Item 5 - Fees and Compensation
The specific manner in which fees are charged by Hexavest is established in a written agreement
between Hexavest and the client. Our basic fee schedules are as follows:
Segregated Accounts (minimum $30 million)
Account Assets Annual Fee
First $20 million 0.70%
Next $30 million 0.60%
Next $50 million 0.50%
Next $100 million 0.40%
Amounts over $200 million 0.30%
Private Funds (minimum $5 million)
Account Assets Annual Fee
First $10 million 0.60%
Next $30 million 0.50%
Amounts over $40 million 0.40%
Please note that fee schedules may differ for certain specific mandates such as Emerging Market
Equities.
Fees Generally
The fees set forth above are invoiced to, and paid directly by, the client. Fees are based on the
portfolio's average market value at the end of each month of the quarter and are paid quarterly in
arrears. Clients are not permitted to pay fees in advance. Fees are generally negotiable for mandates
greater than $100 million. Clients may incur brokerage and other transaction costs; Item 12 contains
further information about brokerage. Additional costs specific to Hexavest’s various accounts are
described more fully below.
Private Funds
No advisory fees are charged directly to Hexavest’s private funds. Advisory fees are charged directly
to the investor. Operating expenses of the funds will be borne by the funds, including any trustee, legal,
accounting and auditing fees, and other professional expenses and investment expenses such as
commissions, interest on margin accounts and other indebtedness, custodial fees, bank service fees and
other reasonable expenses related to the purchase, sale, or transmittal of the funds’ assets as determined
by the funds at their sole discretion. As such, entry and redemption fees may apply to subscriptions and
redemptions in the private funds. Operating expenses payable by the funds, excluding brokerage and
transaction expenses, may not exceed 0.20% of the funds’ net assets on an annual basis. Any amount in
excess of this limit is borne by Hexavest. Hexavest may, from time to time, enter into side letter
agreements with certain investors in the funds establishing rights under, or supplementing or altering
the terms of, the governing documents of the funds with respect to such investors in a manner more
favorable to such investors than those applicable to other investors. Hexavest generally will not enter
into side letters or similar agreements that have the effect of disadvantaging other investors in the
funds.
ERISA Accounts
Hexavest is deemed to be a fiduciary to advisory clients that are employee benefit plans or individual
retirement accounts (IRAs) pursuant to the Employee Retirement Income and Securities Act of 1974
("ERISA"), and regulations under the Internal Revenue Code of 1986 (the "1986 Code"), respectively.
As such, our firm is subject to specific duties and obligations under ERISA and the 1986 Code that
include, among other things, restrictions concerning certain forms of compensation and certain
disclosures regarding services and compensation. To avoid engaging in prohibited transactions,
Hexavest may only charge fees for investment advice about products for which our firm and/or our
related persons do not receive any commissions or 12b-1 fees, or conversely, investment advice about
products for which our firm and/or our related persons receive commissions or 12b-1 fees; however,
only when such fees are used to offset Hexavest's advisory fees.
Hexavest does not accept compensation for the sale of securities or other investment products,
including asset-based sales charges or service fees from the sale of mutual funds.