Item 5 – Fees and Compensation
A. For its discretionary advisory services, the Registrant charges one or more fees to ATRMFF
that are based on a percentage of net assets under management (collectively, such fees are
referred to as “Management Fees”). The Management Fees are payable monthly in advance
by each investor of ATRMFF. The Management Fees are based on the market value of the
assets under management as of the first business day of the current calendar month. Fees
are prorated for investments that are at times other than the start of a calendar month. The
applicable Management Fee schedule is described in the offering memoranda. Further, the
Registrant has the right to receive an administrative fee (the “Administrative Fee”) at the
rate of $175,000 per annum from ATRMFF.
The Registrant also receives an incentive allocation (the “Performance Fee”) as discussed
further in Item 6, and a flat fee for consulting services from non-investment advisory
clients, as further discussed in Item 10.
It is important to note that the Sub-Advisers of ATRMFF (as defined in Item 4.B.) generally
charge monthly management fees that are measured by a percentage of the value of the
assets they manage. In addition, such Sub-Advisers generally receive annual incentive fees
or performance fees based on both realized and unrealized appreciation in the value of the
assets under management.
For its non-discretionary advisory services, the Registrant receives a pre-determined
monthly fee payable after the beginning of the applicable month. The Registrant may also
receive an annual fee for services provided within 60 calendar days after each calendar year
end.
B. The Registrant deducts fees from discretionary assets. Specifically, ATRMFF pay the
Registrant a Management Fee and Administrative Fee by debiting the capital account of
each investor on a monthly basis.
In its non-discretionary capacity, the Registrant will receive the fees as stated in the
governing agreement.
C. ATRMFF pays the Registrant for the following costs and expenses incurred by or on behalf
of ATRMFF or for its benefit, including, but not limited to:
• all legal, accounting and auditing costs and expenses;
• all management, incentive, or other fees payable to the Sub-Advisers of
ATRMFF;
• all expenses associated with negotiating and entering into contracts and
arrangements in the ordinary course of ATRMFF business;
• all expenses of consultants or other service providers retained by ATRMFF to assist
it in maintaining ATRMFF books and records and complying with applicable laws
and regulations;
• all costs and expenses incurred for the purpose of protecting or enhancing the value
of ATRMFF assets (including the costs of instituting or defending lawsuits);
• all costs incurred through special purpose vehicles, including any organizational or
operating expenses of such special purpose vehicles, or ATRMFF pro rata share
thereof;
• all investment-related costs and expenses incurred by ATRMFF in connection with
the investment of its assets within (or outside) the Managed Accounts (including
but not limited to brokerage commissions, clearing fees, and exchange fees);
• all interest on ATRMFF borrowings (on margin or otherwise);
• all insurance and bonding costs;
• all fees or assessments in connection with any regulatory registrations,
qualifications and/or approvals of ATRMFF;
• all costs of preparing and distributing reports and statements to investors;
• all filing fees, regulatory fees and recording fees; and
• extraordinary expenses, such as indemnification and litigation expenses.
Additionally, funds that invest in Underlying Funds will incur a share of expenses of any
Underlying Fund in which it invests. Some Underlying Funds may have significant
operating expenses. Please refer to the offering memoranda for a complete understanding
of fees and expenses. The information contained herein is a summary only and is qualified
in its entirety by the offering memoranda.
ATRMFF will incur brokerage costs. See Item 12 – Brokerage Practices. Strategies utilized
by certain Sub-Advisers may require frequent trading, and, as a result, portfolio turnover
and brokerage commission expenses may significantly exceed those of other investment
entities of comparable size.
ATRMFF are not obligated to reimburse the Registrant for its own general, administrative
or operating costs.
D. The Management Fees and the Administrative Fee for ATRMFF are payable monthly in
advance by each investor of ATRMFF, as discussed above in Item 5.B. Accounts initiated
or terminated during the relevant periods will be charged a pro-rated fee.
E. Neither the Registrant nor any of its supervised persons accepts compensation for the sale
of securities or other investment products, including asset-based sales charges or service
fees from the sale of mutual funds.