Item 5 – Fees and Compensation
Management Fee
In consideration for its services to the clients, Aspire Macro is entitled to a management fee measured
as a percentage of each client’s capital account balance, calculated daily or monthly and paid in arrears
(the “Management Fee”). The Management Fee is negotiated on an individual basis and ranges from
0.5% to 2%. The Management Fee is deducted directly from each client account. Upon termination
of an advisory agreement, Client shall receive a pro-rata refund of a portion of prepaid advisory fees,
if any that have yet to be earned. Such refund will be calculated from the date of receipt of the written
termination notice or other agreed upon date.
Performance Fees
Subject to certain terms and limitations disclosed in the investment management agreement, Aspire
Macro is entitled to receive performance based compensation from some client accounts (the
“Performance Fee”) in an amount equal to a pre-negotiated percentage of the net capital appreciation
of each client account (after taking into account expenses of each account, including any Management
Fees). The Performance Fee is payable quarterly after quarter‐end or at the time a client closes down
the account if before quarter‐end. The Performance Fee is subject to what is commonly known as a
“high water mark” with an 8 quarter look back. That is, if a client account underperforms during a
quarter, the net underperformance will be recorded and carried forward to future 8 quarters on a
rolling basis(such amount is referred to as the “Loss Carryforward”), and Aspire Macro will not receive
the Performance Fee for future quarters until the Loss Carryforward amount has been recovered (i.e.,
when the Loss Carryforward amount has been exceeded by the cumulative net outperformance in the
quarters following the Loss Carryforward). Once the Loss Carryforward has been recovered, the
Performance Fee shall be based on the excess net capital appreciation over the Loss Carryforward
amount, rather than on all net capital appreciation. The “high water mark” procedure prevents Aspire
Macro from receiving the Performance Fee for net capital appreciation that simply restores previous
underperformance and is intended to ensure that the Performance Fee is based on the long-term
performance of an account.
Other Expenses
Aspire Macro’s fees, as noted above, are exclusive of brokerage commissions, transaction fees,
underlying fund management fees and other related costs and expenses which shall be incurred by the
client. Clients may incur certain charges imposed by custodians, brokers, third party investments and
other third parties such as fees charged by managers, custodial fees, deferred sales charges, odd-lot
differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on
brokerage accounts and securities transactions. Such charges, fees and commissions are exclusive of
and in addition to Aspire Macro’s fees.