Item 5 Fees and Compensation
The Funds
As mentioned in Item 4, Arabesque is currently advising two UCITS Funds, each with a sub portfolio which
pursues Arabesque’s Systematic Strategy and Arabesque’s SGE Strategy. The Funds are not offered in the US,
and are only available to eligible non-US persons. The UCITS Fund employs the following strategies in its sub-
funds:
Arabesque Systematic Strategy (Long-only Alpha) (the “Arabesque Systematic
Strategy”): a UCITS fund, charging between 0.82% p.a. and 1.22% p.a. depending on minimum
investment sizes based on the NAV.
Sustainable Global Equity (Long-only Alpha) (the “SGE Strategy”): a UCITS fund,
charging a fund management fee of 0.72% p.a.
The management fees for the UCITS Funds are calculated on a pro rata basis for each monthly period in which
an investor holds shares, and are billed in arrears at the end of each month. Value added taxes shall be added to
these fees as applicable.
Other Fund Fees and Expenses
Each of the current UCITS Funds, and by virtue of their investment, the investors, are also subject to their
share of any broker commissions, transaction fees, and other transaction costs arising in connection with the
purchase and sale of assets, as well as the following expenses, provided they arise in connection with the
management of the Funds’ assets: management fee to the Manager of the Funds, custodial, transfer agent,
administration, sales agent fees, costs incurred in relation to the acquisition, holding and disposal of assets, in
particular customary bank charges for securities transactions and transactions involving other assets and rights
of the Funds, and the safeguarding of such assets and rights, as well as customary bank charges for the
safeguarding of foreign investment units abroad; all external administration and custody fees, which are charged
by other correspondent banks and/or clearing agencies for the assets of each Fund, as well as all foreign
settlement, dispatch, transaction, all fees incurred in connection with the securities transactions of each UCITS
Fund in units of other UCITS or UCI; the transaction costs for the issue and redemption of bearer shares; taxes
levied on the Funds’ or the Funds’ assets, income and expenses that are charged to the respective Fund; costs of
legal advice incurred by the Funds, Arabesque, the Manager, or the depository, if incurred in the interests of the
shareholders of the respective Fund; costs of the auditors of the Funds; costs for the creation, preparation,
storage, publication, printing, and dispatch of all documents required by the Funds; the administrative fees
payable for the Funds to all relevant authorities, in particular the administrative fees of the Luxembourg and
other supervisory authorities, and also the fees for the filing of documents of the Funds; costs in connection
with any admissions to listing on stock exchanges; advertising costs and costs incurred directly in connection
with the offer and sale of shares; remuneration, expenses, and other costs of foreign paying agents, the sales
agents and other agents that must be appointed abroad, that are incurred in connection with the Fund assets;
expenses of a possible investment committee; any duties and expenditures of the Board of Directors of the
Funds; costs connected with the formation of the Funds and/or the individual Funds and the initial issue of
shares; further management costs including associations' costs; costs of ascertaining the split of the investment
result into its success factors (known as performance attribution); and costs for credit rating of the UCITS
Funds by nationally and internationally recognized rating agencies.
In addition, costs incurred for the founding of the UCITS Funds and the initial issue of shares will be amortized
over the first five financial years against the assets of the UCITS Funds existing at the time of formation. The
set-up costs and the aforementioned costs that are not directly attributable to a specific UCITS Fund shall be
allocated to the respective UCITS Fund assets on a pro rata basis. Costs incurred as a result of the launching of
additional UCITS Funds will be amortized over a period of a maximum of five financial years after launch
against of the assets of the sub-fund to which these costs can be attributed.
Prospective, eligible (non-US) investors should consult the relevant UCITS Funds’ prospectus for a complete
listing and description of all fees and expenses charged to the Fund.
Segregated Mandates
Arabesque offers advisory services on a segregated mandate basis. The fees for a segregated mandate client are
negotiable on a client by client basis, and will depend on the size of the investment and the complexity of the
mandate, among other factors. All fees payable to Arabesque and any third-party costs will be outlined in the
investment management agreement with each client.
The management fees charged to segregated mandates are calculated and billed in accordance with the
provisions of the relevant investment management agreement.
The management fee may, in the sole discretion of Arabesque, be waived, reduced, or rebated with respect to
certain clients or investors. For additional information regarding our brokerage practices, please see Item 12 of
this brochure.