Item 5 Fees & Compensation
Custom Account Clients
Verger Capital receives an asset-based management fee as compensation for our investment advisory
services. We charge an investment management fee for Custom Account clients of 50-70 basis points
annually. However, we can negotiate the precise amount and form of payment (check, wire or deduct
from the custodial account) of each client's management fee, and the management fee differs among
Verger Capital clients. Management fees for Custom Accounts are payable quarterly in arrears.
The quarterly investment management fee is based on the Quarter Average Assets Under Management
("AUM") or Quarter Average Notional Exposure Under Management ("EUM"). AUM is calculated by
taking the net asset value of the aggregated assets as of the last business day of each month of the
relevant quarter and adjusting for cash flow activity (contributions and withdrawals) to calculate an
adjusted monthly total. Each adjusted monthly total for the quarter will be added together and divided
by three.
EUM is calculated by taking the total notional exposure as of the last business day of each month of the
relevant quarter and adjusting for investment activity affecting the total notional exposure of the portfolio
(purchases, sales, and expiration) to calculate an adjusted monthly total. Each adjusted monthly total
for the quarter is added together and divided by three.
Custom Accounts are billed directly for management fees.
On termination of services, Verger Capital is entitled to receive all fees and other monies accrued but
not yet paid on a pro-rata basis up to the termination date or withdrawal, as provided in the investment
management agreement.
Verger Funds
Each investor in the Verger Funds will bear certain expenses relating to its investment in the Funds.
Such expenses include, but are not limited to: legal, accounting, bookkeeping, tax compliance, auditing,
consulting and other professional expenses, including those of valuation firms, and expenses associated
with compliance with securities regulations; administration fees and other expenses charged by or
relating to the services of third-party providers of administration services, fees payable to sub-advisers,
including without limitation, through investments in pooled investment vehicles; third-party and out-of-
pocket research and market data expenses (including, without limitation, news, quotation, statistics and
pricing services; hardware, software, data bases and other technical and telecommunications services
and equipment used in the investment management and order management processes; and consulting
fees and travel expenses in connection with investigation and monitoring potential and existing
investments); bank service, custodial and similar fees; fees and expenses (including travel expenses)
related to the analysis, purchase or sale of securities, whether or not the investments are consummated;
expenses related to the purchase, monitoring, sale, settlement, custody or transfer of Fund assets
(directly or through trading affiliates); third-party and out-of-pocket fees and expenses relating to systems
and software used in connection with the operation of the Funds and investment related activities; fees
and expenses in connection with any advisory board or committee, entity-level taxes; fees and expenses
relating to the offer and sale of Interests (including, without limitation, organizational fees and expenses),
and filing and legal fees; costs and expenses incurred in connection with the dissolution, winding up or
termination of the Funds; costs and expenses incurred in connection with any meeting of the members
relating to the Funds, costs and expenses associated with an advisory or similar board or committee of
the Funds; expenses related to the Funds' indemnification obligations hereunder; reorganizational
expenses; such insurance, if any, as Verger Capital shall deem necessary or appropriate for the conduct
of the business of the Funds; and such other ordinary or extraordinary expenses associated with the
operation of the Funds and their investment activities as Verger Capital deems necessary or proper to
incur.
Verger Capital deducts its management fees directly from each investor's account in the Verger
Funds quarterly in arrears.
Non-Verger Fees
Clients of Verger may experience additional fees outside of Verger’s fees as described herein. Such
additional fees may include, but would not necessarily be limited to, fees charged by custodians,
broker-dealers, other investment managers, and investment-level fees.
Please see Item 12, “Brokerage Practices” for additional information regarding brokerage practices.
Note: Prospective Verger Fund investors are provided with offering documents before investing. We
encourage those investors to review the offering documents carefully to understand related expenses.
Additional Compensation
Supervised Persons of Verger Capital are Registered Representatives of an unaffiliated broker-dealer
and are eligible to receive transaction-based compensation in this role.