Cost

(2008-09-08)

The execution of the active management service will incur several types of cost for the customer’s account. The customer pays the company a fee for the active management service based on a percentage of the assets under management. The management fee is agreed with each individual customer. In addition, there are corresponding management fees charged by the mutual funds and hedge funds in which the customer’s assets are invested. These management fees vary from investment to investment, and may be from 0.2 % up to over 2.0 % per annum. For most fund investments, performance fees may also accrue. A performance fee normally entails that the investor pays from 10 % to 25 % of the excess return above a certain level to the manager. This is additional to the fixed management fee. Information about these costs is available in the prospectus of the relevant investment. Transaction costs may accrue in connection with the purchase of the underlying investments. For direct investments, the transaction cost will normally be 0.2 % of the transaction amount, but may be higher in some situations. For investments in funds, transaction costs will normally not be incurred, but they may, and would then vary from 0.5 % up to 5 %. For some fund investments, there will be additional charges for administration and custody costs. Administration and custody costs normally constitute from 0.05 % up to 0.2 % of the assets under management. Currency exchange transaction costs are additional.