Item 5 - Fees & Compensation
The Adviser receives compensation for providing advisory services depending on the manner in which they are
provided.
Separately Managed Accounts (SMAs)
Large Cap Value Strategies
First $25mm 70bps
Next $25mm 60bps
Balance 50bps
Fees for SMAs are negotiable for all discretionary account strategies. The Adviser, in its sole discretion, may
negotiate a lesser management fee or minimum account size due to a variety of factors such as anticipated future
earning capacity, anticipated future additional assets, dollar amount of assets to be managed, related accounts,
account composition, pre-existing relationship with client, account retention, pro bono activities, etc. The advisory
fees charged and the manner and frequency they will be calculated will be disclosed in the Investment
Management Agreement signed by the Client and the Adviser. Clients authorize the Adviser to debit advisory
fees directly from their accounts.
Separately managed accounts may incur certain charges imposed by custodians and other third parties which
may include charges imposed directly by a mutual fund or exchange traded fund in the account, which shall be
disclosed in the fund’s prospectus (e.g., fund management fees and other fund expenses), deferred sales
charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, custodial fees, and other fees
and taxes on brokerage accounts and securities transactions. Additionally, clients may incur brokerage
commissions and transaction costs. Such charges, fees and commissions are exclusive of and in addition to the
advisory fee.
See “Brokerage Practices” below for additional information.
Non-Discretionary Accounts
We generally charge a fee of 0.5% to monitor non-discretionary Standard Service SMAs and provide
recommendations and 0.1% to monitor non-discretionary Limited Service SMAs and provide recommendations on
a much more limited basis than for the Standard Service Accounts. Often the Limited Service Accounts are legacy
and/or inherited portfolios where the client is specifically seeking very low portfolio activity and the focus is much
more on monitoring for expected long-term holding periods. In certain circumstances, this fee is negotiable. The
Adviser does not assess this fee against cash or cash equivalents in non-discretionary accounts.
Mutual Funds
The Adviser may recommend or allocate the Mutual Funds to certain advisory clients or within certain investment
models. In these instances, we waive the client’s account management fee for the portion of assets invested in
the Mutual Funds. The client pays the fees, expenses and charges associated with the Mutual Funds, custodian
or other third parties. Please refer to the prospectus and statement of additional information (“SAI”) for information
about the fees and expenses associated with the Mutual Funds. These documents are available at
www.axsinvestments.com.
Private Fund
In return for our service as Investment Manager to the Private Fund, we receive a management fee based on
each limited partner’s share of the Private Fund’s net asset value. The management fee is payable quarterly in
advance, calculated as of the last day of the prior calendar quarter. Additionally, the Private Funds General
Partner, which is the Adviser, may earn an annual performance allocation based on the Private Fund attaining
certain performance metrics. All Private Fund fees and expenses are established by the Private Fund’s governing
documents (the “Fund Agreements”) and are described in the Private Fund’s offering memorandum
(“Memorandum”).
Limited partners in the Private Fund, like investors in other private investment funds, may be limited in their ability
to terminate their participation in the pooled investment vehicle. Those limits are set out in the Memorandum,
which should be read carefully. Lower fees for comparable services may be available from other sources.