Item 5 – Fees and Compensation
Aberdeen’s advisory fees are negotiable, and generally vary depending on the services being provided
according to the schedule agreed to by the client and included in their investment management agreement.
Fee arrangements will vary by client, and are based on a number of different factors, including investment
mandate, services performed, and account size. Fees and allocations may be fixed, fixed plus performance or
performance only. Please refer to Item 6 of this Brochure for additional information about performance-
based fees. Generally, fees are paid monthly or quarterly in arrears based on assets outstanding at the close
of each month, quarter or the average of the month-ends within a quarter, or in advance based on assets
outstanding at the end of prior month or quarter. We will either invoice clients for these fees, or in certain
situations deduct these fees from the client’s custody account. In some instances, fee schedules are
negotiable and can vary depending on a variety of factors such as the client, size of the account, and the
investment strategy selected.
Aberdeen may also charge fees for Consulting Services at an hourly rate. The hourly fees are negotiable and
depend upon the needs of the client, complexity of the situation, and experience of the personnel providing
services under these arrangements.
We will not generally be required to provide notice to, or obtain the consent of, one client when waiving,
reducing or varying fees or modifying other contractual terms with any other client. However, some clients
may from time to time seek to negotiate most favored nation (“MFN”) clauses in their investment
management agreements with Aberdeen. These clauses may require us to notify the MFN client if we
subsequently enter into an investment management agreement with another client that offers more favorable
pricing or other contractual terms than those currently offered to the MFN client. The applicability of an
MFN clause will depend on the degree of similarity between clients, including the type of client, the scope of
investment discretion, reporting and other servicing requirements, the amount of assets under management,
the fee structure and the particular investment strategy (and therefore the relevant investment adviser)
selected by each client. We have sole discretion over whether or not to grant any MFN clause in all
circumstances.
All advisory arrangements may be terminated by either party upon prior written notice, according to the
termination provisions outlined in the investment management agreement. If a contract is terminated, all
advisory fees are subject to a pro-rata adjustment based upon the date of termination. Upon termination of
the agreement, any prepaid, unearned fee will be promptly refunded, and any earned, unpaid fees will be due
and payable.
For our standard segregated and/or commingled account fee schedules for U.S. clients and investors,
please refer to Appendix A of this brochure.
Registered Fund Fees
With respect to U.S. SEC registered open-end and closed-end funds advised or sub-advised by Aberdeen,
each fund’s prospectus sets forth the applicable fees and expenses. On an annual basis, each Registered
Fund’s Board of Directors/Trustees (the “Board”), including the independent Board members, considers
renewal of the Registered Fund’s investment management services agreement, including the advisory fee
paid by the Registered Fund to the investment manager. These fees are typically higher than the
representative fee schedules shown in Appendix A.
Because the Aberdeen U.S. SEC registered multi-asset funds (for purposes of this paragraph, each, a “Fund”
and collectively, the “Funds”) invest in other registered investment companies, each Fund will bear its
proportionate share of any management fees paid by a registered investment company in which the Funds
invest in addition to the advisory fee paid by the Fund to Aberdeen.
Sub-advised Mutual Funds and Other Pooled Vehicle Fees
We serve in a sub-advisory capacity for U.S. and offshore investment companies both registered and
unregistered that are managed by third parties. Fees for such services are negotiated with the manager, and
may be set forth in the fund’s registration statement or other similar offering document.
Collective Investment Trust Fees
We serve as investment adviser to Collective Investment Trusts (“CIT”) and receive a management fee from
the trustee for such services. The trustee fee rates paid by investors in these collective funds may be equal to,
exceed, or be lower than fees for other similarly managed products. Additionally, the trustee may separately
negotiate “side letters” with certain investors without applying terms negotiated with such investors,
including terms relating to fees, to all investors in the CIT in accordance with applicable law.
Wrap Programs
Aberdeen may participate in arrangements where it provides a model portfolio to clients but does not
exercise investment discretion or trade in the account, including, but not limited to, those with unified
managed accounts (“UMAs”) of Wrap Program Sponsors. Aberdeen’s actual fees, minimum fees, and
minimum account sizes may be negotiable, and in arrangements where it provides a model portfolio, may be
lower than those for providing investment advisory services where it has full discretion, depending on the
circumstances.
Payment of a bundled asset-based wrap fee may or may not produce accounting, bookkeeping, or income tax
results better than those resulting from the separate payment of securities commissions and other execution
costs on a trade-by-trade basis and advisory fees.
Clients should contact their program Sponsor for more information on the fees payable to Aberdeen in
connection with such program.
Private Equity Funds
Investors and prospective investors should review the confidential private placement memorandum, limited
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