Item 5 – Fees and Compensation
Private Account Advisory Services
HEEL’s standard fee schedule for institutional segregated investment accounts (“Private Accounts”) for the European Alpha,
European Alpha ex-UK, Eurozone and Sustainable Europe strategies in basis points are as follows:
Strategy $50m $100m $150m $200m $250m $500m $1bn
European Alpha Equity 75 65 60 60 55 50 45
European ex-UK Equity 75 65 60 60 55 50 45
Eurozone 75 65 60 60 55 50 45
Note: Fees are negotiable and subject to change.
Minimum investment can vary depending on the investment account inception date, applicable investment mandates or
strategy but generally, HEEL requires a minimum investment of restrictions, total assets under management by HEEL or
USD 50 Million to open a Segregated Account and all mandates number of related Private Accounts. Fees charged to Private
must meet a minimum revenue requirement of USD 200,000. Accounts are not based on the capital gains or the capital
appreciation of any such accounts.
Fees are typically charged quarterly in arrears based on the
market value of assets in a Private Account on the last trading HEEL bills each Client account in accordance with the
day of each calendar quarter. In any partial calendar quarter, management fee calculation methodology provided by the
fees are pro-rated based on the number of days in which the Client. In general, this means that HEEL calculates fees by
account is open during the quarter. For purposes of applying its negotiated fee to an average of the month-end
calculating HEEL’s advisory fees, the market value of assets in closing values of each month in the quarter.
a Private Account shall consist of the market value of
securities and other investments held in the account and will Clients’ Private Account agreements may be canceled at any
not be reduced by any margin or other indebtedness of Client time, by either party, for any reason upon written notice.
with respect to such securities or other investments. Assets of Typically, a refund of prepaid fees is not applicable as fees are
Private Accounts that have a business relationship to each charged in arrears. However, unearned, pre-paid fees will be
other may, at the discretion of HEEL, be aggregated for promptly refunded.
purposes of calculating the advisory fee applicable to each
Fees for each private fund are described in its fund
Private Account.
prospectus. Unless otherwise indicated in the fund prospectus
In certain circumstances, Private Account fees and minimums or other governing documents, management fees are paid
may be negotiable. To the extent that fees are negotiable, quarterly in arrears.
some Clients may pay more or less than other Clients for the
same management services, depending, for example, on
Hermes European Equities Limited 3
In addition to management fees payable to HEEL, transaction Item 8 – Methods of Analysis, Investment
costs will be incurred along with other costs such as custodian Strategies and Risk of Loss
fees, brokerage fees, wire transfer and taxes charged by
HEEL is a specialist high-alpha European equity investment
service providers such as custodian, brokers and others.
manager.
Item 6 – Performance-Based Fees and Side- Generally, each Client account is managed pursuant to a
single strategy determined by the Client and in accordance
By-Side Management
with investment objectives and guidelines agreed upon.
Certain Clients may negotiate a performance-based fee.
Performance-based fees are negotiated in compliance with The value of investments and income from HEEL strategies
Rule 205-3 under the Investment Advisers Act of 1940, as may go down as well as up, and investors may not get back
amended (the “Advisers Act”) or as otherwise permitted by the original amount invested. Performance targets cannot be
Advisers Act Section 205. These Separate Accounts are guaranteed, and past performance is not a reliable indicator
managed in the same facility, using the same systems and of future result. HEEL offers long-term investors a high-alpha,
staffed with the same personnel used for Clients which do not high conviction approach to European Equity management.
have performance-based fees. Depending on performance, HEEL focuses on stock selection with the aim to deliver
fees obtained by HEEL and compensation earned by its sustainable long-term performance.
investment staff on these Separate Accounts may be
significantly higher than that earned on accounts of Clients HEEL believes that our perspective and core beliefs about
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