The subscription costs are 0.5% of the participation sum, whilst the exit fee amounts to 0.5% of the
redemption sum. There is also a fixed management fee of 0.5% of the invested
capital per quarter (2% per year). This is automatically processed in the NAV calculation, and you
will not receive an invoice for this. In the case of a performance
exceeding 1.5% per quarter, a performance fee of 20% (15% in case of a
Subscription of EUR 1,000,000 or more) will be charged for all returns
over 1.5%. You will never be invoiced for these costs. They will be deducted from the value of your holdings (participations).
Unlike an index-tracking fund, the Commodity Discovery Fund itself conducts a great deal of research into the companies in which it invests. This entails a lot of (research) costs. These are paid from the management fee of 2% (1.5% with a deposit from € 1 million) per year. Other costs such as office rent, personnel and promotion are also paid from this. Because the fund managers have proven to be able to create a relatively large amount of extra value with this fund, they seek an extra reward for this if things go well. For this we use a remuneration structure that is widely used among boutique and hedge funds.
Yes, this is the part of the return which is not subject to the
performance fee charge. Because of the higher risk nature of
investments, we feel it imprudent to charge a management fee if no gains
have been made. Thus, we have decided to exempt the first 0.5% per month from the performance fee. The hurdle rate is calculated
separately for every individual participant, and is settled every
quarter with the performance fee. Again, you will not receive an invoice
The first 0.5% per monthly return is exempted from the performance fee
(assuming a quarterly return of 2.5%, a performance fee of 0.2%
(equaling 20% (15% in case of a Subscription of EUR 1,000,000 or more)
of the extra 1%) is deducted. Unlike most other funds, the calculation
of the performance fee is done for every participant separately. For a further explanation of the calculation of the performance fee,
please refer to section 7.1.2 of the Prospectus
It is possible that you will be charged a performance fee while (a part of) your investment is still at a loss. This can occur when you have made an additional payment (bijstorting), on which a profit has already been made. Each additional payment is registered as an independent investment, for which separate fees are charged.
The high water mark is the highest value the fund has obtained over the
period of an individual's participation. This is of importance in
calculating the performance fee. Should the value of the fund drop below
its highest mark, the participant will not be charged a following
performance fee unless the initial high water mark is once again
surpassed. In addition it is important to note that, because the
performance fee is deducted once every quarter, the value of the fund at
the close of the quarter will be considered the high water mark, even
if the value of the fund has been at higher levels during the course of
the previous three months. The high water mark is therefore the highest
NAV over the period an investor is participating in the fund.