Item 5 Fees and Compensation
Individually Managed Accounts:
The annual fee for investment account management services for new clients, is up to one percent (1%)
of the value of all managed assets of such client. This fee is negotiable depending on the account value
and complexity of work, as determined by the Advisor.
All asset-based fees are deducted by the qualified custodian of record on a monthly basis in arrears, or
as otherwise indicated in the client agreement. Client statements for prior deductions will be provided
on a monthly basis.
Performance Based Portfolio Management Fees
Performance-Based Portfolio Management Fees are only available to Qualified Clients, as defined by
the SEC. In order to participate in this program, the Client will need to be vetted by the firm to determine
Qualified status and if performance fees are appropriate. The Client will need to agree to the terms of
the fees by signing the investment advisory agreement.
Qualified Clients will pay an annual management fee of up to 0.5% of assets under management, plus
a performance fee equal to 15% of capital appreciation above an 8% annual compounding hurdle.
Performance fees are subject to a high-water mark, meaning no performance fee is charged unless the
portfolio exceeds its previous highest value (adjusted for deposits and withdrawals). Performance fees
are billed quarterly in arrears.
All performance fees are negotiable at CCG’s discretion.
All fees paid to Adviser for investment advisory services are separate and distinct from the expenses
charged by third-party managers and Investment Companies to their shareholders. These fees and
expenses are described to the client in separate disclosures. These fees will generally include third-party
management fees, an Investment Company management fee, other fund expenses, and in some situations
a possible distribution fee.
Adviser will provide investment advisory services and portfolio management services but will not
provide custodial or other administrative services. At no time will Adviser accept or maintain custody
of a client’s funds or securities except for authorized fee deduction. The Client may contact the
Custodian directly for disbursements, or account record changes, and may also do so in writing to the
Caiman Capital Group
custodian. Adviser may act at the client’s convenience to facilitate such written communications to the
Custodian, provided that such action is not construed to be custody of client assets.
Client is responsible for all custodial and securities execution fees charged by the custodian and
executing broker-dealer. Fees paid to Adviser are separate and distinct from the custodian and execution
fees.
Clients may request to terminate their advisory contract with Adviser, in whole or in part, by providing
advance written notice. Upon termination, any fees paid in advance will be prorated to the date of
termination and any excess will be refunded to client through the Custodian. Client’s advisory agreement
with the Advisor is non-transferable without Client’s written approval.
Fee Deduction Disclosure
Where Adviser deducts its management fee from client accounts utilizing a qualified custodian, the
Adviser is required to meet the following requirements.
a. Possess written authorization from the client to deduct advisory fees from an account held by a
qualified custodian;
b. The firm must send the qualified custodian a written invoice detailing the fee amount to be deducted
from the client account; and,
c. The firm must send the client a written invoice itemizing the fee, the invoice must detail any formulae
used to calculate the fee, the time period covered by the fee and the amount of assets under management
on which the fee was based. This may be included with the clients performance report.
Right of Cancellation
In addition to the right to terminate an agreement pursuant to its terms, a client may cancel an agreement
with Adviser within five (5) business days of first receiving a copy of this disclosure brochure and
supplement without penalty or fee.
C. Additional Fees and Expenses
Custodian fees may include wires, account transfers, transfer agent services, margin account interest,
late settlement and postage fees. This may not be a complete list but includes the most common charges.
D. Termination and Refunds
Adviser's Investment management fees are payable monthly in arrears based on average daily balances
with adjustments for additional deposits of funds if any made in a month already billed, which will be
billed in arrears at the beginning of the next month for the additional cash flow. Upon termination, any
fees paid in advance will be prorated to the date of termination and any excess will be refunded to client
by check issued to the customer as soon as practicable.
E. Compensation for Sales of Securities
Caiman Capital Group
CCG does not buy or sell securities and does not receive any compensation for securities transactions
in any Client account, other than the investment advisory fees noted above.