Answer To: You should write a dynamite statement of interest Question 1: Environmental protection agency...
Preeta answered on Jul 17 2021
Q1
Question: Please use formulas to complete the follow in the below table highlighted in yellow:
1 Calculate the monthly management fee based on the below Management Fee and Side Letter language:
2 Calculate the Opening and Ending balances after Management Fees
3 Calculate the MTD and YTD Rate of Returns
Month Opening Balance MTD Capital Activity MTD P&L MTD Management Fee Ending Balance MTD ROR YTD ROR
January 29,500,000 30,000,000 500,000 47,938 29,452,063 0.16% 1.95%
February 29,900,000 30,000,000 100,000 48,588 29,851,413 0.16% 1.95%
March 9,800,000 10,000,000 200,000 15,925 9,784,075 0.16% 1.95%
April 20,500,000 20,000,000 (500,000) 33,313 20,466,688 0.16% 1.95%
May 49,800,000 50,000,000 200,000 80,925 49,719,075 0.16% 1.95%
June (30,000) - 0 30,000 (49) (29,951) 0.16% 1.95%
July (1,000,000) - 0 1,000,000 (1,625) (998,375) 0.16% 1.95%
August 300,000 - 0 (300,000) 488 299,513 0.16% 1.95%
September (39,800,000) (40,000,000) (200,000) (64,675) (39,735,325) 0.16% 1.95%
October (500,000) - 0 500,000 (813) (499,188) 0.16% 1.95%
November (150,000) - 0 150,000 (244) (149,756) 0.16% 1.95%
December (200,000) - 0 200,000 (325) (199,675) 0.16% 1.95%
100,000,000 1,880,000 1.95%
Management Fee Language:
The Fund will pay to the Investment Manager a fee for its services (the “Management Fee”) for each month equal to one-twelfth of
the result of the applicable Management Fee Rate multiplied by the net asset value of each series of Shares as of the end of such
month (before taking into account the estimated accrued Performance Allocation and Management Fee and after reduction for all
other fees and expenses for the month, if any).
Side Letter Language:
At all times when the Investors’ Net Subscriptions (as defined below) are equal to or greater than $70 million
but less than $125 million, the Management Fee rate applicable to the Investor shall be equal to 1.95% per
annum. Further, when the Investors’ Net Subscriptions are equal to or greater than $125 million,
the Management Fee rate applicable to the Investors shall be equal to 1.65% per annum.
“Net Subscriptions” means the aggregate subscriptions to the Fund by the
Investor minus the aggregate amount of redemptions (without taking
into consideration appreciation or depreciation with respect thereto) by the Investor.
Q2
Question: Please use formulas to calculate the month to date and year to date incentive fees based on the below MTD P&L provided. The incentive fee rate is 20%.
The initial subscription was 1/1 and there were no additional subscriptions or redemptions throughout the year.
Month MTD P&L MTD Incentive YTD...