Fees and Compensation — Form ADV Part 2A (3/26/2024)
[Brochure]
Item 5 Fees and Compensation
A. Describe how the firm is compensated for its advisory services. Provide the fee schedule.
Disclose whether the fees are negotiable.
Compensation for advisory services is based on assets under management. Fees charged to client
accounts are based on a percentage of the market value of assets under management, usually on a sliding
scale. Clients are charged according to a standard schedule, but fees may be negotiated within a narrow
range. Fee schedules may vary by the type of investment mandate selected by the client, and by the type
of account. For example, an equity mandate may be charged a slightly higher fee than a fixed income
mandate, and a pension plan is charged a lower fee than an individual. Clients will, typically, be charged
between 0.75% and 1.25% per annum based on the market value of assets under management. Fees are
billed quarterly as directed in the client’s investment advisory agreement and calculated based on the
market value of assets in the investment account on the last trading day of the calendar quarter. In any
partial calendar quarter, fees are pro-rated based on the number of days in which the account is open
during the quarter. For purposes of calculating GCALP’s advisory fees, the market value of assets in the
investment account shall consist of the market value of securities and other investments held in the
account, including cash. In certain interest rate environments, the management fee attributable to the cash
position could exceed the yield on the cash position.
Mutual fund investors are urged to read each fund’s prospectus for a complete discussion of fees and
expenses associated with investment.
B. Describe whether the firm deducts fees from clients’ assets or bills clients for fees incurred. If
clients may select either method, disclose this fact. Explain how often you bill clients or deduct your
fees.
Management fees are billed quarterly in arrears and are generally debited directly from the clients’
accounts based on instructions provided by the client to their custodian. In rare cases, GCALP sends
invoices to clients for payment of their investment management fees.
C. Describe any other types of fees or expenses clients may pay in connection with the firm’s
advisory services, such as custodian fees or mutual fund expenses. Disclose that clients will incur
brokerage and other transaction costs, and direct clients to the section(s) of your brochure that
discuss brokerage.
All fees paid to GCALP for investment advisory services are separate and distinct from the fees and
expenses charged by a custodian and those charged by mutual funds to their shareholders. Mutual fund
fees and expenses are described in each fund’s prospectus and generally include a management fee and
other fund expenses. Clients will incur brokerage and other transaction costs. However, there are no
custodial fees charged by GCALP to maintain the account. See brochure Item 12, Brokerage Practices
for more information.
D. If the firm’s clients either may or must pay your fees in advance, disclose this fact. Explain how
a client may obtain a refund of a pre-paid fee if the advisory contract is terminated before the end
of the billing period. Explain how you will determine the amount of the refund.
Clients are billed quarterly in arrears. No fees are charged in advance.
E. If the firm or any of its supervised persons accepts compensation for the sale of securities or
other investment products, including asset-based sales charges or service fees from the sale of
mutual funds, disclose this fact.
Neither the firm nor its supervised persons accepts compensation for the sale of securities or other
investment products.
Account Minimums and Types of Clients — Form ADV Part 2A (3/26/2024)
[Brochure]
Item 7 Types of Clients
Describe the types of clients to whom the firm generally provides investment advice, such as
individuals, trusts, investment companies or pension plans. If the firm has any requirements for
opening or maintaining an account, such as a minimum account size, disclose the requirements.
GCALP offers its services to the following types of clients: individuals, investment funds, pension and
profit-sharing plans, trusts, estates, or charitable organizations, and corporations or other business entities.
GCALP’s minimum account requirement for opening and maintaining an account is generally
$1,000,000 Canadian. However, GCALP may, at its sole discretion, accept accounts with a lower value
depending on the circumstances.