Item 5: Fees and Compensation
Currently, each investor in each Fund (each, a “Fund Investor”) is a person other than a “U.S.
Person” as defined in Regulation S under the Securities Act of 1933, as amended (the “1933
Act”). It is currently intended that any Funds marketed to U.S. Persons in the future will be open
to investment by, and this Brochure will only be provided to, U.S. Persons that are “qualified
purchasers” as defined in Section 2(a)(51) of the Investment Company Act of 1940, as amended
(the “1940 Act”). In addition, LarrainVial Asset Management currently only markets managed
accounts to high net worth individuals and institutions that are non-U.S. Persons.
The rate of LarrainVial Asset Management’s fees varies depending upon factors such as the type
of account, the asset classes involved and the amount of assets being managed. All advisory fees
and compensation borne by a SMA Client or Fund Investor, and the specific manner of
calculating such fees and compensation, are set forth in detail in the advisory contract between
such SMA Client and LarrainVial Asset Management (each, an “Advisory Agreement”) or the
applicable Fund’s prospectus (each, a “Fund Prospectus”), as the case may be.
LarrainVial Asset Management charges two types of fees: asset based fees (the “Advisory Fee”)
and performance based fees (the “Performance Fee”).
Generally, each Fund Investor will pay an advisory fee based on the amount of the Fund
Investor’s investment in the Fund. In addition, some of the Funds also charge a Performance Fee
equal to a portion of the Fund Investor’s net profit. The Advisory Fees and/or Performance Fees
charged to any Fund Investor may be waived or reduced and is intended to be waived on
investments made by LarrainVial Asset Management, its affiliates and their principals and
employees. The amounts of the Advisory Fees and Performance Fees are generally calculated by
the Fund’s agents and paid to LarrainVial Asset Management directly from the Fund’s assets.
Each SMA Client will pay an Advisory Fee based on the amount of assets it has under
management with LarrainVial Asset Management. The amounts of Advisory Fees charged to
SMA Clients may be individually negotiated, based on client specific factors. Generally
Advisory Fees are calculated and billed quarterly. Advisory Fees for all SMA Clients are
calculated and billed in arrears. The SMA Client can direct that the Advisory Fees be deducted
from its account or may choose to pay from a separate account.
In addition to paying Advisory Fees and, if applicable, Performance Fees, Fund Investors and
SMA Clients will also be subject to other investment expenses such as custodial charges,
brokerage fees, commissions and related costs (See Item 12 for a Description of LarrainVial
Asset Management’s brokerage practices); interest expenses; research expenses; taxes, duties
and/or other governmental charges on transfer; transfer and registration fees and/or similar
expenses; fees charged by mutual funds, ETFs and other investment funds; costs associated with
foreign exchange transactions; and any and all other investment costs, expenses and fees.
In addition to the fees stated above, there are additional fees borne by the Fund Investors and
SMA Clients, including, but not limited to, as legal and compliance expenses; administrative
expenses; and external accounting, audit and tax preparation expenses. Fund Investors will also
bear their allocable share of all other organizational and ongoing operating expenses of the
LarrainVial Asset Management – Form ADV Part 2A
applicable Fund as set forth in the prospectus of such Fund. Furthermore, Fund Investors and
SMA Clients may be charged additional fees by their service providers, such as a fee from a bank
to wire money.
Neither LarrainVial Asset Management nor 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.
LarrainVial Asset Management – Form ADV Part 2A