RV Capital AG

​Fees and Compensation​
​ ees will be charged to all clients in accordance with the relevant investment management​
F
​agreement. Segregated mandate clients are generally charged a scaled management fee of up to​
 ​1% and an annual incentive fee of up to 12.5% subject to a hurdle. There are no other sources of​
  ​revenues from these client accounts directly managed by RVC. In addition, RVC receives fixed or​
   ​incentive fees, or a combination of both, from its advisory mandates. The fixed fee is typically​
    ​1% and the incentive fee is 10% subject to a hurdle rate of 6%, but fees are negotiable on a client​
     ​by client basis.​

​ ccounts are billed quarterly in advance for the management fee and annually in arrears for the​
A
​incentive fee. Part of the incentive fee may be retained by the clients in a contingent capital​
 ​account.​

​Performance Based Fees and Side-by-Side Management​
​ VC charges performance based fees to certain clients in accordance with the relevant​
R
​investment management agreement. These fees may create an incentive for RVC to make​
 ​investments on behalf of those clients that are riskier or more speculative than would be the case​
  ​in the absence of such an arrangement. Such fee arrangements may also create an incentive for​
   ​RVC to favor the client accounts paying incentive fees over accounts that are assessed an asset​
    ​based fee only in the allocation of investment opportunities.​

​ VC maintains an allocation policy and procedures which are designed to ensure that allocations​
R
​are made on a fair and equitable basis. As far as practicable, where two or more clients are equally​
 ​suited to a type of investment opportunity and able and willing to participate, RVC will allocate​
  ​such investment equitably in order to ensure that each client has equal access to the same quality​
   ​and quantity of the investment opportunities that are deemed appropriate for the investment​
    ​strategy.​

​Types of Clients​
 ​ VC​ ​provides​ ​investment​ ​management​ ​services​ ​to​ ​institutional​ ​clients​ ​directly​ ​via​ ​segregated​
 R
 ​mandates​ ​and​ ​private​ ​funds.​​RVC​​also​​advises​​three​​EU-based​​funds.​​RVC​​advises​​the​​advisory​
​accounts on a non-discretionary basis. The funds are not available to investment by US persons.​

​Methods of Analysis, Investment Strategies and Risk of Loss​
​ VC​​pursues​​a​​value​​oriented​​strategy​​which​​invests​​globally​​in​​publicly​​listed​​equities​​when​​they​
R
​are​ ​trading​ ​at​ ​a​ ​discount​ ​to​ ​the​ ​advisor’s​ ​assessment​ ​of​ ​fair​ ​value.​ ​The​ ​composition​ ​of​ ​client​
                                                             ​3​

​accounts​ ​can​ ​differ​ ​depending​ ​on​ ​the​ ​timing​ ​of​ ​cash​ ​flows,​ ​the​ ​availability​ ​of​ ​investment​
​ pportunities, and differing investment guidelines.​
o

 ​ VC​​seeks​​to​​invest​​in​​companies​​that​​provide​​a​​superior​​return​​from​​owning​​them​​rather​​than​
 R
 ​trading​​them​​and​​takes​​a​​long-term​​perspective​​on​​investing.​ ​The​​strategy​​focuses​​on​​valuation​​in​
  ​terms​ ​of​ ​owner​ ​returns,​ ​made​ ​up​ ​of​ ​the​ ​dividend​ ​yield​ ​and​ ​earnings​ ​growth,​ ​rather​ ​than​ ​fair​
   ​values​ ​at​ ​which​ ​a​ ​business​ ​can​ ​be​ ​sold.​ ​RVC​ ​allocates​ ​an​ ​enormous​ ​amount​ ​of​ ​time​ ​to​
    ​understanding​ ​a​ ​company​ ​before​ ​making​ ​an​ ​investment​ ​in​ ​it.​ ​The​ ​research​ ​process​ ​includes​ ​a​
     ​review​​all​​the​​public​​information​​available,​​in​​particular​​the​​annual​​reports,​​visiting​​the​​company​
      ​and​ ​its​ ​main​ ​sites,​ ​meeting​ ​with​ ​the​ ​management,​ ​often​ ​several​ ​times,​ ​and​​speaking​​with​​other​
​industry experts, competitors, and investors in the company.​

 ​ he​ ​portfolios​ ​of​ ​RVC’s​ ​clients​ ​tend​ ​to​ ​be​ ​concentrated​ ​in​ ​a​ ​small​ ​number​ ​of​ ​positions.​ ​In​
 T
 ​addition,​ ​the​ ​nature​ ​of​ ​the​ ​investment​ ​strategy​ ​pursued​ ​by​ ​RVC​​will​​involve​​certain​​other​​risks​
​and RVC will utilize investment techniques which may carry additional risks.​

​General Risks​

 ​ oncentration​ ​of​ ​the​ ​portfolio​​-​ ​RVC​ ​employs​ ​a​ ​concentrated​ ​portfolio​ ​strategy.​ ​While​
 C
 ​diversification​​does​​not​​guarantee​​against​​a​​loss,​​diversification​​is​​considered​​to​​be​​an​​advantage​
  ​to​ ​minimising​ ​the​ ​risk​ ​of​ ​loss​ ​of​ ​a​ ​majority​ ​or​ ​the​ ​whole​ ​investment.​ ​RVC​ ​generally​ ​does​ ​not​
   ​hedge.​ ​Inflation​ ​risk​ ​is​ ​reduced​ ​by​ ​investing​ ​in​ ​companies​ ​with​ ​strong​ ​pricing​ ​power​ ​and​ ​low​
    ​reinvestment​ ​requirements.​ ​Currency​ ​risk​ ​is​ ​not​ ​hedged.​ ​Liquidity​ ​risk​ ​is​ ​mitigated​ ​by​ ​having​
     ​strong​ ​client​ ​relationships​ ​through​ ​being​ ​as​ ​transparent​ ​as​ ​possible​ ​about​​the​​way​​the​​manager​
​invests and the likely volatility to be expected.​

​Operating History:​​The past performance of RVC may​​not be indicative of future performance.​

 ​ ependence​​on​​Key​​Individuals​​-​​The​​success​​of​​the​​investment​​programs​​with​​RVC​​depends​​on​
 D
 ​the​​ability​​of​​RVC’s​​key​​members​​of​​its​​investment​​team​​to​​develop​​and​​implement​​strategies​​that​
  ​achieve​ ​the​ ​Client’s​ ​investment​ ​objective.​ ​As​ ​RVC​ ​only​ ​has​ ​two​ ​executive​ ​employees​ ​and​ ​one​
   ​non-executive​ ​board​ ​member,​ ​if​ ​RVC​ ​were​ ​to​ ​lose​ ​the​ ​services​ ​of​ ​any​ ​of​ ​these​ ​members,​ ​the​
    ​consequence​ ​to​ ​the​ ​Clients​ ​and​ ​investors​ ​could​ ​be​ ​material​ ​and​ ​adverse​ ​and​ ​could​ ​lead​ ​to​
​premature termination of the applicable account.​

 ​ eneral​ ​Economic​ ​and​ ​Market​ ​Conditions​​-​ ​The​ ​success​ ​of​ ​RVC’s​ ​activities​ ​will​​be​​affected​​by​
 G
 ​general​ ​economic​ ​and​ ​market​ ​conditions,​ ​such​ ​as​ ​interest​ ​rates,​ ​availability​ ​of​ ​credit,​ ​credit​
  ​defaults,​ ​inflation​ ​rates,​ ​economic​ ​uncertainty,​ ​changes​ ​in​ ​laws​ ​(including​ ​laws​ ​relating​ ​to​ ​the​
   ​taxation​​of​​investments),​​trade​​barriers,​​currency​​exchange​​controls,​​and​​national​​an​​international​
    ​political​ ​circumstances​ ​(including​ ​wars,​ ​terrorist​ ​acts​ ​or​ ​security​ ​operations).​​These​​factors​​may​
     ​affect​ ​the​ ​level​ ​and​ ​volatility​​of​​investments’​​prices​​and​​the​​liquidity​​of​​the​​Client’s​​investments.​
      ​Volatility​ ​or​ ​illiquidity​ ​could​ ​impair​ ​the​ ​Client’s​ ​profitability​ ​or​ ​result​ ​in​ ​losses.​ ​Client​ ​accounts​
       ​may​​maintain​​substantial​​trading​​positions​​that​​can​​be​​adversely​​affected​​by​​the​​level​​of​​volatility​
​in the financial markets- the larger the positions, the greater the potential for loss.​

 ​ urozone​​-​ ​In​ ​light​ ​of​ ​recent​ ​market​ ​developments,​ ​it​ ​is​ ​possible​ ​that​ ​a​ ​country​ ​may​ ​leave​ ​the​
 E
 ​Eurozone​ ​and​ ​return​ ​to​ ​a​ ​national​ ​currency​ ​and,​​as​​a​​result,​​may​​leave​​the​​EU​​and/or​​that​​the​
  ​Euro​​will​​cease​​to​​exist​​in​​its​​current​​form​​and/or​​lose​​its​​legal​​status​​in​​one​​or​​more​​countries​​in​
   ​which​ ​it​ ​currently​ ​has​ ​such​ ​status.​ ​The​ ​effect​ ​of​ ​such​ ​potential​ ​events​ ​on​​the​​Clients​​is,​​at​​this​
​stage, impossible to predict with any certainty.​

                                                                  ​4​

 S​ ystemic​ ​Risk​​-Credit​ ​risk​ ​may​ ​arise​ ​through​ ​a​ ​default​​by​​one​​of​​several​​large​​organisations​​that​
  ​are​ ​dependent​ ​on​ ​one​ ​another​ ​to​ ​meet​ ​their​ ​liquidity​ ​or​​operational​​needs,​​so​​that​​a​​default​​by​
   ​one​​institution​​causes​​a​​series​​of​​defaults​​by​​the​​other​​institutions.​​This​​is​​sometimes​​referred​​to​
    ​as​ ​a​ ​“systemic​ ​risk”​ ​and​ ​may​ ​adversely​​affect​​financial​​intermediaries,​​such​​as​​clearing​​agencies,​
​clearing houses, banks, securities firms and exchanges, with which RVC interacts on a daily basis.​
...