Item 5 Fees and Compensation
ADVISORY FEES AND OTHER FEES AND EXPENSES
Barclays’ advisory fees are generally negotiable. Consequently, a client may pay a different fee than the
standard fees described below.
The BWAS Funds
Barclays is paid a management fee by each BWAS Fund based on the net asset value of such fund, as
described in the offering document for each fund. The amount of the management fee varies by fund and
may also vary by class of interest within a particular fund. Additionally, Barclays, in its capacity as investment
adviser to the BWAS Funds, may in its sole discretion, waive, rebate, reduce or calculate differently all or a
portion of the management fee attributable to any investor in a BWAS Fund.
If a client invests in a BWAS Fund as part of its Investment Philosophy Portfolio Multiple Accounts (“IPPMA”)
Program relationship with Barclays, the client will pay a reduced management fee intended to approximate
the annual fee rate payable to the BWAS Manager for its services.
The management fee payable by each BWAS Fund is deducted and paid to Barclays quarterly in arrears.
The Portfolio Management Program (Options Overlay Strategies)
Barclays is paid a management fee from each Portfolio Management client invested in the Options Overlay
Strategy. This management fee is calculated as a percentage of the mandate amount, after that amount is
adjusted for gains or losses in the account during the billing period. The “mandate amount” is the value at
which we manage a client’s account. It determines the maximum number of short option positions in the
account (either calls or puts, but not both). The annual program fee rate applying to a client’s account is
based on the value of the client’s mandate amount (which depends on the Collateral Account’s margin value)
at the time the client initially invests in the Program. The standard fee schedule is set forth below:
Initial Mandate Maximum Annual
Amount Program Fee Rate
US$ 2.5m < 5m 0.95%
US$ 5m < 10m 0.85%
US$ 10m and above 0.60%
Barclays receives a performance-based fee of up to 15% of the net realized and unrealized gains on the
options positions in the client’s account before paying the year’s performance fee but after certain
deductions, subject to a “high water mark.” The performance fees are calculated and payable annually and
when an account closes. Please refer to your Investment Advisory Agreement for additional information on
how we calculate your performance fee.
Fees are deducted from clients’ accounts, unless Barclays and the client agree otherwise in writing. Fees are
negotiable and, therefore, a client may pay a different fee than as set forth above.
In addition, clients invested in an Options Overlay Strategy may pay margin interest to Pershing in connection
with the margin used to finance their investments. Clients also pay execution costs for transactions in their
accounts. These amounts are paid to broker dealer with whom Barclays elects to transact.
Customized Client Solutions
For the Models Service, Barclays negotiates fees with each client and does not maintain a standard fee
schedule. The fees are payable quarterly in arrears and are automatically deducted directly from a client’s
designated account at Barclays, unless the client requests that Barclays sends it an invoice. If a Models
Service client chooses to invest in an Investment Product, the client will also pay the fee associated with that
Investment Product.
If a client receives other types of services in the Customized Client Solutions program, the client and Barclays
agree on the form of compensation, which could be asset-based, a fixed fee or based on securities trades.
The Wrap Programs
Barclays receives an asset-based fee from Wrap Program clients that is calculated as a percentage of assets
under management within the Wrap Program. The standard fee rates for each Wrap Program as well as the
process for billing and payment of such fees are described in the respective Wrap Brochure.
OTHER FEES AND EXPENSES
The advisory fees do not cover, and clients pay, if applicable:
commissions and other fees and charges for transactions, including execution or service charges, mark-
ups, mark-downs, spreads and odd-lot differentials. See “Item 12: Brokerage Practices”.
fees (besides the Wrap Fee) charged by an investment product and which may be described in its
prospectus, offering memorandum or other product documents, including fund investment management
fees and redemption fees
taxes relating to the account
other fees charged by third parties including third party custodian fees, exchange fees, electronic fund
transfer fees, ADR fees, auction fees, charges imposed by regulatory bodies and charges mandated by
law
Barclays’ fees under a client’s retirement plan account documents for opening or maintaining a
retirement account
Pershing’s interest and fees on margin and other loans, or on debit balances in an account
fees in connection with foreign exchange transactions or conversions.
PREPAID FEES
Barclays does not offer clients a fee prepayment option for any of its Advisory Programs.
COMPENSATION FOR THE SALE OF SECURITIES OR OTHER INVESTMENT PRODUCTS
Barclays and its affiliates provide services to certain funds (including funds that may be Investment Products)
in a number of different capacities and those funds may pay management and incentive fees, brokerage and
other fees and reimburse expenses to Barclays and its affiliates for such services. Clients should understand
that Barclays and its affiliates may retain these fees and reimbursed expenses, which are in addition to any
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