Item 5 – Fees and Compensation
The Partnership charges a 1% management fee in addition to a performance allocation
described in detail in the Private Placement Memorandum (PPM), available upon
request. Please consult the PPM for an extensive explanation of fees.
Shorepath Capital Management LLC
Shorepath Capital Management LLC charges a 1% investment management fee of a
client’s assets under management in separate accounts. In limited circumstances, the
investment management fee is negotiable depending on many factors including but
not limited to the size of the account, the aggregate value of related accounts, the
nature of the relationship, the complexity of the services provided and other factors.
The specific manner in which fees are charged by Shorepath Capital Management LLC
shall be established in a client’s written agreement with Shorepath. Shorepath
reserves the right to negotiate the fee with its clients and may charge a higher or lower
fee than the fee described herein.
In general, Shorepath bills separate account clients quarterly in arrears of services
rendered, based on a calendar quarter. For accounts opened during a quarter, the
initial fee shall be pro-rated. Any client has the right to terminate the investment
contract without penalty within thirty days after entering into the contract. In the
event a client terminates their account with Shorepath, all fees would be pro-rated.
Payment of Shorepath’s investment management fees will be deducted from each
client’s account on a quarterly basis by their custodian and paid directly to us, unless
otherwise directed in writing by a client. The consent for deduction of fees is generally
contained in the written agreement the client enters into with Shorepath. Clients’
custodians will deliver a periodic (at least quarterly) account statement directly to
clients. The statements will include all transactions that took place in the account
during the period covered and reflect any fees deducted and paid to us. Clients are
encouraged to review their account statements for accuracy and compare them to the
reports received by Shorepath. Should there be any discrepancies Clients’ should rely
on the information in their custodian’s account statement
Shorepath Capital Management LLC’s anticipated fees are exclusive of transaction
fees, and other related costs and expenses which shall be incurred by separately
management account clients. Clients may incur certain charges imposed by
custodians, brokers, third party investment and other third parties such as fees
charged by managers, custodial fees, deferred sales charges, odd-lot differentials,
transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on
brokerage accounts and securities transactions. Such charges, fees and commissions
are exclusive of and in addition to Shorepath’s fee.
In Illinois, unless a client has received the firm’s disclosure brochure at least 48 hours
prior to signing the investment advisory contract, the investment advisory contract
may be terminated by the client within five (5) business days of signing the contract
without incurring any advisory fees.