Item 5 – Fees and Compensation
Investment Company Fees and Compensation: The advisory and administrative fees payable by the Funds to
Natixis Advisors, under relevant contracts, are expressed as a percentage of assets under management or
administration and are individually negotiated. The fees billed by Natixis Advisors to the Funds are payable by
the Funds monthly in arrears. Natixis Advisors is responsible for the payment of fees to advisers and subadvisers
of the Funds, as applicable. Natixis Advisors pays such advisers and subadvisers a percentage of the fee paid to
Natixis Advisors by the relevant Fund.
Managed Account Fees and Compensation:
Bundled Program Fees & Compensation: Fees paid to Natixis Advisors for investment advisory services to
Bundled Program client accounts are negotiated between Natixis Advisors and the Bundled Program sponsor.
The client account minimum for a Bundled Program account is usually set by the Bundled Program sponsor.
A client in a Bundled Program will usually pay a bundled fee to the sponsor (either in advance or arrears),
calculated as a percentage of the client’s assets under management, which covers:
• Natixis Advisors’ investment advisory service fee;
• Custody fee from a Broker, dealer, sponsor firm trading venue, or other trading venue (collectively
“Brokers”) for transactions executed through the program sponsor or the program’s preferred
Broker;
• Accounting; and
• Sponsor due diligence and other applicable program services.
Bundled Program fees can vary depending on the Bundled Program and the investment strategy selected by
the client.
Unbundled Program Fees & Compensation: Fees paid to Natixis Advisors for investment advisory services to
Unbundled Program client accounts are set by Natixis Advisors and are provided under Appendix 3. These
fees do not include other fees that a client will incur, such as custody fees, brokerage fees, accounting fees,
sponsor due diligence fees, and other applicable program fees. Unbundled Program investment advisory
service fees vary depending on the investment strategy selected by the client. The client account minimum
(initial and ongoing) for Natixis Advisors’ Unbundled Program accounts is generally set by Natixis Advisors
and is $250,000, with exceptions granted on a case-by-case basis or as otherwise determined to be appropriate.
For Unbundled Program client accounts, Natixis Advisors reserves the right to waive or discount its investment
advisory service fee on certain client accounts, including employee or related client accounts, and to waive the
account minimum or other fee thresholds for any client accounts.
Client fees in Unbundled Programs are paid either directly to Natixis Advisors by the client (upon receipt of
an invoice from Natixis Advisors) or through the Unbundled Program sponsor, the client’s registered
investment adviser, or the client’s custodian (upon receipt of an invoice delivered by Natixis Advisors).
Additionally, the investment advisory fee can vary depending on the Unbundled Program and the investment
strategy selected by the client.
Model Portfolio Services Fees & Compensation: Fees paid to Natixis Advisors for its model portfolio
investment advisory services to Bundled and Unbundled Programs are negotiated between Natixis Advisors
and the program sponsor. The program sponsors (and not the participants) are clients of Natixis Advisors
when accounts are managed by or through a sponsor. The client account minimum for a program account that
is managed using Natixis Advisors’ model portfolio is set by the program sponsor.
A client will also incur additional fees depending on whether the program is bundled or unbundled, such as
custody fees, brokerage fees, accounting fees, sponsor due diligence fees, and other applicable program fees.
Model portfolio fees are paid by clients to the sponsor, which in turn compensates Natixis Advisors. The fee
received by Natixis Advisors will vary depending on the program and investment strategy selected by the
sponsor.
Billing and Terminations: Fees paid to Natixis Advisors are calculated as a percentage of assets under
management (for discretionary services) or as a percentage of assets advised (for non-discretionary services)
and are shown as annual percentages. Natixis Advisors may also be compensated through fixed fees, or fees
calculated as a percentage of a program sponsor’s fees. Natixis Advisors does not receive custody fees,
brokerage fees, accounting fees, or any other such fees. Fees are paid either quarterly or monthly and are billed
in accordance with the terms of the contractual relationship, either in advance or in arrears. Contracts with
program sponsors require at least sixty (60) days’ prior written notice of termination, unless otherwise stipulated
by contractual agreement. However, managed account clients that access Natixis Advisors’ services via
sponsors can generally terminate Natixis Advisors’ services immediately upon individual notice of termination
to Natixis Advisors or the sponsor. If investment advisory service fees are paid in advance, early termination
of a client account will result in a proportionate (i.e., pro-rata) return of such fees.
Model Portfolio Provider Fees & Compensation: When Natixis Advisors is responsible for retaining model
portfolio providers, Natixis Advisors compensates the model portfolio provider from the fee paid to Natixis
Advisors by the client or program sponsor, as applicable, which reduces the fees retained by Natixis Advisors.
Fee & Compensation Variation: Investment advisory services, fees, and account minimums vary from one
program to another. Natixis Advisors reserves the right, in its sole discretion, to waive its fees and account
minimum requirements, but cannot waive fees or account minimum requirements set by a third-party program
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