CS Advisors Inc

FEES AND COMPENSATION (Item 5)
 Basic Fee Schedule

  •   1.00% of Assets on the first $2,000,000
  •   .75% of Assets on the next $2,000,000
  •   .50% of Assets on all additional amounts

CS Advisors also has the ability to charge clients on an hourly basis, flat fee and subscription
fee. Our hourly fees range from $275 to $500. Our 401(k) fees range from .15% to .50%
depending upon the services provided.

Asset-based fees are charged quarterly and are calculated on an account's asset value as of the
last business day of the quarter for services provided the previous quarter. Valuations used in
advisory fee calculations are based on the custodian’s valuation or other independent third-party
performance-reporting vendor. At CS Advisors’ discretion, fees may be negated or reduced
depending on the amount of assets under management or other factors. However, no specific
ranges or fee terms have been established for accounts subject to negotiated fees. In most
cases, advisory fees are deducted directly from clients’ assets. We may provide advisory
services at a reduced fee for employee and employee family-related accounts.

The Investment Management Agreement provides us with written authorization to deduct
advisory fees from the client’s custodian account. Our advisory fees will be reflected in the client’s
custodian account statements. We request that clients carefully review their custodian account
statements and inform us of any errors or discrepancies.

Although having more assets in your advisory account, including cash, will benefit you in that
you may be eligible for a lower advisory fee, but will also benefit us through increased fees. We
therefore have an incentive to increase the assets in your account in order to increase our fees.
You pay our fee quarterly, even if we do not buy or sell securities during the billing period. An
asset-based fee may cost more than a transaction-based fee, but you may prefer an asset-based
fee if you want continuing advice or want someone to make investment decisions for you.
Although CS Advisors believes that our fees are competitive with other investment advisors,
comparable services may be available elsewhere for lower fees.

CS Advisors’ fees are exclusive of transaction fees, and other related costs and expenses.
Clients may incur certain charges imposed by custodians, brokers, or other third-party parties.
These include custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire
transfer and electronic fund fees, and other fees, taxes and expenses charged on brokerage
accounts and securities transactions.

If we use independent third-party managers, the fees charged to CS Advisors’ clients by third-
party managers depend on several factors, including the size and type of the investment, trading

strategy, maturity, and degree of risk. Independent Third-party managers may charge
performance fees on realized or unrealized gains in their portfolio. Please refer to the third-party
manager’s Forms ADV, for additional information.

CS Advisors does not receive fees or commissions for recommending any securities, or
investments, or a particular third-party manager. CS Advisors does not receive any portion of
fees, commissions or other charges from third party managers, brokers, or other service
providers.

In addition to all other fees and expenses incurred in the management of an advisory account,
client accounts that margin strategies will also incur interest charges. For accounts that use
margin, although the account statements may reflect a negative amount for the margined
securities, our advisory fees are based on the absolute market value of the securities. This poses
a conflict of interest. We manage this risk through disclosure so that clients can make an informed
decision and through policies and procedures that require us to act in the client’s best interest.
The clients’ margin balance is typically included when calculating Firm 's fees. Clients should note
that they may already be paying margin interest on these same assets.

Mutual funds and exchange traded funds (“ETFs”) also charge internal management fees, which
are disclosed in a fund’s prospectus. Such charges, fees and commissions are exclusive of and
in addition to CS Advisors fee, and CS Advisors shall not receive any portion of these
commissions, fees, and costs. CS Advisors’ policy is to offer clients the lowest available share
class taking into consideration transaction fees.

CS Advisors’ policy is to offer clients funds with the lowest cost and most favorable share class
based on the client’s individual needs. Mutual fund companies generally offer multiple share
classes of the same fund. Share classes are described in the mutual fund's prospectus. Each
share class charges different fees and internal expenses. Depending on the share class selected,
fees and internal expenses charges may be higher or lower. Certain funds do not charge a
transaction fee but have higher internal expenses. Selecting funds that charge higher fees and
expenses may adversely impact an account’s long-term performance.

You will pay your proportionate share of the mutual fund’s management and administrative fees
and sales charges, as set forth in the mutual fund prospectus. Such advisory fees are
compensation to the mutual fund manager and are not shared with CS Advisors.

CS Advisors ’s policy is to recommend that clients invest in the lowest cost share class available
based on the client’s individual needs. CS Advisors usually recommends institutional or advisor
share classes that typically have the lowest expense ratios and are more beneficial than other
share classes. Institutional or Advisor share classes are usually available to investors in qualified
fee-based advisor programs, or accounts that meet certain minimum investment requirements.

When deemed appropriate for a client’s specific situation, your Investment Advisor
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TYPES OF CLIENTS (Item 7)

CS Advisors Inc. provides portfolio management services to individuals, high net worth
individuals, business owners, corporate pension and profit-sharing plans, partnerships,
charitable institutions, foundations, endowments, private investment funds and trusts. We
generally require a minimum of $250,000.

METHODS OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS (Item 8)

Our portfolios begin with creating strategic asset allocations. The strategic allocations for each
portfolio have different risk/return profiles. Portfolios are designed to be well diversified and meet
different investment objectives.

The Strategic Asset Allocation can be thought of as the baseline long-term asset allocation for
each portfolio. This gives us a frame of reference to design tactical portfolios to enhance the risk/
reward characteristics of our portfolios.

Asset Allocation Process

The first step in our Asset Allocation Process is to establish a strategic (long-term) asset
allocation for each portfolio. We believe that at the core of building a diversified and efficient
portfolio is Modern Portfolio Theory (“MPT”). According to MPT, it's possible to construct an
"efficient frontier" of optimal portfolios offering the maximum possible expected return for a given
level of risk. We utilize the expected return, correlations, and standard deviation of various asset
classes in an effort to design the most efficient growth and income portfolio. We employ
constraints on the efficient frontier to build diversified portfolios.

Building Blocks

The first step is to determine the type of Investment categories then further break that down into
asset classes and investments in constructing portfolios.

Below is a list of some Investment Categories we utilize.
   • US Equities
   • International Equities
   • US Taxable and Tax-Exempt Bonds
   • Non-US Bonds
   • Real Assets (Commodities, Real Estate etc.)
   • Alternative Multi-Alternative, Managed Futures etc.)

These broad investment categories can be further broken down into asset classes and then sub
asset classes that can be used to create a more efficient portfolio. For example, international
equities would include international developed markets and emerging market equities.

Strategic Asset Allocation

We use a variety of factors and models to assist our decision-making process of when and how
to make adjustments to our strategic asset allocation. We are rigorous with the implementation of
allocation adjustments with our strategic asset allocation process. The Strategic portfolios are
rebalanced systematically to help ensure alignment with strategic limits.

Tactical Asset Allocation

Our tactical strategy is based on technical factors in an effort to remove emotional bias: The
primary factors that are used to overlay a strategic allocation are trend following price and
momentum factors.

Some of our models utilize options with the underlying ETFs as part of our tactical asset allocation.

Tactical Strategies and Trend Following

CS Advisors utilizes tactical investment strategies for certain client portfolios. Tactical strategies
involve adjusting portfolio allocations in response to changing market conditions and differ from
traditional buy-and-hold approaches.

One tactical approach employed by CS Advisors is trend following.

Trend following is a rules-based investment approach that seeks to participate in sustained market
trends while reducing exposure during periods of unfavorable market conditions. The strategy is
based on quantitative indicators derived from historical price data, such as price momentum or
moving averages, to assess whether an asset or asset class is exhibiting a positive, negative, or
neutral trend.

When indicators suggest favorable trends, portfolios may increase exposure to growth-oriented
assets. When trends weaken or turn negative, portfolios may reduce exposure, shift to defensive
assets, or allocate partially or fully to cash or cash-equivalent investments.

Trend-following strategies are typically implemented using ETFs, mutual funds, or other publicly
traded securities that provide exposure to broad asset classes, including equities, fixed income,
real assets, and cash equivalents. Portfolio allocations are generally reviewed and adjusted
periodically.

Risks and Limitations

Tactical and trend-following strategies involve risks and limitations, including:

Whipsaw Risk: Periods of volatile or range-bound markets may result in underperformance due
to frequent changes in positioning.
Lag Risk: Trend indicators are backward-looking and may result in delayed responses to market
changes.
Underperformance Risk: Tactical strategies may underperform buy-and-hold approaches during
strong, sustained market advances.
Model Risk: Quantitative models are based on historical data and assumptions that may not
persist in future market conditions.
Tax Risk: Increased trading may result in higher transaction costs and greater realization of
taxable gains in non-qualified accounts.

There can be no assurance that tactical or trend-following strategies will achieve their intended
objectives or outperform other investment approaches.

Client Considerations

Tactical and trend-following strategies may not be suitable for all clients. CS Advisors considers
a client’s objectives, risk tolerance, time horizon, and tax circumstances when determining
whether these strategies are appropriate.

Custom Options - CS Advisors provides customized solutions for clients that desire exposure to
a specific asset class with defined outcomes.

Material Risks
CS Advisors seeks to implement investment strategies that are designed to minimize potential
losses, but there can be no assurance that these strategies will be successful, particularly in the
short term. Clients may lose all or a substantial portion of their assets. Investment performance of
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