Lloyd Capital LLC

Item 5 – Fees and Compensation

5.1   Compensation
Lloyd Capital’s fee for investment management services is based on the amount of AUM
managed for a Client. Standard fees are charged as a fixed percentage of AUM typically
range of 0.3% to 0.8% per annum subject to a minimum fee of CHF 2,500 for accounts held
by individuals and CHF 10,000 for accounts held by legal entities. In exceptional cases, Lloyd
Capital may offer performance-based fee arrangements (see also Item 6 – Performance-
based Fees and Side-by-Side Management). Fees are negotiable and may vary depending
on Client-specific factors, such as the size of the portfolio, family holdings or pre-existing
relationships, anticipated future business, the nature and complexity of the engagement,
the type of portfolio or even time and effort involved.
In order to reduce conflicts of interest, the aforementioned Advised Funds for which Lloyd
Capital or a related party acts as an investment manager or similar role, are explicitly
excluded from the AuM used as the benchmark for fee calculation. This is because Lloyd
Capital is already compensated for managing and/or advising said funds.

5.2   Valuations, Fee Calculation and Payment
Client Assets are valued by the custodian.

Lloyd Capital LLC                                                                Page 5
Weinbergstrasse 100 | CH-8802 Kilchberg | www.lloydcapital.ch

Lloyd Capital LLC
Form ADV Part 2A Brochure
Lloyd Capital calculates its fees using the valuation of assets established in the month-end
account statements provided by each Client’s custodian. Lloyd Capital does not generally
independently verify the valuation of assets reported by the custodian. If a custodian’s
valuation is inaccurate or is later revised, advisory fees charged to Clients based on that
valuation may be higher or lower than they would have been using a different valuation, and
the Client could pay more in advisory fees.
To mitigate this risk, Lloyd Capital applies the fee calculation methodology specified in the
client agreement and maintains controls around the fee calculation and invoicing process,
including review of calculations and invoices prior to issuance. Clients receive account
statements directly from their custodian and should review those statements carefully and
promptly notify Lloyd Capital of any suspected discrepancies.
Lloyd Capital’s fee calculation methodology and calculations are reviewed annually by our
external auditors.
The agreed fee is set forth in the respective client agreement. Annual fees are generally paid
on a quarterly basis in arrears, one-fourth of which is charged each quarter. The fee is
calculated based on the average AuM as of the last business day of each of the three months
in the preceding quarter. Where the calculated quarterly fee is less than 25% of the applicable
minimum fee, the minimum fee is charged in lieu of the calculated fee.
Exceptions may apply to the general fee calculation process, such as monthly rather than
quarterly invoicing, or a different method of averaging AuM. Such exceptions are agreed
upon individually by the client upon client request. In such cases, please consult the client
agreement for details on the fee calculation process.
Lloyd Capital does not require fees paid in advance.

5.3   Fee Payment and Proration
For accounts opened or closed during a quarter, fees are prorated to reflect only the period
during which the account was managed or advised by Lloyd Capital. Large Client
contributions or distributions during a quarter are considered on a case-by-case basis and are
generally also pro-rated.
Lloyd Capital will send the Client an invoice, detailing the amount of the fee. Information
concerning the value of the Assets on which the fee was based and the fee calculation itself
is provided upon request. The Client will instruct the Custodian to remit the fee to Lloyd
Capital after receipt of an invoice, since Lloyd Capital has no authority to deduct, transfer
or withdraw the fees itself. Upon termination of any account, any earned, unpaid fees will
be due and payable. Lloyd Capital does not charge a termination fee, unless otherwise
agreed in the Client Agreement.
Lloyd Capital reserves the right to charge a one-time account set up fee of CHF 1,500 for
personal accounts and of CHF 5,000 for legal entity accounts.

5.4   Other Fees
Clients incur charges imposed by custodians, brokers and other third parties utilized by Lloyd
Capital to trade or assist Lloyd Capital as we manage Assets. These fees include the
following: fees and commissions related to trade execution (see Item 12 – Brokerage
Practices below), foreign exchange and settlement charges, fees charged by the

Lloyd Capital LLC                                                                Page 6
Weinbergstrasse 100 | CH-8802 Kilchberg | www.lloydcapital.ch

Lloyd Capital LLC
Form ADV Part 2A Brochure
Custodian, deferred sales charges on pooled investment vehicles, odd-lot differentials,
transfer fees and taxes, wire transfer and electronic fund fees, safekeeping fees and other
fees and taxes on brokerage accounts and securities transactions.
Mutual funds and exchange traded funds also charge internal management fees, which
are disclosed in a fund’s prospectus.
Such charges, fees and commissions are exclusive of and in addition to Lloyd Capital’s fee,
and Lloyd Capital shall not receive any portion of these commissions, fees and costs.
In addition, Lloyd Capital may be asked to perform administrative work on behalf of the
Client that is outside the scope of the client agreement or Lloyd Capital’s usual course of
business as described in this Brochure and/or Client Agreement. This may include bespoke
or non-standard reporting, special analysis, coordination with a Client’s advisers (e.g. tax,
legal or accounting) beyond routine communications. Lloyd Capital may also be asked to
assist with ad hoc administrative or consulting services. Where such services are requested
...

7.1      Types of Clients
Lloyd Capital provides services to the following types of Clients:
     Individual Accounts;
     Trusts – entities set up by individuals to manage assets according to a stated mission or
      purpose;
     Corporations and Business Entities – taxable entities organized for a specific business
      purpose, investing cash reserves;
     Limited Partnerships – tax transparent investment structures for individuals;
     Pooled investment vehicles.
The breakdown of each type of client and the allocation of assets are set forth in our Form
ADV Part 1.
As reflected in Form ADV Part 1, a significant portion of Lloyd Capital’s regulatory assets
under management are attributable to pooled investment vehicles. These Advised Funds
currently account for more than 80% of Lloyd Capital’s regulatory assets under
management and are all non-U.S. pooled investment vehicles not offered to U.S. investors,
except to the extent permitted under applicable law.
In terms of number of clients, however, the majority of Lloyd Capital’s clients are wealth
management relationships in separately managed client accounts. The breakdown of
client types and related assets is reported in Form ADV Part 1 and is subject to change.

7.2      U.S. Persons / Non-U.S. Clients
With the exception of pooled investment vehicles, Lloyd Capital’s separately managed
client accounts are primarily U.S. persons, but still include a substantial number of non-U.S.
persons.

7.3      Account Minimum
Lloyd Capital does not have a fixed minimum account size. However, Lloyd Capital
recommends a $10,000,000 minimum investment in order to achieve proper diversification
and strategy deployment. Accounts of less than $10,000,000 will be reviewed and
accepted on a case-by-case basis.