Item 5. Fees and Compensation
We charge the Funds an annual fee of 1.50% of the net assets under management with
respect to each partner, as well as an incentive allocation equal to 20% of net profits of
each partner, calculated on an annual basis and adjusted for unrecovered losses incurred
by each partner.
Fees in General
Generally, pursuant to client instructions and consent, we will directly debit their
custodial accounts.
Fees are billed in advance, at the beginning of each quarter, based upon the billable
balance on the last day of the previous calendar quarter, pro-rated for additions and
withdrawals.
Fees and account minimums for all services are negotiable based upon certain criteria
(i.e. anticipated future earning capacity, anticipated future additional assets, dollar
amount of assets to be managed, related accounts, account composition, negotiations with
client, etc.). Therefore, some investors in the Funds may pay more or less than other
investors for the same management services, depending, for example, on subscription
date, number of related accounts or total investor assets managed by us. Discounts, not
generally available to our advisory clients or fund investors may be offered to family
members and friends. At our discretion, we may waive or reduce the Funds’ advisory fee
and/or incentive allocation with respect to any partner.
We may group certain related investor accounts for the purposes of determining the
account size and/or annualized fee.
Under no circumstances will we earn fees in excess of $1,200 more than six months in
advance of services rendered.
Account Termination
Clients will have a period of five (5) business days from the date of signing the
agreement to unconditionally rescind the agreement and receive a full refund of all fees.
Thereafter, termination provision are governed by each Fund’s offering documents and/or
advisory agreements executed with our firm and typically require a 90-day advance
notice by any party seeking termination or withdrawal. Upon termination of any account,
any unearned fees through the date of termination of the account fees will be refunded to
the client. In the event of a withdrawal by a limited partner other than at quarter-end, we
will pro-rate the management fee for the quarter and issue a rebate to the partner.
ETF Fees and Expenses: All fees paid to our firm for investment advisory services are
separate and distinct from the fees and expenses charged by ETFs to their shareholders.
These fees and expenses are described in each fund's prospectus. These fees will
generally include a management fee, other fund expenses, and a possible distribution
fee. A client could invest in an ETF directly, without the services of our firm. In that
case, the client would not receive the services provided by us which are designed,
among other things, to assist the client in determining which ETFs are most appropriate
to each client's financial condition and objectives. Accordingly, the client should
review both the fees charged by ETFs and the fees charged by us to fully understand
the total amount of fees to be paid by the client and to thereby evaluate the advisory
services being provided.
Brokerage and Custodian Fees
In addition to advisory fees paid to our firm, clients will also be responsible for all
transaction, brokerage, and custodian fees incurred as part of their account
management. Please see Item 12 of this Brochure for important disclosures regarding
our brokerage practices.
Side Letters:
GRP has and may in the future, waive or modify the terms of investment for certain large
or strategic investors, in side letters or otherwise, in its sole discretion, including but not
necessarily limited to, a waiver or lowering of Management Fees, a waiver or lowering of
the Incentive Allocation, preferential redemption rights, “Key Man” event provisions,
“Most Favored Nation” status and/or increased transparency or reporting.