Item 5: Fees and Compensation
The specific manner in which fees are charged by CAMC is established in a client’s written
agreement with Insight. Fees for client accounts are generally based on the average or ending
market value of the assets under management (AUM) in client accounts on either a monthly or
quarterly basis. The AUM includes securities, cash and cash equivalents, which are valued using
third-party pricing services or by CAMC when it reasonably believes third-party prices are incorrect.
Fees are billed in arrears; although some clients may pay fees in advance at their own discretion.
However, CAMC does not require prepayment of advisory fees. If a client has paid fees in advance,
and the client terminates its account prior to the end of the accounting period, upon termination,
CAMC will remit to the client the remaining prorated portion of any prepaid fees.
CAMC reserves the right to negotiate minimum account sizes, which may be dependent upon various
factors, including, but not limited to, the scope of the advisory services provided, economies of scale,
a client’s total AUM across all strategies and across all accounts managed by Insight, the expectation
of future assets and any historic relationship with Insight. CAMC reserves the right to negotiate
different fees with clients, which may be higher or lower than those reflected herein. Certain clients,
including employees of an Insight entity, may negotiate lower fees or be entitled to different terms and
conditions than those of other clients. A minimum fee may also apply regardless of account size.
CAMC may also offer separate accounts which are subject to incentive fees or performance fees, which
are generally based on a share of capital gains on or capital appreciation of, the assets of a client.
These performance fees are generally subject to a High Water Mark. Some performance fee
arrangements are also subject to a Hurdle Rate. Any such performance fees will comply with the
applicable requirements of the Investment Advisers Act of 1940, as amended (Advisers Act) and
specifically Section 205-3 thereof (otherwise referred to as the ‘Performance Fee Rule’).
Although fees may be negotiated, CAMC’s standard separate account fee schedule can be found on
the following page.
Investment
Strategy Annual Fees
Minimum
Fixed Income strategies
US Buy and Maintain 0.20% on the first $100 million $100 million
0.10% thereafter
Enhanced Cash 0.15% on the first $100 million $100 million
0.10% thereafter
Short Duration 0.20% on the first $100 million $100 million
0.15% thereafter
US Core Fixed Income 0.22% on the first $100 million $100 million
0.15% thereafter
US Core-Plus Fixed Income 0.30% on the first $100 million $100 million
0.20% thereafter
US Corporate 0.25% on the first $100 million $10 million
0.17% thereafter
US Intermediate Fixed 0.25% on the first $100 million $100 million
Income 0.20% thereafter
US Long Duration 0.25 % on the first $100 million $100 million
0.20% thereafter
US Select Income 0. 35 the first $100 million $100 million
0.25% thereafter
Structured strategies
Asset-backed Securities 0.50% on the first $100 million $100 million
(Secured Finance) 0.40% thereafter
Commercial Real Estate 0.50% on all assets $100 million
Loans
Liability Driven Investing strategies
Liability Driven Investment 0.20% on all assets $100 million
Separate Accounts Investing in Insight Investment Funds
If CAMC invests a portion of a client’s account assets in a Mutual Fund (US SEC-registered investment
companies) or Private Fund offered by an Insight entity, the client’s account generally will not be
charged an investment management fee by Insight on the portion of their account invested in such
fund(s). However, accounts that hold such fund(s) will incur the costs related to being a shareholder or
investor in such funds, including management fees, administrative fees, and other similar fees as
described in the prospectus and/or offering memorandum. The annual total net expense ratio for a
particular fund may be higher or lower than the management fee CAMC charges for that client’s
separate account.
Mutual Fund Fees
CAMC provides discretionary investment management services to Mutual Funds. Each Mutual Fund’s
prospectus will include information about the fees and expenses paid by investors in each Mutual Fund,
as well as the management fees received by CAMC for investment management services provided to
each Mutual Fund.
Where Insight has been appointed as a Sub-Adviser to a Mutual Fund, Insight receives
compensation for investment management services from the Mutual Fund. This compensation is
agreed with the Adviser to the Mutual Fund who may be an affiliate of Insight. Please see Item 10
for details of Insight’s affiliates.
Private Fund Fees
The applicable fees and expenses are set forth in each Private Fund’s investment advisory
agreement, subscription agreement and/or other governing documents, or the offering memorandum,
if applicable. Fees may consist of a management fee and, as applicable, an incentive fee or
...