The Partnership pays the General Partner a monthly brokerage charge, organization and offering reimbursement and operating expenses. The annualized brokerage charge, organization and offering reimbursement and operating expenses are presented in the table below.
| | | | | | | |
| | | | Organization and Offering | | | |
| | Brokerage charge* | | Reimbursement* | | Operating Expense* | |
Class A units | | 7.00 | % | 0.10 | % | 0.25 | % |
Class B units | | 7.45 | % | 0.30 | % | 0.25 | % |
Legacy 1 Class units | | 4.50 | % | 0.30 | % | 0.25 | % |
Legacy 2 Class units | | 4.75 | % | 0.30 | % | 0.25 | % |
Global 1 Class units | | 3.95 | % | 0.30 | % | 0.25 | % |
Global 2 Class units | | 4.20 | % | 0.30 | % | 0.25 | % |
Global 3 Class units | | 5.95 | % | 0.30 | % | 0.25 | % |
*The fees are calculated and payable monthly on the basis of month-end adjusted net assets. “Adjusted net assets” is defined as the month-end net assets of the particular class before accruals for fees and expenses and redemptions.
Included in the total brokerage charge are amounts paid to the clearing brokers for execution and clearing costs, which are reflected in the commissions line of the consolidated statements of operations, and the remaining amounts are management fees paid to the Advisors, compensation to the selling agents and an amount to the General Partner for management services rendered, which are reflected in the brokerage charge line on the consolidated statements of operations. The brokerage charge in the amounts of $484,589 and $1,478,343, respectively for the three and nine months ended September 30, 2022 and $513,617 and $1,623,177, respectively, for the three and nine months ended September 30, 2021, are shown on the consolidated statements of operations.
Transaction costs and consulting fees are taken into account in determining the net amount the Partnership receives or pays in connection with swap transactions, but such costs or fees are not directly charged to the Partnership or any of its trading companies. The general partner will reduce (but not below zero) the brokerage charge by the amount of such costs and fees. Each class of units pays a fee to a counterparty in respect of any swap transaction of up to 0.50% of the notional amount of such swap transaction.
Ongoing organization and offering costs of the Partnership are paid for by the General Partner and reimbursed by the Partnership. The organization and offering costs in the amounts of $28,201 and $86,724, respectively, for the three and nine months ended September 30, 2022 and $31,076 and $97,802, respectively, for the three and nine months ended September 30, 2021, are shown on the consolidated statements of operations.
Operating expenses of the Partnership are paid for by the General Partner and reimbursed by the Partnership. To the extent operating expenses are less than 0.25 percent of the Partnership’s average month-end net assets during the year, the difference may be reimbursed, at the General Partner’s discretion, pro rata to record-holders as of December 31 of each year. The operating expenses in the amounts of $25,093 and $77,087, respectively, for the three and nine months ended September 30, 2022 and $27,494 and $86,332, respectively, for the three and nine months ended September 30, 2021, are shown on the consolidated statement of operations.
An entity owned in part and controlled by Mr. Kavanagh, who indirectly controls and is president of Dearborn Capital Management, L.L.C., the general partner of the Partnership, and in part by Mr. Al Rayes, who is a principal of the General Partner, and an entity owned in part and controlled by Mr. Meehan, the chief operating officer of the general partner, and Fernando Benitez, executive vice president, product management of the general partner, hold a minority ownership interest in EMC, which is one of the commodity trading advisors of the Partnership. The general partner, on behalf of the Partnership, pays EMC a quarterly consulting fee and a quarterly incentive fee based on new trading profits, if any, achieved on EMC’s allocated net assets at the end of each period. For the three and nine months ended September 30, 2022, EMC was paid approximately $28,600 and $83,800, respectively, in consulting fees and $151,600 and
