Item 5: Fees and Compensation
Compensation earned by the Firm for the provision of investment advisory services to our
Clients is generally comprised of management fees based on a percentage of capital under
management during the investment period, as well as, in certain circumstances, a performance-
based interest. Fees and compensation are described within the organizational and operating
agreements for each Account that we manage or in each investment advisory agreement
between us and each Client.
Our typical annual fees for portfolio management services are based upon a percentage of
assets under management, generally ranging from 0.50% to 1.25%, and are payable monthly or
quarterly in advance or arrears. For eligible Client Accounts, performance-based fees may be
negotiated in appropriate circumstances. For more information on how Glovista addresses
the potential conflict related to performance-based fees, please see the response in Item 6
below. Fees may change over time and different fee schedules may apply to different types of
Clients, strategies and advisory arrangements. Under certain circumstances, fees may be
negotiated on a basis different from Glovista’s stated fee schedules. In such cases, Glovista
reserves the right to reduce the fees charged to a particular Client in its sole and absolute
discretion.
Glovista Investments LLC Form ADV Part 2A
Although Glovista has established the aforementioned fee schedule(s), we retain the discretion
to negotiate alternative fees on a Client-by-Client basis. Client facts, circumstances and needs
are considered in determining the fee schedule. These include the complexity of the Client;
assets to be placed under management; anticipated future additional assets; related Accounts;
portfolio style; Account composition; and reports, among other factors. The specific annual
fee schedule is identified in the contract between the adviser and each Client.
Note that Management Fees are generally calculated either by the custodian (in case of wrap
programs or Private Funds) or by Glovista as per the investment management agreement.
Performance fees, if applicable with respect to any SMA, are calculated internally by Glovista
in accordance with our policies and procedures and relevant Investment Management
Agreements. In cases where Glovista calculates the fees, the fees are not verified by any
independent third party.
Additional Fees and Expenses
As part of our investment advisory services to you, we may invest, or recommend that you
invest, in mutual funds and exchange traded funds. The fees that you pay to our Firm for
investment advisory services are separate and distinct from the fees and expenses charged by
mutual funds or exchange traded funds (described in each fund's prospectus) to their
shareholders. These fees will generally include a management fee and other fund expenses.
You will also incur transaction charges and/or brokerage fees when purchasing or selling
securities. These charges and fees are typically imposed by the broker-dealer or custodian
through which your Account transactions are executed. We do not share in any portion of
the brokerage fees/transaction charges imposed by the broker-dealer or custodian. To fully
understand the total cost you will incur, you should review all the fees charged by mutual
funds, exchange traded funds, our Firm, and others. For information on our brokerage
practices, please refer to the "Brokerage Practices" section of this Disclosure Brochure.
Any material conflicts of interest between you and our Firm, or our employees are disclosed
in this Disclosure Brochure. If at any time, additional material conflicts of interest develop, we
will provide you with written notification of the material conflicts of interest or an updated
Disclosure Brochure.
Fees for Accounts Within Wrap Fee Programs
For additional information with respect to wrap fee programs, please see the sub-section
entitled “Wrap Fee Programs” under “Item 4 - Advisory Business” of this Brochure.
With regard to wrap fee program accounts, the all-inclusive fee charged by the wrap fee
program sponsor may exceed the aggregate cost of the services provided if such services were
negotiated and purchased separately, depending on:
• the level of the all-inclusive fee;
• the amount of trading activity in a Client’s Account;
• the cost of brokerage commissions (which costs are typically negotiated between
the Client and the broker/dealer, rather than by Glovista);
• the value of any other services rendered to the Client; and
• other miscellaneous factors.
Clients in these programs generally pay the wrap program sponsor a single fee (called a “wrap
fee”) for consulting, brokerage, custodial, portfolio monitoring, and investment management
services, typically up to 3% of the assets under management (but may be more). The fees paid
by Clients for investing in a wrap fee account are set by the sponsor and are generally disclosed
Glovista Investments LLC Form ADV Part 2A
in the sponsor’s contract established with each Client. The sponsoring firm then pays Glovista
a portion of this wrap fee.
For wrap fee programs, fees are typically paid to Glovista by the sponsor and are typically due
quarterly. In all cases, the wrap fee sponsor deducts the Client’s all-inclusive fee from the
Client’s Account and then remits to Glovista a portion of the sponsor’s fee for Glovista’s
investment management services. Any prepaid unearned fees previously paid to Glovista by
the sponsor are refunded on a pro rata basis upon termination of Glovista as the wrap fee
manager under the agreement by the Client.
Glovista provides investment management services to wrap Clients based upon the
information and guidelines provided by the sponsor. Wrap account program Clients should
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