Unavoidable Dilution

Investors need basic “structural” components and investment vehicles for the implementation of their strategies. These include banks or custodian organizations to hold the assets and execute transactions (basic “structural” components), and the assets themselves (investment vehicles). Investors will, hence, incur one or more of the following:

1. Vehicle access fees –Total expenses associated with the passive vehicle(s) investors need to acquire in order to participate in the returns of a specific asset class or sector.

2. Transaction costs –Commissions, bid/ask spreads and market-impact costs of acquiring any investment vehicle; alsocosts associated with the maintenance of the securities purchased/sold by the passive vehicle (typically not calculated or shown).

3. Custody fees –Fees payable to banks/custodians hired by investors to hold their investments.

4. Trust, administrative and/or other structural fees –Costs associated with the ownership structure of the assets.