Item 5 – Fees and Compensation
Separate Account Fees
Management fees are generally charged at 1% per annum on each Separate Account’s
assets under management. Management fees are typically calculated at the end of each
calendar month and paid in arrears quarterly. In any partial calendar month, management
fees are prorated based on the number of days in which the Separate Account is open
during the month.
Performance based fees are generally charged at 15% on each Separate Account’s absolute
net profits above its high water mark as increased by any applicable hurdle rate. A “high
water mark” is the highest historical asset value for which the performance based fee was
last paid. Performance based fees are paid in arrears either on 31 December of each year or
when the Separate Account is terminated.
Registrant’s fees for Separate Accounts are individually negotiated. Thus, some clients may
pay more or less than other clients for the same or similar investment advisory services,
depending, for example, on account inception date, applicable investment mandates or
restrictions, size of mandate awarded to Registrant or number of related Separate
Accounts.
Fees are adjusted and/or calculated on a pro rata basis where: (i) the effective date is on a
date other than the first or last business day of a calendar month; (ii) the effective date of
termination of an agreement is on a date other than the first or last business day of a
month; and/or (ii) where the applicable percentage changes on a date other than the first
or last business day of a calendar month.
Registrant’s fees are exclusive of brokerage commissions, transaction fees, and other
related costs and expenses which shall be incurred by the clients. Clients may incur certain
charges imposed by prime brokers, custodians, brokers, third party investment and other
third parties such as fees charged by 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. Such charges, fees and commissions are exclusive of and in addition to
Registrant’s fees and Registrant shall not receive any portion of these commissions, fees,
and costs.
Ellis Munro Asset Management Pte. Ltd. - Form ADV II
Clients’ Separate Account agreements may be terminated in accordance with agreed terms.
Typically, a refund of prepaid fees is not applicable as fees are charged in arrears.
However, unearned, pre-paid fees will be promptly refunded.
Private Fund Fees
Fees for the Private Fund sub-advised by Registrant are described in its Private Placement
Memorandum (“PPM”).