Item 5 - FEES AND COMPENSATION
Investment Management Fees
Approximately 100% of our revenue is generated from advisory fees. Our advisory fees are generally
based on a percentage of assets under management and exclude costs that may be imposed by your
custodian, broker-dealer, and other third-party managers.
FCM Mutual Fund Fees
The advisory fee FCM receives for serving as advisor to the Cannabis Growth ETF is 0.65%. Please
see the Cannabis Growth ETF’s Prospectus for all fee details.
FCM Separately Managed Account Fees
The standard fee schedule for all of FCM’s products is as follows:
For accounts under $50,000,000 – 0.85%
For accounts $50,000,001 to $100,000,000 – 0.75%
Accounts greater than $100,000,000 – 0.65%
The investment management fees are payable quarterly in arrears, based upon the market value
of the assets on the last day of the previous quarter as valued by the Custodian.
We generally require a minimum of $25,000 for investment management services. Fees may be
discounted or negotiated at our discretion. We may accept smaller accounts at our discretion but may
require a minimum fee on such accounts. Smaller accounts are more difficult to diversify and often
do not have the same number of securities as larger accounts in the same strategies. In addition, the
fees as a percentage of assets under management will be higher than other clients. For investments
that do not have a readily available market value, FCM may calculate its investment management fee
based on the initial cost of the investments. In our discretion, FCM may waive the account
minimum and/or charge a lower management fee based on various criteria (i.e. anticipated
future additional assets, dollar amount of assets to be managed, related accounts, account
composition, negotiations with client, etc.).
Upon signing our Investment Management Agreement, the client authorizes the custodian to deduct
the Investment Management Fee from their Account(s) and remit the same to FCM pursuant to
its invoice. We will send a quarterly invoice to the Custodian setting forth the amount of the
investment management fee that is due for the quarter, and the investment management fees are
directly deducted from the client’s account(s). The custodian shall not be required to verify the
Advisor’s calculation of the management fee. To satisfy the payment of the management fee, funds
will be deducted directly from the Account(s), and if necessary, from liquidating holdings in the
following order: (a) cash positions: (b) money market funds, or (c) current positions in the Account.
It should be noted that some mutual funds and securities that are purchased and sold for the
Account may have transaction fees, commissions, and/or redemption fees that will be charged to
the client. These transaction fees, etc. are not shared with FCM and are paid directly to the
broker/dealer or custodian.
All fees paid to FCM are separate and distinct from other fees the client may pay, including
transaction fees, short term trading fees, underlying mutual fund fees and expenses paid to the
fund by shareholders of the fund as outlined in fund's prospectus, and custodial fees. In addition,
clients may pay brokerage and transaction fees, commissions, transfer taxes, exchange fees, and any
other charges that may be imposed with regard to the client’s brokerage account.
Termination of Investment Management Services
A client may terminate FCM’s Investment Management Agreement at any time by giving written
notice to FCM or its Advisor at least thirty (30) days prior to the date of termination (the
“Termination Date”). Effective on the Termination Date, the Advisor shall refrain, without
liability, from taking any further action with respect to the Account. FCM will cease to be entitled
to receive fees for any period following the Termination Date.
The client will have immediate access to the assets in his or her account(s), subject to any
restrictions imposed by the broker/dealer or custodian of the accounts. Termination of FCM’s
Investment Management Agreement shall not affect either (a) the validity of any action taken by the
Advisor pursuant to the Agreement, or (b) the liabilities and obligations of the parties with respect
to any transactions effected prior to the Termination Date.
Commission Business
We do not provide services based on brokerage commissions. Clients who wish to invest in security
products through FCM will maintain accounts with IB or other broker/dealers.
H ow is the potential risk of conflict of interest mitigated?
As a fiduciary, FCM is obligated to serve the client’s best interest in all dealings and potential conflicts
of interest are mitigated by our adherence to our Code of Ethics.
Brokerage and Custodian Transaction Fees
All security transactions placed with FCM’s clearing agent IB are executed through the
broker/dealers clearing firm. Advisory fees charged by FCM are separate and distinct from
other fees the client may pay including but not limited to:
• Transaction fees such as ticket charges paid to the clearing agent or custodian
• Ticket Charges for transactions in Managed Accounts sponsored by the broker/dealer
• Commissions, if applicable
• Inactivity Fees
• Custodial fees for overnight mail, wire orders, checks returned for insufficient funds
for those clients with check writing privileges
• Precious Metal Storage Fees
• Custodial maintenance and termination fees for IRA’s
• Limited Partnerships & Private Placement Fees
• Other service fees under special circumstances