ITEM 5: FEES AND COMPENSATION
A. Advisory Fees and Compensation
NGA’s investment management fees generally depend on the services provided and are typically expressed as
a percentage of net assets under management and may be subject to negotiation. Fee arrangements are based
on a number of different factors including, but not limited to: investment mandate, services performed, client
relationship and account size. To the extent permitted by law, NGA may also charge a performance fee.
B. Payment of Fees
The specific manner in which NGA charges fees is established in the client’s written agreement with NGA.
NGA generally bills its fees 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. We do not directly debit fees from client
accounts.
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 the registrant to provide services with respect
to multiple investment mandates.
The differing levels of basic fees across investment types take into account such factors as the degree of
investment management activity and supervision required, the nature of the discretionary or non-
discretionary service provided and the types of investment guidelines and restrictions imposed upon the
management of the accounts. In addition, there may be specialized investment strategies with individualized
fee arrangements in place as well as historical fee schedules with long-standing clients that may differ from
those applicable to new client relationships. We may, in our sole discretion, reduce and/or waive
management fees for a client at any time.
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. Our 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.
NGA also manages accounts that provide for additional 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 on performance
fees.
Pooled Investment Vehicles
NGA acts as investment adviser to private funds. Our fees for such services are based on each investment
vehicle’s particular circumstances. NGA generally receives a management fee and a performance fee for
Nomura Global Alpha LLC
Form ADV Part 2A - June 24, 2019
SEC File Number 69212 – CRD Number 147302
management of private funds. The amount of the management fee and performance fee varies from vehicle to
vehicle and is set forth in the prospectus or other relevant offering document for each fund. In certain cases,
investors may receive fee reductions of all or a portion of the management fees and/or performance fees
attributable to an investor’s interest in the pooled investment vehicle. Each fund also ordinarily bears
additional expenses (including organizational and operating expenses).
If you invest in a pooled investment 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.
C. Additional Fees and Expenses
Our fees 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 fees, and other fees and taxes on brokerage accounts and securities transactions.
Item 12 describes the factors that NGA considers in selecting or recommending broker-dealers for client
transactions and determining the reasonableness of their compensation.
D. Prepayment of Fees
Clients may pre-pay fees pursuant to their investment management agreement.
E. Additional Compensation and Conflicts of Interest
Underlying Fund Fees
NGA may invest client assets in money market funds or other types of collective fund vehicles managed by
our affiliates or by a third party. In addition to NGA’s management fee and any performance fee, clients will
also incur, relative to investments in such funds, normal expenses and advisory fees imposed by the funds
held in the account, as well as other fees charged by the vehicle, if any.
Compensation received by NGA and its affiliates related to various services to pooled investment vehicles
generally will be retained by NGA and its affiliates. Except to the extent required by applicable law, we are not
required to offset such compensation against fees and expenses a client may otherwise owe to NGA and its
affiliates.
Compensation for the Sale of Private Fund Securities
Several employees of our affiliate are registered securities representatives of Nomura Securities
International, Inc. (“Nomura Securities”), an affiliated broker-dealer registered with the SEC and a member of
the Financial Industry Regulation Authority ("FINRA").
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