Item 5 Fees and Compensation:
Emerge earns compensation from distribution fees (paid monthly on an annualized rate) and from
investment management revenue as a percentage of the investment management fee earned by the
sub-advisor. For some distribution clients, Emerge will be a solicitor/introducer with all
appropriate disclosures. For other distribution clients, Emerge will be a solicitor and an
administrator of their strategies on other separate account platforms, and possibly on the Emerge
platform. This revenue also compensates Emerge for training and workshops to share knowledge
about the managers Emerge is distributing for.
Emerging managers may also hire Emerge for consulting services to help them develop a go-to-
market strategy; marketing collateral and or website modifications or development with a website
developer.
As a manager of managers for the Emerge platform, Emerge will notify custodians of billing
schedules authorized by its institutional clients. Fees are generally charged quarterly in advance.
Emerge will contract with sub-advisors and collect client fees through custodians with client
consent and then pay investment managers. This platform is currently in development. Emerge
will charge enough to compensate for development of program. This is generally 10-20 bps more
than the sub-advisory fee. All charges will be fully disclosed to investors.
As a portfolio manager, Emerge earns an investment management fee if the institutional account
participates in the Emerge platform of investment managers. The investment management fee is
generally 1.0% or less, depending on the number of mandates involved and complexity in
performance reporting.
Emerge may provide corporations and pension plans and non-profits with consulting and asset
allocation services. The fees for this service will range from .25%-1% depending on size and depth
of requirement.
Emerge Platform Standard Discretionary Investment Advisory fees:
Depending on client and account size will range from .25% to 1.00%, plus custody and trading.
In certain circumstances, fees may be negotiable based on account size and total number of
accounts.
A client agreement, other than distribution and administration clients, may generally be cancelled
at any time, by either party, for any reason upon receipt of 30 days written notice. Upon
termination of any account, any prepaid, unearned fees will be promptly refunded, and any
earned, unpaid fees will be due and payable. Clients may make a request for a refund in such
termination notice. The client has the right to terminate an agreement without penalty within five
business days after entering into the agreement.
All fees paid to us for investment advisory services are separate and distinct from the fees and
expenses charged by mutual funds, and ETFs. 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.
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The client may grant the firm the authority to receive quarterly payments directly from the client's
account held by an independent custodian. Accordingly, the client will provide, in writing,
limited authorization to withdraw the contractually agreed upon fees from the account. The
custodian of the account is advised in writing of the limitation on the firm's access to the account.
The custodian will also send to the client a statement, at least quarterly, indicating all the amounts
disbursed from the account including the amount of advisory fees paid directly to the firm.
The Emerge Investment Advisory fees are exclusive of brokerage commissions, transaction fees,
and other related costs and expenses which shall be incurred by the client. Clients may incur
certain charges imposed by custodians, brokers, third party investment and other third parties
such as fees charged by managers, custodial fees, deferred sales charges, odd-lot differentials,
transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage
accounts and securities transactions. Mutual funds and exchange traded funds 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 the Emerge platform fee and the fees charged by
any sub-advisors.
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