ITEM 5 - Fees and Compensation
A. Advisory Fees & Compensation
Setanta will be delivering this brochure only to “qualified purchasers” as defined in section 2(a)(51)(A)
of the Investment Company Act of 1940.
Setanta’s management fees are set forth in the investment management agreement between Setanta
and the client. Setanta generally charges management fees to clients in accordance with its
standard fee schedules in effect when the agreement is signed. However, management fees are
negotiated with some clients, so fees can vary from the standard schedules. Fees, minimum account
sizes, and fee breakpoints may be negotiated or modified in Setanta’s discretion based on factors such
as asset class, pre-existing fee schedules, account size and overall size of the client relationship,
portfolio complexity and customization requests (such as specific investment restrictions requested
by the client that cause the account to differ from similar accounts managed at Setanta), service
requirements (such as reporting and information requests), the country or market in which a client is
located, affiliate status, or other factors.
B. Payment of Fees
Setanta’s compensation for its investment advisory services is based on the market value of a client’s
account at specified month/quarter ends. Generally, management fees are billed to the client and are
payable quarterly in arrears.
Valuation of Portfolio Assets in Calculating Fees
For billing purposes, the market values of clients’ accounts will be determined on a basis agreed with
the client. Market values are generally determined by publicly available prices (such as equity closing
prices), third party pricing sources, or broker dealer prices.
Termination
The terms and conditions of Setanta’s services are specified in the investment management agreement
between Setanta and the client. The investment management agreement generally allows either the
client or Setanta to terminate it at any time on written notice, and within a defined notice period
(typically 3 months).
If any advisory relationship terminates other than the end of the specified period (e.g.,
monthly/quarterly) used to determine the market value of the account for the purposes of calculating
compensation, fees will be pro-rated and an adjustment made by Setanta unless otherwise agreed.
C. Additional Fees and Expenses
Investment in a portfolio of securities and other investments involves various costs, such as
commissions, taxes, and custody and accounting charges. For separate accounts and sub advised
clients, the custodian or administrator, not Setanta, charges each of these expenses (other than
commissions) directly to the portfolio.
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In addition to Setanta’s management fee, clients may incur additional costs which are levied by
third parties, but which relate to the management of the account. Such additional costs include but
are not limited to; VAT (Sales tax) if relevant, custody costs, administration costs, accounting costs,
trading costs arising on transactions, and voting costs were agreed by the client.
Clients are responsible for charges imposed by third parties other than Setanta. Generally, third
parties will levy these charges directly to the client and Setanta does not know the amounts of these
expenses. For more information, clients should contact their service providers directly.
D. Prepayment of Fees
Setanta does not require prepayment of management fees.
E. Additional Compensation
Neither Setanta nor any of its supervised persons accept any compensation for the sale of securities
or other investment products.
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