Alumina Investment Management LLC

Item 5: Fees and Compensation
We generally receive compensation from our clients based on either a percentage of the net asset
value of the account and/or a pre-negotiated fixed amount.

Fees are outlined in the client’s Investment Management Agreement and are generally negotiable.
We generally invoice investment management clients on a monthly or quarterly basis in arrears.

Our clients who receive consulting and analytical support services pay a pre-negotiated annual fixed
fee that is based on the costs associated with the services provided. The actual amount of the fee is
determined by assessing a number of factors including, but not limited to, the complexity of the
client, the size of the client, and the human costs associated with providing the services. The fee is
generally paid quarterly in arrears. In addition to the pre-negotiated annual fixed fee, some

Form ADV Part 2 Brochure | Alumina Investment Management, LLC

consulting agreements may allow for separate / additional fees related to special, larger scale type
projects that fall outside the scope of the work product outlined in the consulting agreement.

In addition to our compensation, clients may be responsible for the costs and expenses directly
related to portfolio investments or prospective investments, including brokerage commissions,
clearing and settlement charges, custody fees, interest on debt balances or borrowings, fees and
specific expenses incurred in obtaining, maintaining, or performing administrative services and out-
of-pocket costs for, accounting, audit, operational, administration, secretarial and legal expenses.
Clients should review their individual Investment Management Agreements (“IMAs”) for details
regarding each client’s specific expense arrangement with Alumina.

Either party may terminate the engagement in accordance with the terms of the investment
management/consulting agreement. The client is responsible to pay for services rendered until the
termination of the agreement. Any unearned fees will be refunded to the client on a prorated basis.

Item 7: Types of Clients
Alumina primarily provides customized investment management services to large institutional
clients such as insurance companies, banking institutions, and REITs. This includes advisory
services to insurance trusts / vehicles offered by such institutional clients. Alumina generally has a
minimum account size of $25 million.