Item 5 – Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for the Advisor’s investment
management services.
A. Fees for Advisory Services
Private Fund Services
Each Fund pays the Advisor fees for its services as the manager to the Fund. Fees are paid at the end of each
month, pursuant to the terms of the Offering Documents for each Fund. Fees are based on the market value of
assets under management and are charged at an annual rate of 0.12%. The Fee includes the investment
management services of the Advisor as well as a portion of the operating costs of the Funds. The Fund investors
bear the costs for legal, administration, accounting, audit and operations fees up to 0.03% of Fund assets, and the
Advisor bears any excess costs.
In the first month of service, an investor’s pro-rata share of the Fund’s management fees is prorated from the
subscription date to the end of the first month. All securities held in the Funds managed by Elm Partners will be
independently valued by the Administrator. Elm Partners will not have the authority or responsibility to value
portfolio securities. For more detailed information on the fees and compensation received by the Advisor,
please refer to the respective Fund’s Offering Documents.
Investment Company Services
Elm Partners Management receives a Management Fee of 0.20% as the advisor to an ETF. In addition to the
management fee, there are acquired fund fees and expenses of 0.04%. Acquired Fund Fees and Expenses
(“AFFE”) are the indirect costs of investing in other investment companies and are estimated for the Fund’s
current fiscal year. The fund’s expense ratio is 0.24%. For more detailed information on the fees and
compensation received by the Advisor, please refer to the respective Fund Prospectus and Statement of
Additional Information (SAI) which can be obtained free of charge on the Fund’s website or by inquiry.
Managed Account Investment Program
The fee for Clients participating in the Managed Account Investment Program is 0.12% annually based on the
assets under management with the Advisor. Fees are billed at the end of each month, based on the average daily
market value over the month. The investment management fee in the first month of service is prorated from the
inception date of the account[s] to the end of the first month. All securities held in accounts managed by Elm
Partners will be independently valued by the Custodian. The Advisor will conduct periodic reviews of the
Custodian’s valuations. At the Advisor’s discretion, certain complex accounts will be subject to a $1,000 account
set-up fee.
The Advisor’s fee is exclusive of, and in addition to, brokerage fees, transaction fees, mutual fund/ETF expenses
and other related costs and expenses, which may be incurred. However, the Advisor shall not receive any portion of
these commissions, fees, and costs.
Elm Lifetime Investing & Spending Analysis Service
Elm Partners typically offers the Elm Lifetime Investing & Spending Analysis Service for a fixed engagement fee of
$5,000 per engagement. Fees may be negotiable based on the nature and complexity of the services to be provided
and the overall relationship with the Advisor. An estimate for total costs will be determined prior to engaging for
these services.
Fees for Extraordinary Client Requests
Elm Partners may determine that certain Client requests be assessed for a fee if such requests fall significantly
outside of the Advisor’s typical practices or will take a material amount of effort. In the case that Elm Partners
determines a request be considered an Extraordinary Client Request subject to additional fees, the Client shall be
notified of this determination along with the additional fees to be incurred prior to the Advisor’s completion of the
request. Elm Partners does not maintain a set fee for Extraordinary Client Requests and will instead assess such
fee on an individual request basis.
B. Fee Billing
Private Fund Services
Investment management fees will be calculated and automatically deducted from the Funds by the Administrator on
behalf of the Advisor. The amount due is calculated by applying the monthly rate (annual rate divided by 12) to the
total assets under management with Elm Partners at the end of each month. Details of the fee methodology are
contained in the private placement memorandum for each Fund.
Investment Company Services
Investment management fees will be calculated monthly and automatically deducted from the Fund by the
Administrator on behalf of the Advisor. The amount due is calculated by applying the effective management fee
rate to the total assets under management with Elm Partners at the end of each month. Details on fees and fund
operating expenses are contained in the Prospectus for each Fund and can be obtained free of charge by visiting
the fund website or by request.
Managed Account Investment Program
Clients participating in the Managed Account Investment Program will be billed at the end of each month. The
amount due is calculated by applying the monthly rate (annual rate divided by 12) to the average assets under
management with Elm Partners over the relevant month. Details of the fee methodology are contained in the
investment management agreement.
Elm Lifetime Investing & Spending Analysis Service
Fees for the Elm Lifetime Investing & Spending Analysis Service are invoiced by the Advisor and are due upon
completion of the agreed upon deliverable[s]. Clients may also elect to have the fee for this service deducted from
their Elm Wealth separately managed account (SMA).
Fees for Extraordinary Client Requests
Fees for the Extraordinary Client Requests are invoiced by the Advisor and are due upon completion of the agreed
upon request[s].
C. Other Fees and Expenses
Investors may incur certain fees or charges imposed by third parties, other than Elm Partners, in connection with
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