Item 5 Fees and Compensation
AC One charges an asset‐based fee for its investment advisory services. The fee arrangement,
termination, and refund policies are negotiated with each client and described the client’s advisory
agreement. In the case of The AC-ONE China Fund, this information will be in the prospectus and
Statement of Additional Information ("SAI").
AC One’s investment advisory fees are generally based on a percentage of assets under management.
The basic investment advisory fee for AC One is currently 1.05% (effective June 1, 2018) of assets under
management on an annual basis.
AC One may, from time to time, provide investment advisory services to institutional separate account
clients (“Institutional Accounts”). AC One's investment advisory fees for Institutional Accounts are
generally based upon a percentage of assets under management. The percentage typically depends
upon the type of investment mandate. The standard investment advisory fees AC One's charges for
different mandates for Institutional Accounts will range from 0.50% to 1.50%.
AC One fees are billed and payable quarterly in arrears, unless a client agrees otherwise, generally
based upon the average of the month‐end net assets for the quarter. Fees are negotiable.
AC One reserves the right, in its sole discretion, to negotiate and charge different advisory fees for
different accounts. Advisory fees may vary due to the inception date of a client's account, the initial or
potential size of the account, the entirety of the client's and its affiliates' relationship with the AC One
and account‐specific requirements such as non‐standard reporting obligations and compliance with laws
not generally applicable to AC One's activities. Accordingly, AC One may charge a higher or lower fee than
the standard fees set forth above.
In the event AC One's services are terminated, its fees are pro‐rated to the extent that its services have
been provided for less than the full quarter (or other billing period).
Institutional Accounts typically bear certain additional expenses other than investment advisory fees,
including custodial fees, brokerage costs, out‐of‐pocket costs for ERISA‐mandated fidelity bonds
(if applicable), or fees for plan administrator/Trustee‐directed special projects or reports. AC One
receives no payment or remuneration from institutional clients with respect to such other expenses
(except as described in Brokerage Practices), and any such charges, fees and commissions are exclusive
of and in addition to AC One's advisory fees. No portion of such charges, fees or commissions shall be
applied as an offset to reduce the amount of advisory fees owed by a client to AC One. In addition, when
institutional client assets are invested in a Mutual Fund or in an Exchange‐Traded Fund ("ETF"), the
client indirectly bears a prorated share of operating expenses incurred by the Mutual Fund or the ETF,
including without limitation, brokerage fees and transaction costs, transfer agency fees and custodial
expenses. These expenses are described in greater detail in the Prospectus and/or Statement of
Additional Information for the relevant Mutual Fund or ETF. Please refer to the Brokerage Practices
section of this brochure for a discussion of fees related to AC One's selection of brokers and order
allocation practices.