans and Participants in the Trust pay investment advisory fees in the form of
a Trustee Fee (“Trustee Fee”), payable to the Trustee at an annual rate based upon the
value of each Eligible Plan and Participant’s investment in the Trust.
The Trustee Fee will be accrued daily at the annual rate prescribed for each Eligible
Plan and Participant and will be paid monthly in arrears from the assets of the applicable
Fund. The Trustee Fee is used by the Trustee to pay the operating costs of the Trust,
including, but not limited to, custody fees, annual audit-related expenses, tax filing fees,
transaction fees for Trust transactions via the NSCC systems, security pricing fees,
transfer agency manual trading, out-of-pocket and custom reporting services fees,
directly-charged intermediary retirement platform fees, expenses related to the
preparation of the Trust’s annual Form 5500 report, rating, data and security identifier
fees, SSAE 18 / SOC 1 costs and website hosting and maintenance fees (the “Trust
Operating Costs”). After payment of the Trust Operating Costs, the Trustee shall
deduct from the Trustee Fee be a “Trust Company Fee” which is an asset-based fee
calculated and accrued daily, and assessed monthly in arrears, and paid to the Trustee
for its services.
After deduction of Trust Operating Costs and the Trust Company Fee, the balance of
the Trustee Fees will be paid to the CRS for its advisory services. If the monthly
accrued value of the Trust Company Fees and the Fund Operating Costs exceeds the
CRS Investments LLC Form ADV Part 2A
value of the Trustee Fee, CRS is required to pay the Trustee the amount necessary to
cover the shortfall.
Sub-Adviser fees paid to Third Party Advisors are paid in accordance with the terms of
the sub-advisory agreements executed with each such Third Party Advisor. These fees
are generally based upon a percentage of assets invested in each Third Party Advisor’s
Fund and deducted directly from such Fund on a monthly basis.
Total fees charged to clients (including Trustee Fees and Sub-Adviser fees paid to Third
Party Advisors are expected to range from 40bps to 90bps, depending upon product
allocation and asset class selected by the client.
Fees may change over time and different fee schedules may apply to different types of
Clients, strategies and advisory arrangements. Under certain circumstances, fees may
be negotiated on a basis different from CRS’s stated fee schedules. In such cases, CRS
reserves the right to reduce the fees charged to a particular Client in its sole and absolute
discretion.
Although CRS has established the aforementioned fee schedule(s), we retain the
discretion to negotiate alternative fees on a Client-by-Client basis. Client facts,
circumstances and needs are considered in determining the fee schedule. These include
the complexity of the Client; assets to be placed under management; anticipated future
additional assets; related Funds; portfolio style; Fund composition; and reports, among
other factors. The specific annual fee schedule is identified in the contract between the
adviser and each Client.
Additional Fees and Expenses
As part of our investment advisory services to you, the Third Party Advisors may invest
in shares of unaffiliated investment companies (e.g. exchange traded funds, closed-end
or mutual funds companies, and unit investment trusts). The fees that you pay to our
Firm for investment advisory services are separate and distinct from the fees and
expenses charged by mutual funds or exchange traded funds (described in each fund's
prospectus) to their shareholders. These fees will generally include a management fee
and other fund expenses. You will also incur transaction charges and/or brokerage fees
when purchasing or selling securities. These charges and fees are typically imposed by
the broker-dealer or custodian through which your Account transactions are executed.
We do not share in any portion of the brokerage fees/transaction charges imposed by
the broker-dealer or custodian. To fully understand the total cost you will incur, you
should review all the fees charged by mutual funds, exchange traded funds, our Firm,
and others. For information on our brokerage practices, please refer to the "Brokerage
Practices" section of this Disclosure Brochure.
Any material conflicts of interest between you and our Firm or our employees are
disclosed in this Disclosure Brochure. If at any time additional material conflicts of
interest develop, we will provide you with written notification of the material conflicts
of interest or an updated Disclosure Brochure.
CRS Investments LLC Form ADV Part 2A