ITEM 5 – FEES AND COMPENSATION
A Management Fees
Funds
Currently, QIEF has only one fund, the Q India Fund Limited PCC (formerly known as Q India Equity
Fund Limited) (the “Fund” or “India Equity Fund”), to whom we provide discretionary advisory services
and the Fund pays us a management fee, based on the fund’s net asset value (“NAV”) as of the fee
calculation date. This management fee is calculated on a weekly basis and on the last trading day of a
month. The said fee is charged in arrears on a monthly basis.
The fee rate that we charge from the Fund under the Q India Equity Value Strategy is same as charged
for Private Account Clients, as stated in below table. Fee rates for the Funds are not generally
negotiable.
Private Accounts
Our standard fee schedule for the “Discretionary Advisory Services under the “Q India Equity Value
Strategy” for Private Account clients is as follows:
NAV Rate per annum as
a % of NAV
On the first USD 100 million 1%
On the next USD 100 million 0.90%
On the assets in excess of USD 200 million 0.80%
Our standard fee schedule for the Discretionary Advisory Service under the “Q India
Responsible Returns Strategy” for Private Account clients is as follows:
NAV in Client Account Fixed Fee Structure, (As % of Variable Fee Structure
NAV p.a) (As % of NAV p.a)
On the first USD 50 mn 0.6% 0.5% Fixed Fee + Performance
Fee
On the next USD 50 mn 0.5% 0.4% Fixed Fee + Performance
Fee
On the assets in excess USD 0.4% 0.3% Fixed Fee + Performance
100 mn Fee
QIEF Management LLC Part 2A of Form ADV
Performance Fee – 10% of outperformance over MSCI India Index, calculated annually. Levy of
performance fee shall be subject to the Firm complying with applicable laws in case of US Based
Clients, levy of performance fee shall be subject to Section 205(a)(1) pf the Investment Advisers Act
1940 and Rule 205-3 of the Investment Adviser Rules 1940.
Our Equity-India Focused Private Account clients will be charged the management fees quarterly in
arrears. These management fees shall be calculated by applying our rate schedule (described above)
to either (i) the NAV of the Private Account on the last trading day of each calendar quarter; or (ii) the
average of the NAV of the Private Account at the end of each month in the calendar quarter.
For those Equity-India Focused Private Accounts that are open for only part of a calendar quarter, we
will prorate our fees based on the number of days that the Private Account is open in that quarter.
We will invoice our Equity-India Focused Private Account clients quarterly in arrears for payment of
our management fees.
Our standard fee schedule for the “Discretionary Advisory Services under the “Q India
Sovereign Focus Bond Strategy” for Private Account Clients is as follows:
NAV Fees per annum as % of
NAV
On the first US $ 100 million 0.25%
On the assets in excess US $ 100 million 0.20%
Our Fixed Income-India Focused Private Account clients will be charged management fees monthly in
arrears. The management fees shall be calculated based on the NAV of the Private Account on the last
trading day of each calendar month. For those Fixed Income-India Focused Private Accounts that will
be open for only part of a calendar month, we shall prorate our fees based on the number of days
that the Private Account will be open in that month.
B. Upon receipt of a management fee invoice, our Private Account clients may either pay the fees
directly to us, or they may authorize and direct the qualified custodian of the Private Account to
disburse funds to us from the Private Account.
The foregoing is only a description of our standard fee arrangements, and in some cases, we may
negotiate our fees with individual Private Account clients. In particular, we may agree to charge
individual Private Account clients management fees according to a rate schedule that is different from
the schedules described above, and we may also agree with clients to charge performance-based fees
QIEF Management LLC Part 2A of Form ADV
(that is, fees based on a share of capital gains on, or capital appreciation of, the client’s assets that we
manage). To the extent that fees are negotiated as indicated above, some clients may pay more, or
less, than other clients for the same management services. If we charge USA based clients’
performance-based fees, we will do so in a manner that complies with the Investment Advisers Act
1940, as amended, and relevant SEC rules (including Rule 205-3).
C. Other Expenses
In addition to our fees, each of our clients may also incur certain expenses related to the management
and operation of the client’s account and the purchase, sale, or transmittal of the client’s assets that
we manage. These expenses include, among other things:
• brokerage commissions and other investment transaction costs
• custodial and sub-custodial fees;
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