ITEM 5: FEES AND COMPENSATION
A. Advisory Fees and Compensation
NAM UK’s fee schedule is omitted because the brochure is delivered only to qualified purchasers as defined in
the Investment Company Act of 1940, as amended (“1940 Act”).
B. Payment of Fees
We receive asset-based management fees from our clients. All management fees are subject to negotiation.
Fee structures may be modified where a new account is expected to grow rapidly, where a relationship
already exists with a current client or where the client retains NAM UK to provide services with respect to
multiple investment mandates. We may, in our sole discretion, reduce and/or waive management fees for a
client at any time.
The specific manner in which advisory fees are charged is established in the client’s written agreement.
Clients are generally billed on a quarterly basis, although fees for various fund vehicles are often paid
monthly. Clients may elect to be billed in advance or in arrears. NAM UK does not directly debit fees from its
NAM USA sub-advised client accounts.
Management fees shall be prorated for each capital contribution and withdrawal made during the applicable
billing period (with the exception of de minimis contributions and withdrawals). Accounts initiated or
terminated during a billing period will be charged a prorated fee.
NAM UK’s services may be terminated pursuant to the provisions of each advisory contract. The termination
provisions of any particular contract are subject to negotiation. If a client pays fees in advance, any prepaid,
unearned fees will be promptly refunded, and any earned, unpaid fees will be due and payable.
Where agreed with individual clients and confirmed in the agreement, NAM UK may also manage accounts
that provide for compensation on the basis of a share of the capital gains upon, or the capital appreciation of,
the client’s assets (a “performance fee”). Performance fees may be billed quarterly, semi-annually or annually.
Please see Item 6 below for further discussion of Performance Fees.
Sub-Advisory Fees
NAM USA charges asset-based management fees (“management fees”) for all its North American clients. NAM
USA pays NAM UK its sub-advisory fees, directly or indirectly, out of the management fee NAM USA receives
from those clients sub-advised by NAM UK. To the extent that performance fees are paid to NAM USA for a
particular account, NAM USA pays NAM UK its portion out of the fees NAM USA receives from those clients
sub-advised by NAM UK.
C. Additional Fees and Expenses
NAM USA’s fees (a portion of which may be paid to a sub-adviser, such as NAM UK), are exclusive of brokerage
commissions, transaction fees, and other related costs and expenses which shall be incurred by the client.
Clients may incur certain charges imposed by custodians, brokers, and other third parties, such as custodial
fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund
Nomura Asset Management U.K. Limited
Form ADV Part 2A – June 23, 2022
SEC File Number 801-25922 – CRD Number 110815
fees, and other fees and taxes on brokerage accounts and securities transactions. Pooled investment vehicles
also charge internal operational fees, which are disclosed in a fund’s prospectus.
Item 12 describes the factors that NAM UK considers in selecting or recommending broker-dealers for client
transactions and determining the reasonableness of their compensation (e.g., commissions).
D. Prepayment of Fees
North American clients of NAM UK do not pre-pay fees.
E. Additional Compensation and Conflicts of Interest
NAM UK may invest client assets in money market funds, exchange traded funds or other types of fund
vehicles managed by our affiliates or by a third party. In these instances, any charge in addition to the
management fee and any performance fee paid, relating to investments in these fund vehicles will generally
be waived.
If you invest in a fund vehicle that we manage under a direct or a sub-advisory arrangement, please refer to
the fund’s offering memorandum, subscription agreements and other offering documents for
additional/supplementary information on the fund, including its fees and expenses.
Nomura Asset Management U.K. Limited
Form ADV Part 2A – June 23, 2022
SEC File Number 801-25922 – CRD Number 110815