Item 5: Fees and Compensation
Standard Fee Schedule
We are compensated for our investment advisory services for Managed Accounts via a standard fee
schedule which may be modified from time to time.
The Systematic Macro strategy generally charges a management fee and a performance fee.
Performance fees are typically 20% whereas management fees depend on both the target risk level
of the client account as well as the amount of assets invested. The headline fee for a standard
Systematic Macro account with 15% volatility target and up to $50m invested is 1.50%.
The fee schedule for Managed Accounts is mutually agreed upon in the Investment Management
Agreement. Fees may be negotiated in our sole discretion in light of a Client’s special circumstances,
such as asset levels, service requirements, or other factors. In addition, there may be historical fee
schedules with long-standing Clients that differ from those applicable to new client relationships.
Fees for advisory services are generally billed either monthly or quarterly, in arrears, and are prorated
to the date of termination if the Client terminates his or her relationship with us. Fees are prorated at
to cover only the period the account assets were under management.
The fees charged to Clients generally are computed as a percentage of the value of the assets under
management (asset-based fee). Flat fees may also apply in some cases. Performance fees are also
deducted with limited exceptions (see Item 6 for further information).
The fees payable by investors in our Funds are set forth in the governing documents of such Funds.
The governing documents of our Funds provide more detail on the calculation and frequency of
payment of such fees.
Additional Fees and Expenses Payable by Clients
Our fees are exclusive of brokerage commissions, transaction fees, service provider fees, and other
related costs and expenses which will be incurred by the Client. Execution of Client transactions
typically requires payment of brokerage commissions by Clients. Each Fund’s expenses are outlined
in the respective governing documents for such Funds.
Investment activity may also involve other transaction fees payable by Clients, such as sales charges,
odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on
brokerage accounts and securities transactions. In addition, Clients may incur certain charges
imposed by custodians, broker/dealers, third-party investment consultants, and other third parties,
such as custodial fees, consulting fees, administrative fees, and transfer agency fees.
Fees for the Sale of Securities
Aside from the fees listed above and in Item 6, neither we nor our employees receive, directly or
indirectly, any compensation related to the sale of interests in the Client Accounts.