ESM Management LLC

Item 5 – Fees and Compensation
ESM’s compensation is governed by the written agreement in place with each client that describes
the types of fees and expenses charged to each client. ESM’s fees are negotiable and will depend
on the nature of the advisory services that ESM will provide. This section describes ESM’s typical
fee arrangements with clients.
Management Fees
ESM typically charges clients a management fee calculated as a percentage of the net asset value
of the client’s portfolio, including any cash balances, if applicable. ESM bills clients directly for
management fees in arrears. Generally, ESM bills clients semi-annually; however, this is
negotiable. Certain clients do not pay a management fee and only pay incentive fees, as described
in further detail below.
Incentive Fees
ESM charges an incentive fee to certain clients based on the profits that are generated in the
account, on a realized basis. The incentive fees may be subject to hurdles that are applicable to the
account. The exact calculation of the incentive fee is outlined in the account management
agreement between ESM and its client. ESM may only charge an incentive fee to clients that meet
certain eligibility requirements.
Mutual Fund Fees
Certain mutual funds that ESM acts as a sub-advisor to the funds have multiple share classes
available with different fees applicable to each share class (including 12b-1 fees and sales charges).
Please read the prospectus for a list of all applicable fees and expenses that may be incurred when
investing in this fund.
Expenses
Fees paid to ESM are exclusive of all custodial fees, brokerage commissions and transaction costs
paid to the client’s custodian, brokers, or other third parties, as well as any fees and taxes on
brokerage accounts and securities transactions. The client should review all fees charged by funds,
brokers, ESM, and others to fully understand the total amount of fees paid by the client for
investment and financial‐related services.
Additionally, private funds managed by ESM typically are required to bear certain operating
expenses incurred in connection with ESM’s management of the portfolio. Prospective investors
in a fund should carefully review the fund’s offering documents for a complete description of the
expenses that will be borne by the fund.

Item 7 – Types of Clients
ESM provides investment management services to private funds and other institutional clients,
such as pension funds, mutual funds (including UCITS funds and other non-US equivalents),
family offices, and high net-worth individuals.
ESM’s minimum investment requirement is $50 million for new managed accounts. ESM may
waive the minimum investment amount at its discretion. The minimum investment amount for the
mutual fund for which ESM acts as a sub-advisor is $1,000. Existing client relationships are
excluded from the minimum investment amount.