The Fund pays a Management Fee and an Outperformance Fee to the Investment Manager monthly on a per Participating Share basis. The Management Fee is equal to 0.5% per annum of the Fund’s Net Asset Value (“NAV”). If after deducting the Management Fee, the total return of the Fund is higher than the total return of the benchmark, being the MSCI ACWI, then an Outperformance Fee of 20% is charged on the excess return.
An Outperformance Fee is only charged when the Fund’s total return is higher than the benchmark’s total return, measured over any and all periods to date. The Investment Manager shall not be rewarded for idling on a rising market tide since Outperformance Fees are awarded only when the Fund’s investment objective is met and a high-water mark is in place to ensure that the Fund only pays once for outperformance. To further the alignment of interests with all shareholders of the Fund, the Investment Manager does not receive payment of the Outperformance Fee in cash; instead, the Investment Manager must use the monetary value of the Outperformance Fee to purchase additional Participating Shares in the Fund.
The Fund may permit subscriptions for Participating Shares on each Subscription Day (being the first calendar day of each month) by existing or new investors. The minimum initial subscription amount in the Fund is US$100,000 per investor.
Participating Shares are offered on each Subscription Day at the Net Asset Value per Participating Share on the Valuation Day (being the last calendar day of each month) immediately preceding the relevant Subscription Day.
To subscribe for Participating Shares:
- each prospective investor must complete and execute the Subscription Form (as attached in the Offering Memorandum) and return it to the Fund along with the necessary supporting documentation no later than 3pm (Cayman Islands time) fifteen calendar days prior to the Subscription Day;
- the completed Subscription Form and supporting documentation must be approved by the Investment Manager and Administrator prior to the Subscription Day; and
- the prospective investor must ensure that subscription amounts in cleared funds are received by the Fund prior to the Subscription Day.
A holder of Participating Shares may redeem some or all of his Participating Shares as of each Redemption Day (being the first calendar day of each month) at the Net Asset Value per Participating Share as at the immediately preceding Valuation Day (being the last calendar day of each month) provided that a completed and executed Redemption Notice (as attached in the Offering Memorandum) is received by the Fund no later than 3pm (Cayman Islands time) at least fifteen calendar days prior to the proposed Redemption Day.
An Early Redemption Charge of up to 5% of redemption proceeds will be imposed for any redemption of a Participating Share on or before the expiry of the third Anniversary Year of the issue of such Participating Shares. The proceeds of such Early Redemption Charge, if imposed, will be retained for the benefit of the Fund.
Voluntary Annual Donation
Robert and Louise Tate, the Founders of the Investment Manager, have, in their absolute sole discretion, elected to make Voluntary Annual Donations, equal to 5% of the Management Fee earned in any given Fiscal Year, to pre-selected charities which help the poor, the sick and or the environment.
The Voluntary Annual Donation may be made by the Founders at their discretion, from their personal capital, after the Fund’s Fiscal Year End and may be reported in the Fund’s audited annual financial statements. The purpose of the Voluntary Annual Donation is to augment long-term sustainable motivation because the Founders believe that devoting a portion of their fee income to earnest causes will supplement their incentives and fulfilment in alignment with the creation of wealth for the Fund and all Shareholders.
The Founders have no obligation to make any voluntary donation and they may increase, decrease, suspend or cancel the Annual Voluntary Donation at their absolute sole discretion. The Founders have absolute discretion on which charities are selected and in what proportion the Voluntary Annual Donation may be allocated.