Item 5 Fees and Compensation
ADVISORY FEES
The following information describes how Eagle Equity is compensated for the advisory services
we provide to our individually managed clients and the Fund. The specific manner in which fees
are charged and the compensation we receive may differ between clients depending upon the
individual Engagement Agreement with each client. Eagle Equity reserves the right to negotiate
our compensation with clients depending on the scope of our advisory relationship, and we may
charge higher or lower fees than are available from other firms for comparable services. Eagle
Equity has the general discretion to waive all or a portion of our fees.
Investment Management Fees. In consideration for providing investment advisory services and
pursuant to the Engagement Agreement with a client, Eagle Equity charges an annual asset-based
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fee based on the client’s assets under management (“AUM”) as valued by the qualified custodian,
Interactive Brokers. Per the fee schedule provided below, assets within a given portfolio are
charged the applicable asset-based fee. To the extent that a client is invested in multiple portfolios,
the client can expect that Eagle Equity will assess the applicable asset-based fee based only on that
assets within each given portfolio.
For certain qualified clients who are eligible to invest in either our Emerging Opportunities
Strategy Portfolio or our Low Carbon Plus Strategy Portfolio, and if agreed upon in writing, Eagle
Equity may also charge a performance-based fee, outlined below. Our performance-based fee may
be subject to a loss carry-forward provision, also known as a “high water mark,” so that the
performance-based fee is only billed when the client’s account value at year end, measured on a
cumulative basis and net of any losses, exceeds the highest historic account value as of the end of
the prior calendar year. Performance-based fee arrangements are subject to specific negotiations
with the client and will be set forth in the Engagement Agreement with each particular client.
Fees may be negotiated with each client based on a variety of factors, such as the amount of assets
being managed, future deposits to the accounts under our management, the level and type of
services provided and/or the nature of the relationship with the client. Our standard fee rates are
provided below for each of Eagle Equity’s portfolios:
Portfolio and Fund Fee Schedule
Emerging Opportunities Strategy Portfolio • 2% of client AUM in this portfolio
(Open only to qualified clients) • 15% Performance Fee
Low Carbon Plus Strategy Portfolio • 2% of client AUM in this portfolio
(Open only to qualified clients) • 15% Performance Fee
For individually managed clients, Eagle Equity generally bills management fees on a monthly
basis in arrears. Eagle Equity generally bills performance-based fees at the end of each calendar
year or when a client makes a withdrawal. Clients must authorize the deduction of our fees from
their managed accounts by the qualified custodian, Interactive Brokers, and choose the method by
which our fees will be calculated. Clients may elect to have our advisory fees calculated by our
firm or Interactive Brokers and deducted from their accounts. The client makes this election when
applying for their account at Interactive Brokers or at any time or cancel the existing arrangement.
All fees will be supported by an invoice to the client itemizing the fee.
Additional Fees and Expenses. Clients will incur transaction charges and/or brokerage fees when
purchasing or selling securities. These charges and fees are typically imposed by the broker-dealer
or qualified custodian through which account transactions are executed. For more information on
our brokerage practices, please refer to Item 12 (Brokerage Practices) of this Brochure.
The fees that clients pay to our firm for investment advisory services are separate and distinct from
the fees and expenses charged by mutual funds and/or exchange traded funds (described in each
fund’s prospectus) to their shareholders. The fees charged directly by mutual funds and exchange
traded funds will typically include a management fee and other fund expenses.
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To fully understand the total costs associated with their investment portfolio, clients should review
all the fees charged by mutual funds, exchange traded funds, our firm and others.
Termination. The Engagement Agreement with our clients may be terminated by either party at
any time upon thirty (30) days written notice. Upon termination of our status as the client’s
investment adviser, Eagle Equity will not take any further action with respect to the client’s
account(s) unless specifically notified by the client in writing. Clients will be responsible for
instructing their custodian and monitoring their account for the final disposition of assets.
Refunds. Fees paid in advance are considered earned and non-refundable up to the effective date
of the termination of Engagement Agreement. Upon receipt of a proper notice of termination from
the client, as described in the Engagement Agreement, we will calculate a pro-rata refund for the
unearned portion (if any) of the fee. For clients that pay in arrears, any earned unpaid fees will be
billed on a pro-rata basis based on the amount of work performed by us up to the point of
termination.
Upon receipt of a proper notice of termination from the client, as described in the Engagement
Agreement, any earned unpaid fees will be billed on a pro-rata basis based on the amount of work
performed by us up to the point of termination.
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