Item 5 Fees and Compensation
How We are Compensated for Our Advisory Services
Power Sustainable’s fees for investment advisory services can include:
(1) management fees, expressed as a percentage of the Account’s assets under management;
(2) incentive allocations or performance fees, generally calculated as a percentage of the Account’s net capital
appreciation during the applicable period in compliance with applicable laws and to the extent agreed with
the Client; or
(3) a combination of the foregoing.
Our Fee Schedule
The Funds charge asset based fees as described in the applicable Offering Documents. Fees for separate account
management are negotiated individually with each Client and set forth in the advisory agreement or account
documentation for each respective Client. In either case, our fees can take into account the type of Client or advisory
arrangement and can change over time. As a result, similar Clients’ fees could differ as a result of the inception
dates of their respective advisory relationships with Power Sustainable.
In some cases, we maintain a basic fee schedule based on the investment mandate, Client type or advisory
arrangement. However, except with respect to certain Funds (and their Investors), we can negotiate fees for services
with a Client (or, in some cases, Investor) on an individual basis, including alternative fee arrangements, rather than
basing our fees on a general fee schedule. When we negotiate fees, we can take into consideration, among other
things, the investment mandate, total market value, regulatory requirements, reporting requirements, customization
of the investment or reporting process or other special considerations relevant to a particular Account. Similarly,
in appropriate circumstances, we can waive or reduce all or a portion of the fees we charge to a particular Client or
Investor in our sole and absolute discretion. For example, we can waive or reduce fees for Accounts held by or on
behalf of Power Sustainable and its employees, principals, shareholders or affiliates. Also, Power Sustainable or an
affiliate could, in its sole discretion, agree to bear certain operating expenses of a Fund that exceed a cap agreed
with the Fund Investors generally or applicable to the Fund as a whole.
Furthermore, Power Sustainable may enter into distribution agreements with distributors and fee rebate agreements
with certain investors in the Funds. Pursuant to these agreements, Power Sustainable may, in its sole discretion,
agree to pay the following out of the management fee which it has received from a Fund and which is attributable
to the distributor/investor: (a) trailer or retrocession fees to the distributors appointed by it; and (b) rebates to
investors based on the terms of the agreement entered into by Power Sustainable with such investor.
Thus, some Clients or Investors might pay more or less than others for the same or similar services depending, for
example, on account inception dates, fee negotiations or waivers, number of accounts or value of related accounts,
the nature of the mandate, total assets under management by Power Sustainable or the manner in which Power
Sustainable’s services are provided.
Payment schedules and mechanisms for U.S. Accounts are negotiated, and these Clients are invoiced in accordance
with such Account’s investment management agreement. Fees are generally paid in arrears and are ordinarily based
on the level of total assets under management within the relevant Account(s), including allocations to cash, on the
appropriate valuation day.
Additional Fees and Expenses
Except as otherwise agreed, each Account bears (and the fees described above do not include) the following costs
and expenses:
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• custodial charges,
• brokerage fees or commissions and related costs and expenses,
• taxes,
• duties and other governmental charges,
• transfer fees,
• registration fees and other expenses associated with the purchase, holding or sale of assets,
• costs and charges associated with making deposits in connection with foreign exchange transactions,
• taxes, including withholding taxes payable and required to be withheld by issuers, their agents and others,
• audit, administrative and other expenses associated with regulatory or tax compliance or investment
operations,
• legal fees, and
• such other expenses as are set forth in the Account’s relevant governing documents.
Our fees and the expenses Clients bear in connection with their Accounts will reduce the assets held in (and the
returns experienced by) an Account. No additional sales-based compensation or trails are paid to Power Sustainable
or any Power Sustainable supervised person for the sale of securities or other investment products, including asset-
based sales charges or service fees.
For Separately Managed Account Clients, the custodian or administrator, not Power Sustainable, charges each of
these expenses (other than commissions) directly to the portfolio, and, in many cases, Power Sustainable does not
know the amounts of these expenses. For more information, Clients may contact their service providers directly.
Funds advised by Power Sustainable also bear their own operating and other expenses. For investors in the Funds,
expenses noted above will be allocated and passed on to investors on a pro rata basis relevant to their ownership
in such Fund. Expenses which are attributable to multiple series or Funds will be allocated on a pro-rated basis
based on the weighting of each individual series or Fund and passed on to investors on a pro rata basis of their
ownership in the relevant series or Fund. Power Sustainable may, in its sole discretion, implement a fee cap in order
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