ITEM 5 - FEES AND COMPENSATION
Continuous Capital calculates investment advisory fees based upon a percentage of the value of clients’
assets under management. The specific manner in which fees are charged by Continuous Capital is
established in a client’s written agreement with Continuous Capital. Depending upon the client’s type of
account, fees are generally charged monthly or quarterly in arrears. Continuous Capital does not require
prepayment of advisory fees.
For certain client accounts, advisory fees are prorated for contributions and withdrawals of assets made to
or from the account during the applicable period. Accounts initiated or terminated during a billing cycle
will be charged a prorated fee. An agreement with a separate account client may be terminated at any time
upon written notice pursuant to the terms of the agreement. Upon termination of any account, any earned,
unpaid fees will be due and payable to Continuous Capital.
Continuous Capital’s standard fee schedule for separate accounts is generally at the annual rate of 1.00%
of the first $50 million in average daily assets under management and 0.80% of average daily assets under
management over $50 million. The fees are calculated on a 365-day basis based on market value.
Continuous Capital may agree to lower or waive fee rates in certain circumstances, including situations
when: there is a likelihood of significant growth of assets in the account; the prospective client is in a new
industry or marketplace; or the client is an affiliate of Continuous Capital. A single client and its affiliates
with assets in more than one investment vehicle managed by Continuous Capital and/or its affiliates may
have its assets aggregated for fee calculation purposes and/or be charged a lower fee rate with respect to
assets maintained in one or more accounts.
Continuous Capital may send an invoice directly to the client for payment or to the custodian of the client
account for deduction from the client’s account. The custodian will deduct advisory fees only based upon
a written authorization from a client permitting the fees to be paid directly from the account. Clients
should receive from their custodian an account statement at least quarterly. Clients who have authorized
the automatic deduction of Continuous Capital’s advisory fees from their account should review the
custodial account statement for accuracy.
Additional Fees and Expenses
In addition to Continuous Capital’s fees, clients will incur brokerage commissions, dealer spreads,
transaction fees, ticket charges and other related costs and expenses in connection with transactions in
their accounts. See Item 12 below for more information about brokerage. Clients may also incur charges
imposed by custodians, broker-dealers, prime brokers, and other third parties that may include items such
as custodial fees, account maintenance fees, activity or inactivity fees, deferred sales charges, odd-lot
differentials, transfer taxes, wire transfer fees, electronic fund transfer fees, termination fees, postage and
handling charges, exchange fees, interest to cover short positions, and other fees and charges on accounts
or transactions. These fees, charges and/or commissions are exclusive of and in addition to the
management and other fees paid to Continuous Capital, and Continuous Capital will not receive any
portion of those charges.
Continuous Capital may invest or recommend investments in mutual funds or exchange-traded funds
including funds that are managed by Continuous Capital or one of its affiliates. Clients investing in mutual
funds or exchange-traded funds will also bear indirectly as fund shareholders their proportionate share of
the fund’s internal expenses, which include management fees paid to the fund’s adviser. These internal
fees and charges are known as the fund’s expense ratio. Each fund’s expense ratio will vary over time and
is disclosed in its prospectus. Continuous Capital does not receive sales charges from mutual funds or
exchange-traded funds as a result of recommending such securities.
To the extent that Continuous Capital invests client accounts in a mutual fund managed by Continuous
Capital, Continuous Capital will not charge its management fee on the amount invested to avoid
duplication of its management fee through the fund.