Item 5 - Fees and Compensation
Fees for Separately Managed Accounts
The fee for Sunrise’s advisory services for separately managed accounts is based on a
percentage of the assets under management and is set forth in the following fee
schedule:
Assets Under Management Annual Fee
All assets 0.50% to 2.00%
The fee arrangement, termination, and refund policies are negotiated with each
separately managed account client prior to the commencement of advisory services
and are described in the client’s advisory agreement. The investment advisory fee will
vary, depending on the specific nature of the strategy managed by Sunrise, the type of
investment mandate and the needs of the client. As well, the billing and payment
method for advisory fees varies between securities accounts on the Interactive Brokers
platform and all other accounts. Accounts on the Interactive Brokers platform participate
in that platform’s ability to charge and pay advisory fees on a daily basis. The advisory
fee for all other accounts, including commodity futures accounts, is billed and payable
monthly in arrears based on the value of the account at the beginning of each month.
The initial billing period begins when an advisory agreement is signed by the client and
accepted by Sunrise. The advisory agreement stipulates that clients have fees directly
debited from their accounts. Clients also have the option to have their fees billed
separately, by making prior arrangements with Sunrise. If management begins after the
start of a month, fees will be prorated accordingly.
In addition to the asset management fees, certain separately managed commodity
futures accounts may pay Sunrise performance-based compensation, as discussed in
Item 6 below.
Fees for Private Investment Funds
Sunrise receives investment advisory fees that consist of an asset-based management
fee and a performance fee (also referred to as a "Special Allocation"). We charge the
Funds a management fee equal to an annual rate of 1.5 to 2.0%, payable monthly in
arrears. With respect to Fund(s) that are organized as a partnership for US federal income
tax purposes, we are eligible to receive an allocation each year generally equal to 20%
of the Fund's net new profit for the year, if any. With respect to the Fund(s) that are
organized as a corporation in a non-US jurisdiction, we are eligible to receive a fee each
year generally equal to 15% to 30% of the Fund's net new profit for the year, if any. All
performance fees and allocations are subject to a high-water mark.
Management fees are debited directly from the Fund. Investors receive quarterly
statements from the Fund’s Administrator that show the value of the Investor’s capital
account and the fees debited from the account. Sunrise may, in its discretion, rebate
fees to a limited number of employees and their families and certain select investors.
Note, to the extent an asset management fee is charged at the Feeder Fund level, it will
not be charged or allocated at the Master Fund level.
Fees for Sub-Advisory Services to Registered Investment Companies
Sunrise provides Sub-Advisory services to an exchange traded fund (ETF). Sunrise does not
receive a fee from the principal adviser for the services it provides to the ETF; Sunrise
receives compensation from its parent company SSG Holdings LLC, which shares in the
profits and losses of the Adviser through its fifty percent ownership position in the principal
adviser. Additional detail about the fees charged to an investor in the fund is available
in the prospectus and Statement of Additional Information ("SAI") available to clients prior
to making any investments.
Sunrise reserves the right, in its sole discretion, to negotiate and charge different advisory
fees for different accounts. Advisory fees may vary due to the specific details of the
strategy traded for the client’s account (including, for example, the costs and risks
associated with a particular strategy), the inception date of a client's account, the initial
or potential size of the account, the entirety of the client's and its affiliates' relationship
with Sunrise, and account‐specific requirements such as non‐standard reporting
obligations and compliance with laws not generally applicable to Sunrise's activities.
Accordingly, Sunrise may charge a higher or lower fee than the standard ranges of fees
set forth above. No asset management fee is charged with respect to the capital
account of the principals, employees and/or affiliates of Sunrise.
Lower fees for comparable services may be available from other sources.
Termination of Services
With respect to Fund interests, subject to certain conditions, an investor may redeem
some or all of his/her/its interests in a Fund upon 10 days’ written notice to the respective
Fund’s administrator. There are no redemption charges and such investor will receive the
proceeds from such redemptions within 30 days of the month end in which the
redemption takes effect.
With respect to separately managed accounts, clients may terminate the advisory
relationship at any time upon written notice to Sunrise and allowance to Sunrise of a
reasonable time to unwind in an orderly fashion any positions it may have invested in on
behalf of the terminating client.
In the event Sunrise's services are terminated by a client or Fund investor, its fees are pro‐
rated to the extent that its services have been provided for less than the full quarter.
Operational Expenses of the Funds
In addition to the management and incentive fees payable to Sunrise, 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,
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