2.4.0.8104 - Disclosure - Agreementstruefalsefalse1false falsefalsefrom-2013-01-01-to-2013-06-30.1090.0.0.0.0.0.0.0http://www.sec.gov/CIK0001482875duration2013-01-01T00:00:002013-06-30T00:00:001true 1fse_AgreementsAbstractfse_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse0Agreements [Abstract]2false 2fse_AgreementsNoteTextBlockfse_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalseterseLabel1falsefalsefalse00<div> <div> <table style="MARGIN-BOTTOM: 12pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-TOP: 0pt" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="TEXT-ALIGN: left; WIDTH: 0.45in"> (4)</td> <td style="WIDTH: 5pt"> </td> <td>Agreements</td> </tr> </table> (a)        Management Fee   The Fund pays the Managing Owner a management fee, monthly in arrears, in an amount equal to 0.75% per annum of the average daily NAV of the Fund (the "Management Fee"). The Management Fee is paid in consideration of the Managing Owner's advisory services to the Fund. From the Management Fee, the Managing Owner will be responsible for paying any license fee relating to the Index.   (b)       The Administrator, Transfer Agent and Custodian The Fund has appointed State Street Bank and Trust Company ("State Street"), a Massachusetts trust company, as the administrator (the "Administrator"), the transfer agent (the "Transfer Agent") and the custodian (the "Custodian") of the Fund and has entered into an Administration Agreement, a Transfer Agency and Service Agreement and a Custodian Agreement in connection therewith, respectively. The monthly fees for administrative and custody services are up to 0.0475% per annum of the average net assets of the Fund up to $200 million and 0.0225% thereafter, subject to an annual minimum fee of $32,500 for the first twelve months of the Fund's operations, $30,000 for the next 6 months and, effective September 1, 2012, $75,000 annually. Additionally, the Fund may pay the Transfer Agent approximately $13,500 per annum plus several additional and de minimis fees, as applicable.   (c)       The Distributor   Esposito Securities, LLC (the "Distributor"), an affiliate of the Managing Owner, provides certain distribution services to the Fund. Pursuant to the Distribution Services Agreement between the Managing Owner, the Fund and the Distributor, the Distributor assists the Managing Owner and the Fund with certain functions and duties relating to distribution and marketing services to the Fund, including reviewing and approving marketing materials and certain regulatory compliance matters. The Distributor also assists with the processing of creation and redemption orders.   Prior to January 1, 2013 an unaffiliated third party was providing substantially identical distribution services to the Fund.   The Distributor is paid an annual fee of $5,000 by the Fund and a monthly fee of up to 0.025% per annum of the Fund's average monthly net asset value subject to a $1,800 monthly minimum. The distribution fees amounted to $6,629 and $2,907 for the Three Months Ended June 30, 2013 and June 30, 2012, respectively, and $13,300 and $5,614 for the Six Months Ended June 30, 2013 and June 30, 2012, respectively, as disclosed in the Statements of Operations.   (d)        The Commodity Broker   Interactive Brokers LLC, a Connecticut limited liability company, serves as the Fund's clearing broker. The Commodity Broker is a member of Factor Advisors Holding Co., LLC. Factor Advisors Holding Co., LLC receives revenue payments from GENCAP Ventures, LLC, parent of the Managing Owner of the Fund. In its capacity as clearing broker, the Commodity Broker executes and clears the Fund's futures transactions and performs certain administrative services for the Fund.   The Fund pays respective brokerage commissions, including applicable exchange fees, National Futures Association ("NFA") fees, give-up fees, pit brokerage fees and other transaction related fees and expenses charged in connection with trading activities in U.S. Commodity Futures Trading Commission regulated investments. Brokerage commissions on futures contracts are recognized on a half-turn basis.   The brokerage commission and fees amounted to $247 and $286 for the Three Months Ended June 30, 2013 and June 30, 2012, respectively, and $514 and $604 for the Six Months Ended June 30, 2013 and June 30, 2012, respectively, as disclosed in the Statements of Operations.   (e)        ETF Service Provider, LLC   Pursuant to a service agreement dated October 25, 2012 between the Managing Owner and ETF Service Provider, LLC ("ESP"), an affiliate of the Managing Owner, the Managing Owner, on behalf of the Fund, has appointed ESP as the tax service provider as well as the Principal Financial Officer ("PFO") support service provider. ESP assists the Managing Owner with certain functions and duties such as the preparation and filing of the Quarterly and Annual regulatory reports filed with the Securities and Exchange Commission under PFO support services and K-1 processing and other tax return preparation services under tax service provider services.   Pursuant to a service agreement dated January 1, 2013 between the Managing Owner and ESP, the Managing Owner, on behalf of the Fund, has entered into an agreement for ESP to provide Chief Compliance Officer ("CCO") services to the Fund. For CCO services, ESP is paid an annual fee of $16,000 for 2013 by the Fund. The CCO services fee for 2012 was incurred by the Managing Owner and paid to an unaffiliated third party service provider.   For tax service provider services, ESP is paid an annual fee of $75,000 for 2013 and $50,000 for 2012 by the Fund. The tax return preparation fees amounted to $18,692 and $21,479 for the Three Months Ended June 30, 2013 and June 30, 2012, respectively, and $37,192 and $28,827 for the Six Months Ended June 30, 2013 and June 30, 2012, respectively, as disclosed in the Statements of Operations.   For PFO support services, ESP is paid an annual fee of $35,000 by the Fund. The PFO support services fees amounted to $9,034 and $4,600 for the Three Months Ended June 30, 2013 and June 30, 2012, respectively, and $17,454 and $6,000 for the Six Months Ended June 30, 2013 and June 30, 2012, respectively. The PFO support services fees for the Three Months Ended June 30, 2012 and the Six Months Ended June 30, 2012 were paid to an unaffiliated third party service provider.   The CCO service fees amounted to $4,052 and $-0- for the Three Months Ended June 30, 2013 and June 30, 2012, respectively, and $7,990 and $-0- for the Six Months Ended June 30, 2013 and June 30, 2012, respectively.   At June 30, 2013, the Fund has paid $75,000 to ESP for 2013 service fees payable for tax services. Of this amount, $37,808 is included in the Statement of Financial Condition as Prepaid Expense to Related Party at June 30, 2013. This amount is being amortized and charged to operations ratably throughout the year ending December 31, 2013.   (f)       The Trustee   Under the Amended and Restated Declaration of Trust and Trust Agreement (the "Trust Agreement"), Wilmington Trust Company, the Trustee of the Fund (the "Trustee") serves as the sole trustee of the Fund in the State of Delaware. The Trustee will accept service of legal process on the Fund in the State of Delaware and will make certain filings under the Delaware Statutory Trust Act. Under the Trust Agreement, the Managing Owner has the exclusive management and control of all aspects of the business of the Fund. The Trustee does not owe any other duties to the Fund, the Managing Owner or the Shareholders of the Fund. The Trustee has no duty or liability to supervise or monitor the performance of the Managing Owner, nor will the Trustee have any liability for the acts or omissions of the Managing Owner. The trustee fees amounted to $625 and $620 for the Three Months Ended June 30, 2013 and June 30, 2012, respectively, and $1,250 and $1,247 for the Six Months Ended June 30, 2013 and June 30, 2012, respectively, and are included in Other Expenses in the Statements of Operations.   (g)        Routine Offering, Operational, Administrative and Other Ordinary Expenses   The Fund pays all of the routine offering, operational, administrative and other ordinary expenses, including, but not limited to, accounting and computer services, the fees and expenses of the Trustee, Administrator, Custodian, Transfer Agent and Distributor, legal and accounting fees and expenses, tax return preparation expenses, filing fees, and printing, mailing and duplication costs. The routine offering, operational, administrative and other ordinary expenses amounted to $115,086 and $103,214 for the Three Months Ended June 30, 2013 and June 30, 2012, respectively, and $206,885 and $183,407 for the Six Months Ended June 30, 2013 and June 30, 2012, respectively.   (h)        Organizational and Offering Costs   Expenses incurred in connection with organizing the Fund and up to the offering of its Shares upon commencement of its investment operations on February 22, 2011, were paid by Factor Advisors, LLC without reimbursement. Accordingly, all such expenses are not reflected in the Statements of Operations. The Fund will bear the costs of its continuous offering of Shares and ongoing offering expenses. Such ongoing offering costs will be included as a portion of the Routine Offering, Operational, Administrative and Other Ordinary Expenses. These costs will include registration fees for regulatory agencies and all legal, accounting, printing and other expenses associated therewith. These costs will be accounted for as a deferred charge and thereafter amortized to expense over twelve months on a straight-line basis or a shorter period if warranted.   For the Three Months Ended June 30, 2013 and June 30, 2012, and for the Six Months Ended June 30, 2013 and June 30, 2012, the Fund did not incur any such expenses.   (i)        Extraordinary Fees and Expenses   The Fund will pay all extraordinary fees and expenses, if any. Extraordinary fees and expenses are non-recurring and unusual in nature, such as legal claims and liabilities, litigation costs or indemnification or other unanticipated expenses. Such extraordinary fees and expenses, by their nature, are unpredictable in terms of timing and amount. For the Three Months Ended June 30, 2013 and June 30, 2012, and for the Six Months Ended June 30, 2013 and June 30, 2012, the Fund did not incur any such expenses.   </div> </div>falsefalsefalsenonnum:textBlockItemTypenaAgreements Note [Text Block].No definition available.false0AgreementsfalseAgreementsUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://www.factorsharestbondbear.com/role/Agreements12