ITEM 5 – FEES AND COMPENSATION
Artemis does not have a standardized fee schedule for its discretionary investment management
or sub-advisory services.
Generally, when it acts as the direct adviser to a Fund, Artemis will receive an annual
management fee (based on assets under management) and performance-based compensation
(based on the realized and unrealized profits earned by the Fund). Generally, Artemis receives a
management fee of 1% per annum of assets under management, payable monthly in arrears and
may receive a performance fee of up to 25% of certain Funds’ profits, payable annually in
arrears. When it acts as a sub-advisor to other Funds, Artemis generally will receive a portion of
the annual management fee paid monthly in arrears (calculated as a percentage of a Fund’s net
asset value) and performance-based compensation paid annually in arrears (based on the realized
and unrealized profits earned by the Fund) received by the general partner or other manager or
advisor to the Fund. Where Artemis acts as an advisor to a Fund and engages a sub-advisor to
advise the Fund, remuneration paid to such sub-advisor is deducted from the fee paid to Artemis.
Artemis may allocate client assets to an affiliated fund where the affiliated manager will receive
the fund’s management fee and performance based fee (if applicable).
The fees applicable to a Fund, including, as applicable, the total amount of annual management
fees and performance-based compensation paid by a Fund, and other materials regarding an
investment in a Fund are disclosed in the Memorandum for such Fund.
Underlying managers to whom Artemis may allocate client assets charge management fees
and/or performance-based compensation in addition to compensation charged by Artemis.
Generally, fees may be negotiable in the discretion of Artemis depending upon a variety of
factors including, among other things, type and extent of advisory service offered, amount of
assets under management, the overall relationship with the client or investor and other services
offered to the client or investor.
Advisory fees are prorated for partial periods. Each client has the right to terminate its advisory
agreement with Artemis upon written notice as set forth in such client’s advisory agreement.
Upon termination of any client account, any prepaid, unearned fees will be promptly refunded
and any earned, unpaid fees will be due and payable. Withdrawals or redemptions for an investor
are governed by the applicable Fund’s Memorandum.
Artemis’ fees do not include brokerage and transaction fees, costs and charges, and other related
costs and expenses that will be incurred by clients regarding the trading and maintenance of
client accounts. Clients may incur certain charges imposed by custodians, brokers and other third
parties such as commissions, custodial fees, and other fees and taxes on brokerage accounts and
securities transactions. Such charges, fees and commissions are exclusive of and in addition to
Artemis’ fee, and Artemis does not receive any portion of these commissions, fees, and costs.
Item 12 describes the factors that Artemis considers in selecting or recommending broker-dealers
for client transactions and determining the reasonableness of their compensation (e.g.,
commissions).