What are the fee structures (management and performance fees) and have there been any changes that could impact net returns?

Fee structure (as disclosed)

The press release on the Firsthand Technology Value Fund’s (SV – OTCQB: SVVC) Q2 results does not contain any specific information about the fund’s management or performance (carried‑interest) fees. The filing merely reports the NAV of $0.11 per share and the quarter’s financial highlights, but it does not disclose the fee schedule nor any amendment to the fund’s prospectus. In the absence of an explicit update, the fee regime that investors typically encounter with publicly‑traded venture‑capital vehicles of this size remains a 2 % annual management fee and a 20 % performance (carry) fee on any profits above the hurdle rate. That is the standard “2‑and‑20” structure used by most venture‑capital funds, and unless an amendment is filed with the SEC, it is reasonable to assume that the fund continues to operate under that baseline.

Potential impact on net returns

Because the release does not announce a change in fees, the net return to shareholders is likely to be affected only by the fund’s operating performance and the usual expense ratio (which typically sits near 2 % of assets under management). Any unannounced changes—such as a reduction in the management fee or a modification to the performance‑fee hurdle—would directly affect net returns and could be reflected in future prospectus filings or SEC Form 8‑K disclosures. For traders and investors, the key implication is to monitor regulatory filings (e.g., Form 8‑K, S‑1 amendments) for any fee‑structure updates before making allocation decisions. Until an official amendment is disclosed, the market should price the fund’s future cash‑flow expectations assuming the current 2‑and‑20 structure, which may compress net returns relative to low‑fee alternatives, especially in a period of modest NAV growth. Investors should therefore factor the typical 2 % expense and 20 % carry into their expected return calculations when assessing the fund’s attractiveness versus comparable venture‑funds or broader tech‑sector ETFs.