Item 5 FEES AND COMPENSATION
Adviser’s Basic Fee Schedule
Clients pay Adviser a management fee for services provided by Adviser, typically ranging from
.75% to 1.5% annually of the value of the net assets under management in the client’s account. A
minimum account fee may be charged. The fee is individually negotiated with the client, and is
payable either monthly or quarterly in arrears based on the ending account balance reported on
the applicable month’s account statement. On occasion Adviser may negotiate a fixed or flat fee
with a client for a particular service outside of the specialized programs.
If Adviser invests client’s assets in EFGCA Funds in which Adviser also earns management fees,
the last reported value of the investments in such EFGCA Funds may be deducted from the value
of the client’s account on the prior month’s statement for purposes of calculating the monthly
fee.
If Adviser invests client’s assets in third party funds, or in EFGCA Funds which in turn invest in
third party funds, the third party funds typically charge a fee within those funds, which is thus
indirectly paid by the client.
On occasion, a performance fee may be negotiated up to a maximum of twenty-five percent
(25%) of the annual profits from the investment of the client’s assets, to the extent such profits
exceed the earnings which would have accrued on such assets if they had been invested at a rate
equal to the average rate on a mutually agreed upon benchmark plus the management fee.
Performance fees are further described in Item 6.
Fees for providing custodial and administrative services, as well as transaction-related fees and
other applicable fees, will be deducted from the client’s account. Adviser or Adviser’s related
persons and affiliates may provide services to the client for which the client will pay additional
charges in the form of fees, commissions, or price mark-ups or mark-downs. Clients also
reimburse Adviser for reasonable expenses incurred by Adviser or its nominees or agents,
including affiliates of Adviser, in connection with the client’s accounts or related transactions.
For certain administrative services such as bill paying and personal account administration,
Adviser charges a flat fee of at least $250 annually. The fees for any other service are negotiated
based on the type of service.
The EFGCA Funds are private funds that invest in various securities and financial instruments,
alternative investments, and other private funds. The EFGCA Funds pay the Adviser a
management fee between 1.0% and 2.75% annually of the net asset value of the EFGCA Fund.
The management fees vary by EFGCA Fund as disclosed in each fund’s private placement
memorandum. Some EFGCA Funds pay a performance fee to the Adviser based on the EFGCA
Fund's profits, which is also disclosed in the respective EFGCA Fund's private placement
memorandum. Please refer to Item 10 Other Relationships, for additional information.
A client may pay more or less fees than similar clients depending on the particular circumstances
of the client, size of investments, additional or differing levels of servicing or as otherwise
agreed with specific clients. Each client enters into an agreement with Adviser that provides
information on such client’s specific fee arrangement.
Fee Schedule for Sub-Investment Management Services
Adviser generally changes a fixed quarterly fee subject to annual adjustment. Fees are
individually negotiated based on the types of consulting services being provided (see Item 4 for a
list of such services). There is a minimum fixed fee of $80,000 to $100,000 per annum plus 8 to
10 basis points calculated on the basis of assets under advisory. For further details please contact
the Adviser.
Calculation and Deduction of Advisory Fees
Adviser deducts fees from client accounts on a monthly or quarterly basis. Fees charged to U.S.
domiciled accounts are generally calculated and deducted monthly from the accounts, based on
value of the accounts at the end of each month. Accounts initiated after the beginning of a month
or terminated prior to the end of a month are charged a prorated fee. Accounts of non-US
domiciled clients are usually charged fees calculated and deducted quarterly from the accounts,
based on the value of the accounts at the end of the prior quarter, adjusted for capital
contributions and withdrawals made during the current quarter. Accounts initiated after the
beginning of a quarter or terminated prior to the end of a quarter are charged a prorated fee.
Performance fees, if any, are calculated according to the schedule agreed on with the client,
typically on the annual anniversary of the accounts. Fees for Sub-Investment Management
Services and other non-discretionary programs are generally billed to clients, although frequently
clients pre-authorize their custodians to automatically deduct the fees from the client’s account
and to make payment to Adviser.
Other Fees and Expenses
Adviser’s fees are generally exclusive of brokerage commissions, transaction fees, and other
related costs and expenses which shall be incurred by the client. Clients may incur certain
charges imposed by custodians, brokers, and other third parties such as fees charged by fund
managers, custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire
transfer and electronic fund fees, and other fees and taxes on brokerage accounts and securities
transactions. Mutual funds and exchange traded funds also charge internal management fees,
which are disclosed in a fund’s prospectus. Other charges, fees and commissions are in addition
to Adviser’s fee, and Adviser shall not receive any portion of these commissions, fees, and costs
unless previously disclosed.
As discussed above in Item 5, where a client is invested in the EFGCA Funds, the Adviser may
charge fees at the account level for assets invested in the EFGCA Funds when the Adviser is also
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