Saaga LLC

Item 5 – Fees and Compensation

How We Are Compensated
We offer two fee structures that are mutually agreed upon between each client and the Firm, based on
the specific scope of services to be provided. Fees are negotiable and may differ among clients based on
factors including but not limited to the scope and complexity of services to be provided, total assets under
management, and the overall client relationship. All fees are fully disclosed and documented in the
Investment Advisory Agreement, which must be executed by the client prior to the start of any services.
Any changes to the fee arrangement requires the mutual consent of both the client and the Firm and will
be properly documented.

1) Flat/Fixed Fee
Flat fees are determined on a case-by-case basis considering the complexity of the engagement, the time
commitment, and the specific deliverables to be provided. Fees are fully disclosed and mutually agreed
upon in writing before services begin. Fees of this type are typically invoiced monthly in arrears, meaning
Client is only billed after services have already been rendered for the applied period.
In the event the advisory relationship terminates prior to the end of a billing period, fees will be pro-rated
through the effective termination date. A final invoice will be issued for any earned but unbilled fees.
Since the client does not remit payment in advance, no prepaid amounts generally require refund.

2) Variable Asset-Based Advisory Fees (Portfolio Management)
This fee structure is typically proposed for clients seeking ongoing portfolio management where the fee
is aligned with the value of assets under management (“AUM”). It is generally recommended when clients
desire active, ongoing oversight of their investment accounts.
The annual fee is established as a percentage of the value of the client’s assets under management. The
Firm can offer to place an annual maximum (cap) on the total asset-based advisory fee charged to a client’s
account. If applicable both the fee and cap will be fully disclosed in the Investment Advisory Agreement

                                                   SAAGA, LLC
                                   1221 Brickell Ave, Suite 2410, Miami FL 33131
                                              Tel. +1 (786) 940-3505
                                              www.saagawealth.com                                           7

before services begin. The cap ensures that clients will not pay more than the stated maximum amount
in any calendar year, regardless of account growth, mid-year contributions, or other factors.
The Firm may offer tiered fee schedules with reduced rates as assets reach specified breakpoints. The
applicable schedule is fully disclosed in writing before services commence and may be negotiable based
on client-specific factors such as total relationship size.

How are asset-based fees calculated and billed?
These fees are typically calculated based on the ending value of assets under management (AUM) on the
last business day of the prior quarter. Clients are only billed after services have been provided; no fees
are billed in advance.
Single-rate structure:
If your agreement establishes a single annual fee rate applied to your assets under management at the
end of the previous quarter, we calculate your quarterly fee by applying your annual rate to that amount
and dividing it by four. The resulting figure represents the fee for the prior quarter, which is then invoiced
in arrears.
Tiered-rate structure:
If your agreement establishes more than one pricing tier the applicable fee rates are applied to your assets
under management at the end of the previous quarter in accordance with the tier structure. The fees
calculated for each tier are then added together to determine your total quarterly AUM-based fee for the
prior quarter, which is invoiced in arrears.
Adjustments for Contributions/Withdrawals
Because advisory fees are calculated based on the ending account value from the prior quarter, any
material additions or withdrawals of client assets that occur during such quarter may result in fees that
do not perfectly align with the average assets managed during the quarter.
To maintain fairness and avoid overbilling or underbilling:
•        Adjustments Timing: We review account activity at the end of each quarter. If significant inflows
or outflows occurred mid-quarter, the Firm will make an appropriate pro-rata adjustment in the next
billing cycle, so the client pays fees only on assets actually managed for the relevant period.
•       For new accounts opened mid-quarter or accounts terminated before quarter-end, advisory fees
are prorated based on the number of days the assets were under the Firm’s management during the
applicable billing period. This ensures that clients are only charged for the actual period of services
provided and are not billed for any time when assets were not under our management.
Termination & Final Billing:
If the advisory relationship terminates before the end of a billing period, advisory fees will be pro-rated
through the effective termination date based on the actual number of days assets were managed during
that period. A final invoice will then be issued for any fees earned but not yet billed, ensuring clients are
only charged for services provided up to the termination date.
                                                   SAAGA, LLC
                                   1221 Brickell Ave, Suite 2410, Miami FL 33131
                                              Tel. +1 (786) 940-3505
                                              www.saagawealth.com                                           8

No Performance-Based Fees:
We do not charge fees based on performance. If this ever changes, such fees would be offered only to
“qualified clients” as defined by Rule 205-3 and disclosed through an updated agreement and brochure.
Billing
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Item 7 – Types of Clients

SAAGA typically provides investment advisory and family office services to high-net-worth individuals and
their families.
We generally serve clients with total net worth exceeding $20 million. In exceptional cases, account
minimums are waived or negotiated.