Item 5 - Fees and Compensation
The specific manner in which fees are charged by Price Asset Management is established in (a)
the private placement memorandum of the applicable Fund in which a client invests for
investors who invest in a privately offered commodity pool or fund, (b) the prospectus of the
mutual fund for investors who invest in such mutual fund, or (c) a client’s written
agreement with the Firm. The Firm will generally charge its management fees on a
monthly basis for its private funds and on a monthly or quarterly basis for its separate
account clients. Fees for its mutual fund are accrued daily and charged monthly.
Generally, fees are charged in arrears and are deducted directly from client accounts.
Management fees will be prorated for each capital contribution and withdrawal made during
the applicable billing period. Because of the customized nature of the separate account
program offered by the Firm, investors investing through such separate account programs
may be charged negotiated rates that differ from the rates charged to other separate accounts
or investors in commodity pools, private funds or mutual funds. Other fees, including incentive
or performance-based fees or allocations may be charged in certain investment products;
such other fees will be described in the applicable Fund or account documentation.
The Firm’s investment advisory or management fees are generally expressed as a
percentage of assets under management. The Firm typically charges a monthly
management fee at a rate that varies by Fund. The fees charged by the Firm for its
commodity pool offerings are set forth in the applicable offering documents. For its mutual
fund, PCS Commodity Strategy Fund, the Firm charges a monthly management fee at an annual
rate of 0.79%.
In addition to the management payable to the Firm, the investors in each of the Funds will bear
its pro rata costs and expenses related to its respective Fund’s investments, operations and
administration, including, without limitation: (i) interest expenses, (ii) other transactional
charges, (iii) expenses relating to cash management, (iv) legal, compliance, audit, accounting,
tax and custodial fees and expenses and (vi) fees and expenses of each Fund’s administrator.
Information regarding the specific fees and expenses charged to a client of the Firm are
available in the fund, pool or account documents or prospectus for such client. Item 12
further describes the factors that the Firm considers in selecting or recommending brokers
for client transactions and determining the reasonableness of their compensation (e.g.,
commissions).
The Firm offers investment advisory services to institutional and other clients through separately
managed accounts (“Separately Managed Accounts”). Separately Managed Accounts typically
bear certain expenses in addition to investment advisory fees, including custodial fees, brokerage
costs, trade correction costs, out‐of‐pocket costs for ERISA‐mandated fidelity bonds (if
applicable) or fees for plan administrator/Trustee‐directed special projects or reports. The Firm
receives no payment or remuneration from clients with respect to such other expenses (except
as described in Item 12-Brokerage Practices), and any such charges, fees and commissions are
exclusive of and in addition to the Firm’s advisory fees. No portion of such charges, fees or
commissions shall be applied as an offset to reduce the amount of advisory fees owed by a client
to the Firm.