Item 5 – Fees and Compensation
Management Fee
Management fees with respect to separately managed accounts are subject to negotiation.
The specific manner in which fees are charged by and paid to EII are fully documented in
the client’s written investment management agreement with the Firm.
Clients are always invoiced directly for investment management services. Fees are never
debited from the client’s account nor are any fees billed in advance as all fees are billed in
arrears. Management fees are calculated based on a percentage of the market value of
assets under management.
The standard fee schedule typically charged for a U.S. REIT strategy separately managed
account is:
Assets Under Management Fee
First $1 Million 1.00%
Above $1 Million - $5 Million 0.75%
Above $5 Million - $10 Million 0.60%
Above $10 Million - $30 Million 0.50%
Above $30 Million - $50 Million 0.40%
Above $50 Million 0.35%
The standard fee schedule typically charged for a U.S. REIT Income strategy separately
managed account is:
Assets Under Management Fee
First $1 Million 1.00%
Above $1 Million - $5 Million 0.75%
Above $5 Million - $10 Million 0.625%
Above $10 Million 0.50%
Subject to negotiation and proper contract documentation, separately managed accounts
can be charged a basis point fee plus a performance incentive fee. Clients are billed for
investment advisory services in arrears at the end of a calendar quarter for the three-
month period then ended. Payment is due within thirty days of billing.
Subject to client approval and guideline constraints, accounts can be (or have the ability to
be) invested in the EII US Property Fund, a UCITS fund managed by the Firm. Investors in
the EII US Property Fund are only subject to the Fund’s expenses covered by the Fund’s
Total Expense Ratio (“TER”). The Fund’s expenses include a management fee that is paid to
EII. No other fees are charged to a client by EII that is invested in the EII US Property Fund
unless there is an incentive fee charged. The EII US Property Fund is not marketed to
investors in the United States.
In the event that EII recommends, or invests client assets in the EII US Property Fund, the
client pays a management fee as an investor in the EII US Property Fund and the amount of
such investment will be excluded in EII’s investment management fee calculation for such
clients.
A client should refer to the EII US Property Fund’s prospectus or offering memorandum for
a comprehensive description of fees.
As previously noted under Item 4, EII has an engagement with an unaffiliated advisory firm
to provide advice and analysis with respect to a specifically identified security. EII is paid a
fixed fee pursuant to this engagement, which is payable quarterly in arrears.
Incentive Fees
See Item 6 below for information with respect to incentive fees.
Redemption and Termination
Investors in the EII US Property Fund can redeem their interest in the fund in accordance
with the applicable redemption terms of the fund’s prospectus. Investors should refer to
the fund’s prospectus for additional information, including fund information,
corresponding fees charged and applicable redemption terms.
Clients, who are not investors in the EII US Property Fund and invest with the Firm through
a separate account, are permitted to withdraw their funds as specified by the terms of the
investment management agreement negotiated with the Firm.
Generally, investment advisory services provided by EII are terminable by either party
upon 30 days prior written notice, unless otherwise specified in the investment
management agreement. In the case of any termination, management fees will be
determined on a pro rata basis through the date of termination.
Accounts initiated or terminated during a calendar quarter will be charged a prorated fee.
Upon termination of any account, any earned, unpaid fees will be due and payable.
Other Fees and Expenses
The Firm’s fees are exclusive of brokerage commissions, transaction fees, and other related
costs and expenses which shall be incurred by the client. Clients can expect to incur certain
charges imposed by custodians, brokers and other third parties such as fees charged by
other 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.
The EII US Property Fund also charges internal management fees, which are disclosed in
the fund’s prospectus. EII can purchase shares of non-proprietary funds or unit trusts
where an advisory fee is assessed as an expense of the fund. In these instances, clients are,
in effect, paying two advisory fees on the value of assets invested in these funds.
Item 12 further describes the factors that EII considers in selecting broker-dealers for
client transactions and determining the reasonableness of their compensation (e.g.,
commission rates).
Expense Reimbursement
For one client, as agreed upon and communicated in advance, EII is entitled to a quarterly
reimbursement of all reasonable and duly documented costs, expenses and disbursements
it incurs in the performance of its services, duties and obligations under the written
investment management agreement. EII however,