Item 5. Fees and Compensation
Beryl’s compensation is negotiable and varies by client, but generally, Beryl charges an annual
fee of 1.5% of assets under management based on the net market value of each client’s account
on the date the fee accrues and becomes payable. The management fee amount is payable in
installments at the beginning of each calendar quarter unless negotiated otherwise (depending on
the provisions of each client’s agreement). Beryl also generally charges to eligible clients a
performance fee equal to between 10% and 20% of net profits (including both realized and
unrealized gains and losses). Performance fees generally are assessed in arrears on an annual or
quarterly basis (depending on the provisions of each client’s agreement) and are typically only
applied to the portion of profits that exceed the cumulative losses previously incurred by a client.
Beryl provides certain investors or clients special fee arrangements that it generally does not
provide to other investors or clients. These special fee arrangements are negotiated with each
investor or client in advance of any investment. Beryl may waive all or any portion of the
management or performance fees with respect to any investor or client.
Beryl complies with Rule 205-3 under the Investment Advisers Act of 1940, to the extent required
by applicable law. Performance fees may create an incentive for Beryl to make more risky and
speculative investments than it would otherwise make.
Beryl typically deducts management and performance fees directly from client accounts, except
with respect to the Sub-Advised Funds.
Beryl believes that its fees are competitive with fees charged by other investment advisers for
comparable services. Comparable services may be available, however, from other sources for
lower fees.
The disclosure in this Item 5, together with the disclosure in Item 12, allow a plan that is subject
to the Employee Retirement Income Security Act of 1974 and that invests in an investment limited
partnership of which Beryl is general partner, to use the “alternative reporting option” to report
Beryl’s compensation as “eligible indirect compensation” on the Schedule C of the plan’s Form
5500 Annual Return/Report of Employee Benefit Plan.
Generally, if a Fund terminates or an investor withdraws or redeems, the investor bears expenses
and the pro rata portion of the management and performance fees through the date of termination
or withdrawal or redemption. However, if an investor withdraws or redeems from a Fund (other
than the Sub-Advised Funds) on a date other than the last day of a calendar quarter, there is
usually no refund to that investor of anymanagement fee that it previously paid for that quarter.
While the terms of each separately managed account vary, except as may be otherwise negotiated
in particular cases, generally the holder of a separately managed account may terminate the
account by giving a specified amount of prior written notice (which in some instances may be
substantially less notice than is required to withdraw from a Fund). In all cases for each separately
managed account, (1) expenses, the pro rata portion of the management fee and the performance
fees through the date of termination are charged to the account, and (2) all prepaid but unearned
advisory fees are refunded on termination of the account.
Each Fund and separately managed account is responsible for its own costs and expenses,
including trading and research costs and expenses (such as data feeds, software fees, research,
portfolio and risk management systems, quotation services and related equipment, brokerage
commissions, expenses related to short sales,and clearing and settlement charges), taxes, ongoing
legal, accounting, and bookkeeping fees and expenses, professional, expert, and consulting fees
and expenses, and the fees and expenses charged by any Fund administrator for its accounting,
bookkeeping, and other services. The Funds will also bear costs associated with their organization
and fees charged by attorneys for Beryl and its affiliates. Beryl bears its own operating, general,
administrative, and overhead costs and expenses, other than the expenses described above. All
or part of these costs and expenses may be paid, however, by securities brokerage firms that
execute clients’ securities trades, as discussed in Item 12 below. Beryl may, in its sole discretion,
opt to pay any of the foregoing client expenses on behalf of client accounts, but in no event shall
Beryl’s past payment of such expenses obligate it to continue paying such expenses.
The fee information provided above is intended to be a general summary of fees charged and
general business practices of Beryl in connection with the advisory services. These descriptions
are for summary purposes only and are supplemented and superseded in their entirety by the
applicable governing documents of each Fund, investment management agreement, and or side
letter.