Fees and Compensation — Form ADV Part 2A (1/27/2017)
[Brochure]
Item 5 – Fees and Compensation
Each AAM Client has entered into an agreement with RBC AAM pursuant to which RBC AAM provides investment advisory
services and receives a management fee. The specific manner in which RBC AAM charges fees was established in the AAM
Client’s written agreement with RBC AAM. RBC AAM generally bills its fees on a monthly basis in arrears, although specific
terms may have been negotiated with each AAM Client.
The Funds
Each of the Funds has set forth its specific fee structure (including how and when fees are calculated, charged, and payable)
in an offering document provided to each prospective Fund investor prior to the prospective client’s decision to invest.
Funds are closed to new investors and RBC AAM is waiving its fee on all Funds.
Because each Fund implements a fund of hedge funds strategy, AAM Clients bear the operating expenses of the underlying
hedge funds in which the Fund invests. The total expenses borne by an AAM Client are higher than if invested directly in the
Portfolio Funds and the returns may therefore be lower. The Portfolio Funds and the managers of such Portfolio Funds
(“Portfolio Managers”) may use aggressive investment strategies, which may be riskier than traditional investment strategies.
RBC Alternative Asset Management Inc.
AAM Clients also incur certain charges imposed by custodians, brokers, and other third parties such as fees charged by
managers, custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer or electronic fund fees and
other fees, and taxes on brokerage accounts and securities transactions. Such charges, fees, and commissions are exclusive of
and in addition to RBC AAM’s fee. RBC AAM does not receive any portion of these commissions, fees, and costs.
Account Minimums and Types of Clients — Form ADV Part 2A (1/27/2017)
[Brochure]
Item 7 – Types of Clients
RBC AAM management services involve managing the wind-down of the Funds. Fund investors are qualified investors,
including high net worth individuals and institutional clients. Where RBC AAM is the investment adviser to a Fund, the Fund –
not any fund investor – is our client.
Funds are closed to new investors, and RBC AAM is no longer taking any new clients.
RBC AAM also provides investment management services as a sub-adviser to an affiliated entity. For more information about
this relationship, see Item 10.