Item 5 – Fees and Compensation
Performa charges management fees based on a percentage of assets under
management. The following description sets forth typical management fees charged to various
types of clients. Performa’s fees are generally payable quarterly in arrears and can be prorated
for those periods during a client’s initial funding as well as at termination. The advisor provides an
invoice for payment, and the client is encouraged to review the invoice to ensure the proper fee
calculation has been made. The basic oversight and asset allocation fee associated with
Performa’s management is:
Oversight & Advisory Fee (Multi Strategy)
0.300% per year on the first $20 million;
0.275% per year on the next $30 million;
0.225% per year on the next $50 million;
0.200% per year over $100 million.
Separately Managed Account (SMA) Fees:
Separately Managed Account (SMA) fees are calculated on the assets under
management for each client using a basis point level for various asset tiers. Performa’s fixed
income fees vary based on the mandate. Clients with Separately Managed Accounts are
responsible for paying their custodian’s fees and expenses. The advisor provides an invoice for
payment, and the client is encouraged to review the invoice to ensure the proper fee calculation
has been made.
Intermediate Fixed Income SMA
0.300% per year on the first $20 million;
0.250% per year on the next $30 million;
0.200% per year on the next $100 million;
0.150% per year over $150 million.
1-5 Year Fixed Income SMA
0.250% per year on the first $20 million;
0.200% per year on the next $30 million;
0.150% per year on the next $100 million;
0.125% per year over $150 million.
1-3 Year Fixed Income SMA
0.200% per year on the first $20 million;
0.175% per year on the next $30 million;
0.150% per year on the next $100 million;
0.125% per year over $150 million.
Cash/Money Market SMA
0.175% per year on the first $10 million;
0.150% per year on the next $40 million;
0.125% per year over $50 million.
Fund and Sub-Advisory Fees:
The basic oversight and asset allocation fee associated with Performa’s Fund
management is:
Oversight & Advisory Fee (Fund of Funds)
0.300% per year on the first $20 million;
0.275% per year on the next $30 million;
0.225% per year on the next $50 million;
0.200% per year over $100 million.
The funds bear their own costs and expenses, including investment, administrative,
trading, custody, legal, audit, tax, data costs, outside directors’ compensation, and regulatory filing
fees. To the extent the funds invest in exchange traded funds, the funds would be subject to
additional fees and expenses payable by such fund sponsors. Costs and expenses common to
one or more clients are paid pro rata by each client based on net asset value, invested capital,
the allocation of related time and services, or such other equitable basis as determined at the
discretion of Performa. The expenses incurred in connection with a transaction that is
consummated will be allocated among funds pro rata in accordance with their respective actual
investments or commitments in such investment opportunity, unless Performa determines that a
different allocation methodology would be more equitable. Any expenses incurred in connection
with a transaction that is not consummated will be allocated among the expected participants in
the investment pro rata in accordance with their respective expected investment or commitment
in such unconsummated investment opportunity. The clients incur brokerage and other
transaction costs when brokers are used in connection with their investments. For additional
information regarding brokerage practices, please see Form ADV, Item 12. Please refer to the
private placement memorandum of the applicable Performa fund for complete information on
expenses charged to that fund.
Fund Fees and Sub-Advisory Fees are calculated daily on the assets under management
for each fund using a basis points level for various asset tiers as outlined in the private placement
memorandum for each fund. Strategies and funds that use a Sub-Advisor will incur additional
investment management fees. To avoid a potential conflict of interest on the behalf of Performa,
where a client invests in multiple funds, Performa charges an oversight fee on the total assets
under management for each client. Each fund’s sub-advisor and/or ETF receives a management
fee as outlined in their respective offering documents. The advisor provides an invoice for
payment and the client is encouraged to review the invoice to ensure the proper fee calculation
has been made.
Performa does not accept compensation for the sale of securities or other investment
products.
Side Letters
In accordance with common industry practice, the general partner of a Performa fund has
the authority to enter into “side letters” or side agreements with certain investors in a Performa
fund whereby the general partner (an affiliate of Performa) grants individual investors specific
rights, benefits, or privileges not set forth in the Governing Documents, including economic
benefits. Such investor specific rights, benefits or privileges are not applicable to all investors and
therefore not available to all investors generally.