Item 5 – Fees and Compensation
The specific manner in which Fees are charged by Algonquin is established in a client’s written agreement with
Algonquin. The firm will generally bill its Fees on a quarterly basis based on the annual rate described in each
client’s written agreement with Algonquin. Clients are typically billed in advance each calendar quarter.
Accounts initiated or terminated during a calendar quarter will be charged a pro-rated Fee. Upon termination
of any account, any prepaid, unearned Fees will be promptly refunded, and any earned, unpaid Fees will be due
and payable. Clients could be subject to a minimum Fee. The clients’ margin balance is typically included when
calculating Algonquin's fees, where applicable. All Fees are subject to negotiation. Algonquin charges advisory
fees based upon the valuation of client account(s) as determined by its performance reporting vendor, Black
Diamond, and client custodians. The total portfolio value on which fees are based can vary from the value on
the custodian statement (the valuation could be higher or lower) due to such factors as the timing and posting
of dividends, settlement dates for trades, etc. Black Diamond generally relies on the prices provided directly
to it by account custodians. Custodians, in turn, generally rely on prices provided by reputable, independent
third parties. Clients are encouraged to compare the statements received from custodians with the vendor
performance statement.
Payment of fees can be paid directly to Algonquin by the client, or payment of fees can be made by the
independent custodian holding the client's investments. When payment is to be made by the custodian: (1) the
client provides written authorization permitting the Fees to be paid directly from the client's account held by
the custodian; (2) Algonquin provides the custodian the amount of the Fee and; (3) the custodian sends to the
client an account statement that shows all amounts disbursed from the client's account. The custodians used
in conjunction with Algonquin’s services are expected to send a statement to the client, at least quarterly,
indicating all amounts disbursed from the account, including the amount of management fees paid directly to
Algonquin. It is the client’s responsibility to verify the accuracy of the fee calculation. The custodian will not
determine whether the management fee is properly calculated.
If a client selects a Strategy offered by a Manager, Fund or Private Investment Vehicle that is not identified by
Algonquin, is not regularly reviewed by Algonquin, or had been previously reviewed and rejected by Algonquin
as an appropriate investment for the firm’s clients, the client will not receive the full range of services described
in their agreement with respect to that Strategy. Algonquin is not responsible for reviewing Strategies not
under regular review or for communicating any information about those Strategies to the client. A client will
generally pay the full Fee to Algonquin with respect to the accounts invested with Strategies that are not under
regular review, even though the client does not receive from Algonquin all of the services the client would
receive with respect to Strategies that are under Algonquin’s regular review. Before a client establishes an
account with a Manager, the client should receive a copy of the Manager’s written disclosure statement directly
from the Manager, specifying its Fees and services.
Certain Private Investment Vehicles are affiliated with Algonquin and Algonquin can receive compensation in
connection with those Private Investment Vehicles for its role as General Partner in the Private Investment
Vehicles. Algonquin is affiliated with several Private Investment Vehicles: Global Equity Access Fund, L.P., MAI
Wealth Private Equity Fund, L.P., Algonquin Special Opportunities Fund I, L.P., Algonquin Middle Market
Opportunities Fund, L.P., AMMOF Ltd. and AMMOF AIV, L.P. (together, the “Affiliated Funds”). Clients
understand that assets invested in Affiliated Funds are included in the Fee calculation and that clients will
receive no offset against the Fee, except as could be required by applicable law. (Further information can be
found in Item 8 – Methods of Analysis, Investment Strategies and Risk of Loss). Employees and their family-
related accounts can be charged a reduced fee, or no fee, for Algonquin’s services.
Algonquin’s Fees are exclusive of, and client shall be responsible for, all expenses incurred in connection with
the actual and potential investment by the account including: brokerage commissions, transaction fees, and
other related costs and expenses that shall be incurred by the client. Clients could incur certain charges that
include, but are not limited to: those imposed by custodians, brokers, third party Strategies (including any
management and incentive fees), Affiliated Funds , custodial fees, deferred sales charges, odd-lot differentials,
transfer taxes, wire transfer and electronic fund fees, account transfer fees, postage fees, auction fees, foreign
clearing fees and other fees and taxes on brokerage accounts, fees associated with certain securities (including
ADRs, GDRs, ETNs and REITs, for example), borrowing expenses and other costs of short sales, clearing and
settlement charges, interest on loans and debit balances, margin interest and all transfer taxes), expenses
related to proposed investments (whether they are consummated or not); investment-related travel expenses;
and securities transactions or other fees and taxes required by law. Funds also charge internal management
fees and some can have redemption charges which are disclosed in a fund’s prospectus and are ultimately borne
by clients as Fund shareholders, limited partners or as owners of the Fund. For more information regarding the
investment objectives, risks, charges and expenses of any specific investment product, clients should carefully
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