Fees and Compensation — Form ADV Part 2A (7/24/2017)
[Brochure]
Item 5 Fees and Compensation
GCM’s investment advisory fees for separate account management are typically stated as a percentage of
assets under management and payable quarterly, in arrears. GCM typically sends an invoice to clients
within 15 business days after quarter end. Fees may be paid directly to GCM by the client or may be paid
from the client’s custodial account based on arrangements agreed upon by the client and the client’s
custodian. Custodians may not independently validate the amount of GCM’s fee, and clients are
encouraged to review their custodial account statements. Fees are typically based on the market value of
the account (including cash equivalents and accrued income) as of the close of each calendar quarter.
Fees are prorated at inception and termination for the number of days under active management in the
quarter. Fees may be adjusted on a time-weighted basis for changes to the value of the account due
to material contributions or withdrawals during the quarter.
GCM provides model portfolios and securities ranking information to an affiliated investment
adviser that uses the portfolios and rankings information in connection with the provision of
investment advisory services to its clients. The fees paid to GCM under those and similar
circumstances are negotiated on a case-by-case basis.
GCM serves as investment adviser to several mutual funds. The fees paid to GCM for mutual fund
advisory services are negotiated on a case-by-case basis.
GCM’s stated fee schedule for the strategies that it currently offers is set forth below. (Fees for
customized client strategies are negotiated on a case-by-case and are not listed below.) GCM’s fees are
negotiable, and GCM is willing to enter into performance fee arrangements. Subject to exceptions,
GCM’s minimum account size for separate account management is $5 million. Different fees and
minimums apply for wrap account program clients. When considering account-level advisory fees,
clients should be aware that client accounts invested in investment company securities (e.g., money
market funds, exchange-traded funds) will also bear their proportionate share of fees paid at the
investment company level. GCM does not receive any fees that are paid at the investment company level.
If the investment company is sponsored, advised or otherwise serviced by a Wells Fargo company,
affiliates of GCM may receive fees that are paid at the investment company level. GCM’s investment
advisory fee will not be reduced under such circumstances.
In addition to advisory fees paid to GCM, a client will pay other fees and expenses in connection with the
account. For example, GCM clients (non-wrap program) will typically pay brokerage commissions and
any other transaction charges associated with buying and selling securities. See Item 12. In addition,
most clients will pay fees and expenses associated with the provision of custody services for their
account. See Item 15. GCM does not receive any of these non-advisory service fees (e.g., brokerage
commissions and other transaction charges, custodial fees, transfer taxes or sales loads or similar
charges), although GCM may receive soft dollar credits from client trading. See Item 12.
DOMESTIC STRATEGIES:
Large Cap Core
0.60% - all assets
SMID Cap Core
0.75% - all assets
Small Cap Core
0.80% - all assets
Enhanced Large Cap
0.40% - all assets
Enhanced U.S. Large Equity
0.25% - all assets
Enhanced U.S. Equity Market
0.40% - all assets
Small Cap Equity
0.50% - all assets
Dividend Income
0.60% - all assets
S&P 500 Equity Index
0.07% - first $100 million
0.03% - all over $100 million
INTERNATIONAL/GLOBAL STRATEGIES:
International Developed Markets
0.50% - all assets
Global Equity Yield
0.70% - first $50 million
0.60% - next $50 million
0.50%- all over $100 million
International Small Cap
0.90% - first $50 million
0.80% - next $50 million
0.70%- all over $100 million
Account Minimums and Types of Clients — Form ADV Part 2A (7/24/2017)
[Brochure]
Item 7 Types of Clients
GCM provides discretionary and non-discretionary investment advisory services to individuals, pension
plans, institutions, investment companies and other types of clients. GCM clients may include affiliates
of GCM, including without limitation, Wells Fargo Bank, N.A. and Wells Fargo Advisors. As noted
above, in addition to providing investment advisory services through managed separate accounts, GCM
provides investment advisory services in connection with several managed account programs, including
wrap fee and/or model-portfolio programs. Subject to exceptions, GCM’s minimum account size for
separate account management is $5 million. With respect to managed account programs, GCM’s
minimum account size requirements vary. Managed account program minimums are less than GCM’s
separate account minimum account size.