Item 5. Fees and Compensation
Management Fees - Separately Managed Accounts
JAM US’ fees will be determined by the nature and size of the mandate and are based on a standard
fee scale relating to investment capabilities. Fees are negotiated with a prospective client prior to
the commencement of the relationship. For institutional separately managed accounts, Jupiter
charges a management fee as a percentage of total assets in the account. These fees are negotiated
with clients on a case-by-case basis.
See our proposed rates below for institutional separately managed accounts:
Fee calculations are generally based on the market value of the assets under management in a
client’s account and will usually be billed in arrears on an annual, quarterly, or monthly basis. Fees
are due upon receipt of a billing statement and clients may choose whether to have them deducted
from assets or make payment separately.
Clients will incur brokerage and transaction costs which are described further at Item 12. There may
be further fees and expenses applicable to a client account which will depend on the negotiation of
each mandate.
JAM US does not have a specific minimum account size; however, it is unlikely a separately managed
account would be opened with less than USD $50,000,000 of assets under management.
Management Fees - The Private Fund
For the Jupiter NZS Global Equity Growth Unconstrained Fund LP, JAM US is entitled to receive a
monthly management fee equal to 1/12 of 0.65% of the balance of each capital account, calculated
monthly and payable in arrears as of the final day of each calendar month. The management fees and
other associated costs are charged within the fund and not billed separately.
The Jupiter NZS Global Equity Growth Unconstrained Fund LP maintains an initial subscription of not
less than USD $1,000,000 which may be waived at the sole discretion of the General Partner.
Other Fees and Expenses
The Fund will bear its own ongoing operational expenses (subject to a 10bps cap) including, but not
limited to, Management Fees and fees payable to the Administrator; legal, accounting, and
administrative expenses; auditing, tax preparation and other professional expenses; filing fees and
expenses; custodial fees; cost of brokerage services and bank services fees; transaction fees incurred
in connection with the Fund’s investments; the costs of printing and distributing periodic and annual
reports and statements; fees and expenses payable in connection with the ongoing offering of the
interests, including the cost of producing, updating and distributing offering memoranda; insurance;
taxes imposed on the Fund as determined by the General Partner; regulatory and compliance
expenses directly related to the Fund and administration of separate accounts. The Fund will also
pay any extraordinary expenses or costs that it may incur.
Miscellaneous
JAM US’ sole business is the asset management business from which its revenue is generated. In
the management of client portfolios, JAM US will not receive compensation from anyone other than
the client. For the avoidance of doubt, JAM US does not receive brokerage commission or soft dollar
benefits.
JAM US pays a portion of a client’s management fee and performance fee (where applicable) to
NZS in compensation for the delegated portfolio management activity performed for the Jupiter
NZS Global Equity Growth Unconstrained Fund LP.
JAM US or an affiliate can provide more favorable treatment to certain investors over other
investors in the same fund including negotiation of fees and other terms. Such arrangements may
establish rights under, altering or supplementing the terms of the limited partnership agreements,
subscription agreements and offering memoranda of the affected funds or be unrelated to a fund.
Certain arrangements can be granted to incentivize or permit investors to invest in a fund, invest
certain amounts or invest with JAM US in the future.
No supervised persons including sales staff receive any compensation for the sale of securities or
other investment products. Base salaries for sales staff are assessed on an ongoing basis to ensure
they are in line with the market rate. Bonuses for sales staff are 100% discretionary, are not formulaic
or commission based and are subject to the same controls and oversight as the rest of the company
(for example, amounts awarded are dependent on the company’s performance, the division’s
performance, and an individual’s own objectives – which include supporting the team and displaying
behavior worthy of merit). In addition, sales staff are not rewarded for selling a specific strategy.
The investment management agreement between the Fund and JAM US have not been negotiated
at arm’s length. The management fee payable to JAM US is payable without regard to the overall
success of or income earned by the Fund.