Kestra Investment Management LLC

Item 5 – Fees and Compensation

Kestra IM charges a management fee (“Manager Fee”) for its portfolio management services. The Manager
Fee is negotiated between Kestra IM and the Affiliated Professional and generally ranges from 0.00% to 0.50%
of the market value of the Portfolio.

For accounts custodied at Charles Schwab & Co. (“Schwab”), Kestra IM also charges a manager
administration fee (“Manager Administration Fee”) ranging from 0.00% to 0.05%. This fee covers trading,
technology, and administrative services associated with Portfolio implementation and oversight.

Manager Fees and Manager Administration Fees are separate from, and in addition to, any advisory, platform,
custodial, or fees charged by the client’s Advisor. Clients should review the disclosure documents and
advisory agreements provided by their Advisor for details regarding client costs and fee payment
arrangements.

Portfolio management fees are typically calculated based on the market value of assets under management
as of the last business day of each calendar month and are generally deducted in arrears from client
accounts by the custodian. Fees are prorated for partial billing periods when accounts are opened or
terminated mid-cycle and are reflected on the client’s custodian account statement.

Fee Waivers and Minimums
Kestra IM may establish account minimums for participation in certain Portfolios. These minimums are
generally set at the Portfolio level and may vary depending on investment strategy, custodian, or platform.
Kestra IM reserves the right, in its sole discretion, to waive or reduce account minimums or management fees
for certain clients or programs, including affiliated entities, large accounts, or legacy relationships. Such
waivers or reductions may result in similarly situated clients paying different fees for comparable services.

Third-Party Investment Advisers
In some cases, Kestra IM may hire an unaffiliated third-party investment adviser to provide recommendations
on asset allocation and/or security selection. When we do so, we have a financial incentive to increase our
Manager Fee to cover the cost of engaging the third-party adviser. While these arrangements can provide
additional expertise, they may increase the overall cost of the Portfolio.
In certain situations, Kestra IM may receive research or model recommendations from a third-party adviser at
no charge, provided that specific asset thresholds are maintained in Portfolios using the adviser’s
recommendations. In those cases, the third-party adviser may be compensated by product sponsors (for
example, mutual funds or ETFs). This arrangement creates a conflict of interest because Kestra IM has a
financial incentive to recommend or maintain Portfolios that meet those thresholds in order to avoid paying
separately for such services.

Additional Fees and Expenses
In addition to the fees described above, clients also bear the expenses of the underlying investments in their
Portfolios. Portfolios are typically invested in mutual funds and ETFs, which charge their own management
fees and operating expenses, as disclosed in each fund’s prospectus. These fund-level expenses are separate
from, and in addition to, the fees charged by Kestra IM and your Advisor.

Clients are also responsible for other account-related costs, which may include custodial fees, brokerage
commissions, transaction charges, wire or transfer fees, and other charges imposed by the custodian or
broker-dealer. Clients should carefully review their Advisor’s Form ADV and other account opening
documents for a complete description of all fees and expenses that may apply to their account.

Compensation for the Sale of Securities or Other Investment Products

Certain supervised persons of Kestra IM are also registered representatives of Kestra Investment Services,
LLC (Kestra IS), an affiliated securities broker-dealer. These individuals do not receive commissions or other
transaction-based compensation from the purchase or sale of securities in their capacity as representatives
of Kestra IM.

Item 7 – Types of Clients

Kestra IM provides investment management services primarily to affiliated or related investment advisers and
affiliated trust companies (“Affiliated Professionals”). The Affiliated Professionals, in turn, provide services to
their underlying clients. These clients may include individuals, individual retirement accounts (“IRAs”),
pension and profit-sharing plans, corporations and other business entities, trusts, estates, and charitable
organizations.

Minimum account sizes for portfolio management services generally range from $5,000 to $100,000,
depending on the Portfolio selected.