Bustamante & Co.

Tranche-Based Fee.

BUSTAMANTE & CO LLC DISCLOSURES

HYPOTHETICAL INFORMATION
within this presentation and all matters of Bustamante & Co.s website, there may material which contains certain hypothetical
performance and portfolio information. No representation is made about the hypothetical portfolios or their suitability or potential
benefits for any client or investor and no advice or recommendation is given with respect to such hypothetical portfolios which are
included for illustration purposes only. The hypothetical portfolios do not represent actual client or investment accounts.
Hypothetical information, including hypothetical performance results, have many inherent limitations. Theyre generally prepared
with the benefit of hindsight, may not involve financial risk or reflect actual trading or asset allocations for a portfolio and therefore
do not impact that economic and market factors may have had on the managers or investment advisors decisions for that portfolio.
If fact, there are frequently sharp differences between hypothetical results and the actual record subsequently achieved. No
presentation is made that such portfolios performance would have been the same as such hypothetical results had the portfolio
been in existence during such time.

HISTORICAL INFORMATION
Historical performance results for investment indices and/or categories may have been provided for general comparison purposes
only, and generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment
management fee, nor the impact of taxes incurred, of which would have the effect of decreasing historical performance results. It
should not be assumed that your account holding do or correspond directly with any comparative indices.

How
Bustamante
& Co. Gets Paid.
We charge 3.25% annually that
is broken down into 3
tranches. The latter two
tranches are contingent on us
meeting key metrics or else
clients dont pay us.

We believe that clients who

work with us demand results
when it comes to asset
management and financial
planning. That is why we dont
get paid unless we perform for
clients. Bustamante & Co. is
the ONLY FIRM IN AZ that
incorporates tranche-based
fee planning while everyone
else gets paid regardless of
(lack of) results generated on
behalf of clients.

Tranche Based Fee Planning

Tranche 1 0.60%

Build & Implement

Modular Plan.
Implement Virtual
Firm technology
with client.
Financially educate
client on portfolio
selection and its
relation to their
financial goals.

Tranche 2 1.40%

4 month activation
of Tranche 2.
Portfolio returns
must be in the
comparative band
net of tranche 2 fee.
Client had at least 1
review and listened
in on EOM call.
Client has option to
stop at the
comparative band.*

Tranche 3 2%

Activated only when

Tranche 2 has been
paid out.
Portfolio has reached
optimal band net of
Tranche 3 fee.
Client has had at least
1 comprehensive
review with firm since
T2 was paid out to the
firm.
Client has completed a
modular slide.

Portfolio Life
(Tranche 1)

(Tranche 3)

Up front 60bps on starting

equity.

Optimal band reached net of

200 bps T3 Fee. 90% of
portfolio goes to (FIT)

(Tranche 2) 4+ months

Fixed Income Transfer

comparative band reached net

of 140 bps T2 fee. Client has
option to lock in return.

Portfolio is moved to a 90%

/10% fixed allocation until
advisory anniversary date.

1.70%

A Comparison
Breakdown of up front
expense ratio,
management fees, or
wrap fees from other
investment vehicles.

0.64%
0.60%

Hedge Funds

Mutual Funds

Sources:
Hedge Funds: https://www.preqin.com
Mutual Funds: Morningstar 2015 fee study

Bustamante
& Co.
Asset-weighted
expense ratio

14.70%
**

Performance Fee
Breakdown of Performance Fees.
Performance fees are contingent on
beating an underlying index while also
adding alpha premium.
Sources:

3.40%*

Hedge Funds: https://www.preqin.com

* Wrap fee is our annual 4% broken down into
2 tranches. T2/T3 wrap fee is based on
starting principal not mark-to-market equity
base.

Hedge Funds

Bustamante
& Co.

** Performance is paid out on the profits on

principal

Mutual Funds