We think overall the funds fees are high, in 2021, the funds costs amounted to 3.69% on the funds year end NAV of USD 120.7m
As per the funds documentation the following fees are chargeable by the fund.
Information Memorandum (dated March 2021) LINK
Managers Fee of 1.5% per annum on the NAV of each Cell, accrued and paid monthly.
+ reimbursement of any out-of-pocket expenses
Investment Advisory fee
$50,000 per month from EEA Inc. to the Investment Adviser, reduced once number of policies is below 50
Custodian fee
Annual charge of £14,000 per Cell, subject to a minimum of £70,00. But there are currently 30 cells so a total of £420,000 is charged
+ additional banking or miscellaneous fees
Sub-Custodian fee
$75,000 monthly
Servicing Agent fee
$570 per policy and annual standing charge of $5,000
Premium Paying Agent fee
$35 per primum disbursement, subject to a maximum of $5,000
Administrators, Secretary and Registar Fee
0.1% per annum on NAV up to a NAV of $250m, but with a minimum of £10,000 per cell and overall minimum of £35,000. With a fund NAV of c. $120m, the fee would be c. $120,000
Board meeting fees of £10,000 per annum
£4,000 per annum for the three Holding Co. as listed below
Fixed fee $100,000 per annum + stock transfer Fees ( not defined for whom)
Directors
up to $100,000 per annum
Other Costs ( EEA Holdings, Master Subsidiary and Master Sub II) costs
3 x £1,200 per annum ( Guernsey Tax Ordinance)
