Item 5 – Fees and Compensation
EIP’s fee arrangements with the stand-alone domestic private investment fund generally provide for the
payment of management fees quarterly in advance, based upon a percentage of assets under management
or committed capital as set forth in the Fund’s Offering Document. The management fees for the sub-
advised ETFs and the variable insurance trust are based on net assets. The aggregate advisory fee paid by
the other publicly offered registered investment company, which is currently the sole series of the EIP
Investment Trust (“the Trust”), is based on the average net daily assets and is computed and paid monthly
by the Fund to EIP. Total management fees paid by each Fund generally range from 0.40% to 1.25% per
annum, which includes the portion of the fee EIP shares with the registered investment adviser of the sub-
advised Funds. Fee billings may be based on different asset measurement types such as managed assets
or net asset value (“NAV”) up to a defined percentage as set forth in each Fund’s Offering Document.
Investors in the Private Funds may be subject to initial lockup periods, early withdrawal penalties, and
other provisions limiting withdrawal rights, in accordance with the provisions of each Fund’s Offering
Document. EIP, or in the case of the private domestic funds, an affiliate of EIP, may also receive annual
performance-based compensation as disclosed in the relevant Offering Document and in accordance with
all applicable laws. Certain clients and investors who are affiliated with EIP are not charged management
fees or performance-based fees.
EIP’s SMA and UMA fee arrangements generally provide for the payment of management fees based
upon a percentage of a client’s assets under management and are stated in the client’s management
agreement. EIP generally receives between 0.75% and 1.00% per annum for its management of SMAs,
and between 0.40% and 0.75% per annum for providing its model portfolio to UMA platforms. However,
please also note that many of EIP’s SMA clients are subject to platform or other fees from the clients’
advisors that are paid to the referring financial advisor firms, and not to EIP. EIP may also receive annual
performance-based compensation as disclosed in the relevant SMA agreement and in accordance with all
applicable laws. Management fees and performance-based fees are negotiable.
Unless otherwise specified in the client agreement, client fees are generally deducted from client
investment accounts. However, any client who wishes to be billed separately may contact EIP at the
number on the front of this Brochure.
In the event of the termination of an investment management agreement between EIP and a client or one
of the Funds where the Fund has prepaid its management fee, the client or Fund will receive a refund of
pre-paid fees attributable to any period after termination, pursuant to the terms of such investment
management agreement. Management fee refunds on intra-period and partial withdrawals are based on the
number of days left in the period and the amount withdrawn. These refunds are credited against the next
management fee charged. Management fees on intra-period and partial withdrawals are not refunded
where the cost of processing exceeds the amount due, as determined solely by EIP.
Client assets, which are from time to time not invested in other securities, are generally invested in cash
equivalents including demand deposits, time deposits, money market instruments or other short-term
investment vehicles. In such cases, the client may pay the money market fund or other short-term
investment vehicle an advisory fee on the assets invested in the fund or short-term investment vehicle in
addition to the advisory fee paid to EIP.
The Funds and SMAs will generally bear expenses in connection with their trading and investment
activities, which will generally include brokerage costs and other fees and expenses involved with their
respective trading activities. Please see Item 12 below for a more detailed discussion of brokerage
expenses and practices.
The Funds, with the exception of the ETFs, also bear additional expenses associated with organizing,
administering and continually offering the Funds. Such expenses include legal, accounting, escrow,
auditing, recordkeeping, administration, fund accounting, computer, clerical expenses, insurance,
expenses incurred in preparing reports and tax information to investors and regulatory authorities,
expenses of printing and dispatching offering materials and reports to investors, duplicating expenses,
mailing costs, courier costs and filing fees, where applicable.
From time to time, EIP may invest SMAs in one or more public Funds for which EIP serves as the
investment adviser or sub-adviser. Such investments are most likely to occur for cash management
reasons, such as to accommodate temporary additional liquidity resulting from tax loss harvesting
activities, but EIP may also choose to utilize these Funds for other investment reasons when it believes
that doing so is in the best interest of the SMAs. When EIP invests an SMA in a Fund for which EIP
already receives management fees, EIP will waive its management fee for the portion of the SMA that is
invested in the Fund. It is important to note, however, that the portion of the SMA that is invested in the
Fund will also be subject to additional Fund-level expenses that would not exist for direct investments,
including the expenses discussed in the paragraph above.