Item 5: Fees and Compensation
Management Fees
The Firm charges each client a management fee. For the funds, these fees are based on the
Net Asset Value (“NAV”) of each class within a fund and are deducted from the portfolio on
a monthly basis.
The fee schedule for the funds varies from fund to fund and between asset classes in those
funds. A summary of the current fee schedule is set out below:
Fund Fee range
Alvento Long/Short Equity Fund Limited / 1.5% – 1.75 %
Alvento Long/Short Equity Fund LP per annum
Fees are payable in arrears and are charged only in respect of the period for which the fund
was managed.
Other fees
Other fees that may be charged to fund clients are set out below:
Administrator fees
Fees are charged on a sliding scale depending on the amount of assets managed. The
administrator will also be reimbursed any reasonable out-of-pocket expenses or costs
necessarily incurred in the performance of its duties.
Prime broker and custodian fees
Prime broker and custodian fees will not exceed normal commercial rates. They may also
levy transaction charges and other charges which can include Value Added Tax.
Other fees and expenses
Other fees and expenses charged may include the following:
The Fund bears its own expenses and its pro rata share of the Master Fund's expenses,
including the Management Fee; investment expenses (e.g., expenses that, in the Manager's or
the Investment Manager's discretion, are related to the investment of the Master Fund's
assets, whether or not such investments are consummated, such as brokerage commissions,
expenses relating to short sales, clearing and settlement charges, custodial and depositary
fees, bank service fees and interest expenses); investment related travel expenses (which are
travel expenses related to the purchase, sale or transmittal of the Master Fund's investments
incurred by the Manager or the Investment Manager); professional fees (including expenses
of consultants, investment bankers, attorneys, accountants and other experts) relating to
investments; research and market data (including any computer hardware and connectivity
hardware (e.g., telephone and fibre optic lines) incorporated into the cost of obtaining such
research and market data); administrative expenses (including fees and expenses of the
Administrator and other similar service providers); legal expenses; external accounting and
valuation expenses (including the cost of accounting software packages); audit and tax
preparation expenses; fees of the Directors; costs relating to directors' and officers' liability
insurance; costs of printing and mailing reports and notices; entity-level taxes; corporate
licensing; regulatory expenses (including filing fees); organisational expenses; expenses
Alvento Capital Partners LLP Form ADV Part 2A
incurred in maintaining the registered office; expenses incurred in connection with the
offering and sale of the Shares and other similar expenses related to the Fund;
indemnification expenses and extraordinary expenses.
Any expenses of the Fund and any other feeder fund(s) to the Master Fund (including,
without limitation, organisational expenses of the Fund and such other feeder fund(s) but
excluding the Management Fee and Investor Related Taxes (if any) of the Fund and any
equivalent fees or taxes payable by any other feeder fund(s)) may be paid by the Master Fund
and allocated to its feeder fund(s) pro rata based upon their relative ownership of the
Master Fund. Accordingly, the Fund may indirectly bear a portion of the expenses of other
feeder fund(s) to the Master Fund.
Except as otherwise provided in this Memorandum, any expenses directly or indirectly
borne by the Fund, other than the Management Fee and Investor Related Taxes (if any) or
any other expenses which the Board of Directors determines in its sole discretion should be
allocated to a particular Shareholder or Shareholders, will be shared on a pro rata basis by
all of the series of Shares. Any expenses attributable to a particular or series will be
allocated solely to such or series, including, without limitation, any costs of currency hedging.
To the extent that expenses to be borne by the Master Fund are paid by the Manager or the
Investment Manager, the Master Fund will reimburse such party for such expenses.
If any of the expenses listed above are incurred jointly for the account of the Master Fund
and any Other Accounts, such expenses will be allocated among the Master Fund and such
Other Accounts in proportion to the size of the investment made by each to which such
expense relates, or in such other manner as the Board of Directors considers fair and
equitable.
Certain of the Fund's organisational, re-organisational and offering expenses are, for
accounting purposes, being amortised for up to a 60-month period from commencement of
the Fund's operations. Amortisation of such expenses over a period that is up to 60 months
is a divergence from IFRS, which may, in certain circumstances, result in a qualification of the
Fund's and/or Master Fund's annual audited financial statements. In such instances, the
Board of Directors may decide to (i) avoid the qualification by causing the unamortised
expenses to be recognised or (ii) make IFRS conforming changes for financial reporting
purposes, but amortise expenses for purposes of calculating the Fund's and Master Fund's
Net Asset Value. There will be a divergence in the Fund's fiscal year-end net asset value and
in the net asset value reported in the Fund's financial statements in any year where, pursuant
to clause (ii), IFRS conforming changes are made only to the Fund's financial statements for
financial reporting purposes. If the Fund is terminated within 60 months of its
commencement, any unamortised expenses will be recognised. If a Shareholder redeems all
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