ITEM 5 – FEES AND COMPENSATION
The fees applicable to each of the Funds are set forth in detail in the corresponding Offering Documents.
Investors should refer to the relevant offering documents for a complete understanding of how the Firm
is compensated for its advisory services. A brief summary of such fees is provided below.
Management Fee
Management fees may vary with depending on the Fund and share class. Kynance Cove Capital (Cayman)
Limited (‘The Procurement Agent’) will receive a management fee and shall pay to Kynance Cove by way
of renumeration for its services. The management fees are explained more fully in the Fund’s Offering
Documents. The management fee will range from approximately 1.5% to 1.75% per annum upon the net
asset value of each series of shares of the Fund held by. Such fees will typically be calculated monthly and
paid in arrears in accordance with the governing documents of the applicable Fund.
Performance Fee
The Procurement Agent will receive a performance fee from the Fund, ranging from approximately 18%
to 20%. The performance fee in respect of each series of shares will be equal to the relevant performance
fee rate of the appreciation in the net asset value of that series during the calculation period above the
base net asset value of that series.
Other Types of Fees or Expenses
As more fully described in each Fund’s Offering Documents, the Funds will bare the expenses incurred in
connection with their operations. These include (but are not limited to) the following: all costs and
expenses incurred in connection with all transactions carried out by the Fund and/or the Master Fund or
on their behalf (whether or not consummated) and the acquisition, holding and disposal of related
investments, including (but not limited to) (i) brokers’ commissions and charges (if any), borrowing
charges on securities sold short and the costs of maintaining margin accounts and options premiums, (ii)
interest on borrowings, including borrowings from the Prime Brokers, (iii) any taxes and any fees, charges
and expenses of the Master Fund’s counterparties, (iv) clearing and settlement charges, (v) any taxes or
regulatory or corporate fees payable to governments or agencies, (vi) charges and expenses of legal
advisers, accountants and auditors in respect of such transactions and related investments, (vii) due
diligence and monitoring expenses and consulting and appraisal fees in respect of potential transactions
and/or existing investments, (viii) costs associated with the sourcing of investments, (ix) costs associated
with any exchange membership held by or for the benefit of the Fund and/or the Master Fund and any
legal or other third party fees and expenses incurred in obtaining and maintaining any such membership
and (x) to the extent permitted by applicable laws and regulations, research-related expenses (including
travel expenses) and corporate access fees.
All costs and expenses incurred in connection with the administration of the Fund and the Master Fund,
including (but not limited to) (i) communication expenses with respect to investor services and costs and
expenses in connection with the distribution of reports and notices to Shareholders, (ii) all costs and
expenses of meetings of Directors and Shareholders and of implementing any investor voting or consent
procedures, (iii) all costs and expenses of preparing and distributing financial and other reports,
prospectuses and similar documents and (iv) the cost of obtaining and maintaining a listing of the Shares
or any Sub-Class on one or more stock exchanges.
Kynance Cove Capital LLP Form ADV Part 2A Brochure
All costs and expenses incurred in connection with operational matters for the Fund and the Master Fund,
including (but not limited to) those related to (i) investment and trading-related computer hardware,
software and other technology for use by Kynance Cove in evaluating and managing risk and/or to
facilitate the investment process, order execution, valuations, accounting functions, reporting,
compliance with applicable regulation or law or any other aspect of management of the Fund and/or the
Master Fund (e.g. Bloomberg terminals, data management and recovery services, trade order
management systems, portfolio management systems and risk management systems), (ii) installation and
maintenance of computers, cables and other infrastructure and equipment used by Kynance Cove
primarily for investment and trading purposes, (iii) data, including (but not limited to) price data and data
relating to markets, indices, products, financial instruments and companies and other economic data and
statistics, and news, quotation and other information services for use by Kynance Cove in its management
of the Fund and the Master Fund; in addition to the fees and expenses of the Service Providers, all fees,
charges and expenses of other service providers to the Fund and/or the Master Fund, including (but not
limited to) legal advisers, accountants, auditors, tax advisers, providers of tax reclamation services, banks,
brokers, custodians, fund administrators, consultants, middle and back office service providers, AML
officers and valuation service providers.
All insurance, litigation and indemnification costs and expenses, including (but not limited to) (i) insurance
for the benefit of the Directors, (ii) errors and omissions insurance, (iii) cybersecurity insurance, (iv)
indemnification expenses, (v) litigation expenses, including (but not limited to) litigation in respect of the
Master Fund’s investments, (vi) the costs of proxy and securities class action advisory firms, and (vii) the
costs of settling any litigation or similar claim.
All taxation related costs and expenses, including (but not limited to) (i) any taxes payable to governments
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