Item 5. Fees and Compensation
CAM’s compensation is negotiable and varies, but typically, it charges an annual fee of
approximately 1% of assets under management, which amount is payable in quarterly
installments at the beginning or end (depending on the provisions of each client’s partnership or
other account agreement) of each calendar quarter based on the net market value of each client’s
account on the date the fee accrues and becomes payable.
CAM typically deducts management fees directly from client accounts.
If CAM causes a Fund to invest in mutual funds, investors in that Fund will also pay, indirectly,
investment advisory fees to the managers of those funds.
CAM 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.
Each account is responsible for its own costs and expenses, including trading costs and expenses
(such as brokerage commissions, and clearing and settlement charges), ongoing legal, accounting
and bookkeeping fees and expenses, and the fees and expenses charged by any Fund
administrator for its accounting, bookkeeping and other services. CAM 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.
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 CAM is general partner, to use the “alternative reporting option” to
report CAM’s compensation as “eligible indirect compensation” on the Schedule C of the plan’s
Form 5500 Annual Return/Report of Employee Benefit Plan.
Relationships with CAM’s investment partnership clients are terminable on expiration of the
partnership’s term, dissolution of the partnership or on CAM’s withdrawal as general partner.
Each limited partner may withdraw from a partnership, on specified prior written notice, on the
last day of any calendar quarter.
In all cases, clients and investors bear expenses and the pro rata portion of the management fee
through the date of termination. All prepaid but unearned advisory fees are refunded on
termination of a client’s account. An investor who withdraws from a Fund on a date other than
the last day of a quarter, however, does not receive a refund of the management fee previously
paid.