Item 5 - Fees and Compensation
Private Funds and Managed Accounts Fees
Caravan’s fees are established on a case by case basis. Caravan generally charges a fee based on a
percentage of assets under management, called management fees (“Management Fee”). The standard
management fee of the private funds managed by Caravan is 2% of the assets. Fees may be negotiable
based on the size of the account or other factors.
The management fee is due and payable in advance and charged in quarterly installments (of 0.50% of
the value of the net assets calculated on the basis of the value of such net assets as of the opening of
business on such day, after giving effect to any contributions and withdrawals). Any Management Fee
payable for any period of less than one full calendar quarter will be pro-rated appropriately and be payable
on the first day of such period. Clients may terminate the advisory agreement with Caravan by providing
written notice. Upon termination, any prepaid management fees related to the remainder of the calendar
quarter will be refunded to the client based upon the total months remaining in the billing period for
which Caravan’s advisory services were not provided. Caravan may allocate a portion of the management
fees it receives to third party marketers to compensate for assets raised.
For separate accounts, Caravan bills the clients for fees incurred. Caravan does not deduct fees directly
from separate accounts.
Caravan’s clients may incur additional fees. Such fees may include but are not limited to, custodial fees,
wire transfer fees, brokerage commissions, transaction fees, fund accounting, fund administration, audit,
tax filings and preparation, amortized start-up costs, legal fees, other professional fees, and withdrawal
fees that may be assessed in certain investment vehicles to offset trading impact and transaction costs.
Such charges, fees and commissions are exclusive of and in addition to Caravan’s management fee.
Caravan does not receive any portion of these fees.
In addition, Caravan may hold back up to 10% of the withdrawal made by clients of private investment
funds until the annual audit is completed. The purpose of this hold back is to provide insurance in case
the auditors subsequently find that the value of the private investment fund on the date the withdrawal
was overstated or inaccurate. Once the audit is complete, the amount held back is paid within 30 days
after the audited financial statement are finished, typically no later than April 30th following the fiscal
year in which the withdrawal occurred.
Additional information regarding management fees and expenses, for private investment funds, can be
found on the following documents:
1) The Confidential Private Offering Memorandum of the Emerging Frontiers Fund LP.
2) The Emerging Frontiers Fund LP Second Amended and Restated Limited Partnership Agreement.
3) The audited financial statements of the Emerging Frontiers Fund.
4) The MIRI Strategic Emerging Markets Fund LP Limited Partnership Agreement
5) The Confidential Private Offering Memorandum of the MIRI Strategic Emerging Markets Fund LP
None of the employees at Caravan receive compensation for the sale of securities or other investment
products, including asset-based sales charges or service fees from the sale of mutual funds.
Registered Fund Advisory Fees
Caravan charges a 1.10% Management Fee to the Caravan Frontier Markets Opportunities Fund. The
Caravan Frontier Markets Opportunities Fund has and expense ratio of 1.30% for the supra institutional
share class. The Frontier Caravan Emerging Markets Fund has a management fee of 0.70% and an expense
ratio of 0.80% for the Institutional share class.