Easterly Funds LLC

Item 5.         Fees and Compensation

Easterly charges management fees to its clients for its investment management &
consulting services.

Mutual Funds

The Mutual Funds’ fee schedules are set forth in their respective prospectuses.

Interested investors must refer to the applicable prospectus for important information
regarding fees, expenses, and additional information. Prospective investors should
carefully review the prospectus before making any investment.

Model Portfolio Management Services

The fees Easterly charges and receives for providing Model Portfolio Management
Services generally are asset-based fees that are paid quarterly by, or through, an Overlay
Manager, and are generally in the range of 7 - 10 basis points (0.07% - 0.10%) of the total
assets (or a portion of the assets) invested by the Overlay Manager in the Overlay
Manager’s investment strategy derived from our Model Portfolios. The fee rate for Model
Portfolios that permit allocations to the Mutual Funds are reduced proportionally to avoid
double charging of advisory fees by Easterly.

Easterly’s fees typically may be negotiated only between the Overlay Manager and
Easterly. A client of the Overlay Manager typically pays an advisory fee to the Overlay
Manager for the Overlay Manager’s discretionary management. In such cases, the client
does not pay a separate fee to Easterly for the Model Portfolio Management Services we
provide to the Overlay Manager. Easterly receives from the Overlay Manager a portion of
the fees paid by the Overlay Manager’s client for our services. Easterly is not generally
informed of the specific fee arrangements negotiated between each Overlay Manager and
the Overlay Manager’s clients.

Easterly’s fee for Model Portfolio Management Services may either be payable by the
Overlay Managers in arrears at or after the end of each quarter for services rendered
during the quarter (in which case they are not refundable) or payable in advance of the
quarter in which such services are to be rendered. If paid in advance, the Overlay
Manager would receive a pro-rated refund in the event that Easterly is terminated. The
Overlay Manager also may pro rate fees if a certain amount of assets are contributed to or
withdrawn from a client’s account during an applicable period. In any case, any refunding
would take place as and when provided in the Overlay Manager’s agreement with
Easterly.

Clients of an Overlay Manager or Platform Provider should reference their agreements
with, and related documentation from, the Overlay Manager or Platform Provider (as
applicable) for the specific terms and conditions applicable in connection with the
refunding of fees charged by the Overlay Manager or Platform Provider.

GENERAL INFORMATION:

Personal Investments: Certain executive officers and/or other employees of Easterly
Funds can invest a portion of their personal net worth in one or more of the Mutual Funds.

Termination: An investor can withdraw all or any part of its investment from any of the
Mutual Funds as set forth in the applicable Mutual Fund’s Prospectus.

Other Fees and Expenses: All fees paid to Easterly Funds for investment advisory services
are separate and distinct from the fees and expenses charged by mutual funds, ETFs and
ETNs to their shareholders. In the case of mutual funds, these fees and expenses are
described in each fund's prospectus. These fees will generally include a management fee,
other fund expenses, and a possible distribution fee. If the fund also imposes sales charges, a
client could be subject to pay an initial or deferred sales charge.

General: Clients should note that similar advisory services could be available from other
investment advisers for similar or lower fees.

Prospective investors in the Mutual Funds should refer to the appropriate Fund
Prospectus for additional important information, terms, conditions, and risks involved
with investing in the Mutual Fund.

Item 7.           Types of Clients

Easterly Funds provides discretionary advisory services to registered investment
companies, and non-discretionary advisory services to other investment advisers in
connection with the Model Portfolio Management Services.