Item 5 – Fees and Compensation
Each investor in an FTIM Account is typically charged a management fee equal to a percentage of net assets
and an annual performance fee or special allocation equal to a percentage of the net appreciation of such
fund at the end of each calendar year (over an index related benchmark in certain instances), which are
paid/allocated directly to FTIM or to an affiliate of FTIM. Certain expenses, which include reimbursements
to FTIM, are also the responsibility of the FTIM Accounts (and thus the investors in the FTIM Funds) as
described below. Similar provisions to those described in this paragraph are expected to apply to any
Separate Account.
FTIM’s current fee schedule is generally as follows:
• Management Fee: Long Only – 1% annually
• Performance Fees/Special Allocations: Long Only 10% - 30% annually
Fees vary for different FTIM Accounts and investors with respect to FTIM Funds depending, for example,
on the investment strategy employed, the date an investment was made or the amount invested. In
calculating performance-based fees and special allocations, any loss (whether an absolute loss or a loss
relative to a benchmark, depending on applicable terms) in an FTIM Account is carried forward so that no
performance-based fees or special allocations are charged to or deducted from the FTIM Account until any
prior loss has been recouped, subject to certain adjustments (i.e., subject to a loss carry forward or high
water mark or after deduction of management fees depending on the applicable terms governing the
calculations). Management fees for the FTIM Accounts are ordinarily paid monthly or quarterly in arrears
while performance-based fees and special allocations are generally also paid or deducted annually in arrears,
or upon withdrawal of an investment in an FTIM Fund. Fees are invoiced by FTIM and paid by the
administrator for the relevant FTIM Accounts.
The management fees, performance-based fees and special allocations applicable to certain investors in an
FTIM Fund or Separate Account clients, including employees, affiliates and related parties of FTIM as well
as third parties, may be waived or modified down without entitling any other investors to a waiver or
modification.
Depending on the terms of investment, investors in the FTIM Funds may withdraw all or a portion of their
investment, subject to certain minimum dollar requirements (in FTIM’s discretion), effective as of the
beginning of a particular quarter with prior written notice (depending upon the terms of the particular FTIM
Fund). A Separate Account agreement (if applicable) is terminable as mutually agreed by the parties or as
specified in the relevant agreement. Upon termination of any Separate Account or an FTIM Fund, any
prepaid, unearned fees (if applicable) are expected to be promptly refunded, and any earned, unpaid fees are
expected to be due and payable.
FTIM’s compensation is exclusive of brokerage commissions, transaction fees, custodial fees, and other
costs and expenses that are incurred by an FTIM Account. Clients should expect to incur other charges
imposed by custodians, brokers, or other counterparties, as well as interest and commitment fees on loans
and debit balances, research, research-related (such as travel and communications expenses) and data
service costs, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage
accounts and securities transactions. Clients also bear certain operating expenses, including administration,
accounting, communications including marketing/investor relations and marketing/investor relations-
related costs (including travel costs), back office and middle office services and related costs, tax, legal and
regulatory costs (including but not limited to FTIM’s regulatory and legal costs in connection with
registration and ongoing regulation as an investment manager in Singapore (with the Monetary Authority
of Singapore), the United States (with the SEC) and other jurisdictions, as applicable, and including advice
of counsel in connection with preparation of regulatory forms including this Form ADV Part 2A), software
and technology consultant (including cloud consulting) fees and expenses, and directors’ fees and expenses
and other costs and expenses disclosed in the relevant private placing memorandums. With respect to the
FTIM Funds, certain operating expenses (generally excluding brokerage, prime brokerage and custodian
fees and costs) are subject to expense caps as disclosed in the relevant private placing memorandums.
Each FTIM Account pays its expenses directly or reimburses FTIM, as instructed by FTIM, for expenses
paid on the FTIM Account’s behalf or for its benefit. The expenses incurred by each FTIM Account vary
depending on the nature of the operations and activities of the FTIM Account, and each FTIM Account’s
respective Governing Documents describe them in detail. FTIM seeks to allocate expenses attributable to
the FTIM Accounts that are incurred on behalf of multiple FTIM Accounts fairly among them, in accordance
with one or more allocation protocols established by FTIM from time to time. FTIM believes such allocation
protocols are reasonable; however, the allocation of expenses can involve subjective determinations and
conflicts of interest (e.g. allocating costs only to those FTIM Accounts which can bear them), and other
reasonable options may exist that may yield different results, including results that would be more beneficial
to one or more FTIM Accounts and less beneficial to FTIM. FTIM, its affiliates and FTIM Accounts derive
direct and indirect benefits from these expense provision as such provisions provide for the payment of
expenses (or portions thereof) that it would otherwise be required to pay entirely by itself.
See Item 12 (Brokerage Practices) below for more information about the brokerage commissions that will
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