ITEM 5. FEES AND COMPENSATION
How We Are Compensated for Our Advisory Services
Sub-Advisory Relationships with Third Party Money Managers:
We are paid a portion of the clients total investment advisory fee paid by the client to a third party
money manager. Fees paid to us by third party money manager are generally ongoing. All fees we
receive from third party money managers and the written separate disclosures made to clients
regarding these fees comply with applicable federal and state statutes and rules. It is the
responsibility of the third party money managers to provide their clients with the required written
disclosures, including a copy of their Form ADV Part 2, all relevant Brochures, a Solicitation
Disclosure Statement detailing the exact fees we are paid and a copy of their privacy policy.
Portfolio Management:
Assets under Management Annual Percentage of Assets Charge:
$0 to $250,000 1.250%
$250,000 to $500,000 0.80%
On the next $500,000 0.77%
On the next $2,000,000 0.64%
On the next $2,000,000 0.45%
On the next $5,000,000 0.375%
Amounts over $10,000,000 0.24%
1 Please note that our method for computing the amount of “client assets we manage” follows the method
outlined for Item 5.F in Part 1A of Form ADV. If we decide to use a different method at a later date to compute
“client assets we manage,” we must keep documentation describing the method we use and inform you of the
change. The amount of assets we manage may be disclosed by rounding to the nearest $100,000. Our “as of”
date must not be more than three months before the date we last updated our Brochure in response to Item
4.E of Form ADV Part 2A.
Our firm’s fees are billed on a pro-rata annualized basis quarterly in arrears based on the time-
weighted daily average of the previous quarter. Fees will be automatically deducted from your
managed account by a qualified Custodian. Your independent custodian sends statements at least
quarterly to you showing all disbursements for your account, including the amount of the advisory
fees paid to us.
Other Types of Fees and Expenses
Clients will incur transaction charges for trades executed in their accounts. These transaction fees
are separate from our fees and will be disclosed by the firm that the trades are executed through.
Also, clients will pay the following separately incurred expenses, which we do not receive any part
of: charges imposed directly by a mutual fund, index fund, or exchange traded fund which shall be
disclosed in the fund’s prospectus (i.e., fund management fees and other fund expenses). Forstrong
has also instituted a standard per account administration charge of $125 per annum if less than
$100,000 in value.
Terminations and Refunds
We charge our advisory fees quarterly in arrears. If you wish to terminate our services, you need to
contact us in writing and state that you wish to cancel your engagement with our firm. Upon receipt
of your letter of termination, we will proceed to close out your account and charge you a pro-rata
advisory fee(s) for services rendered up to the point of termination.
Commissionable Securities Sales
We do not sell securities for a commission.