Item 5 – Fees and Compensation
Negotiability of Fees: In certain circumstances, all fees, account minimums and their applications to family
circumstances may be negotiable.
Management Fee Billing: The specific manner in which fees are charged by Caprock is established in a
client’s written agreement with Caprock. Caprock offers its services on a fee basis which may include fixed
fees or fees based upon a percentage of the assets under management and advisement. Caprock will
request authority from the client to receive monthly payments directly from the client's account held by an
independent custodian unless a client elects to be billed directly for fees.
Management fees will be billed on a monthly basis at the end of each month (in arrears) in an amount
equal to the value of the Account (market value or estimated market value in the absence of market value)
at the end of such month multiplied by 1/12th of advisory agreement rate, pro-rated in the case of any
partial month. Accounts initiated or terminated during a calendar month will be charged a prorated fee.
Valuation Procedures for Fees on Estimated Valuations: Interest in private investment funds will be valued
at their “fair value,” as determined in good faith according to the policies established by the underlying
investment manager or other third-party valuation agent employed by such investment manager, such as
the fund administrator. In some occasions, Caprock will employ the following procedure when the
underlying fund or investment provides an estimate in lieu of an actual client capital account balance. In
the case of an estimate, the following calculations are utilized to determine the month end market value:
If the estimate is positive (i.e. a monthly return of +3.0%) Current Month End Valuation = (1 + estimate X
80%) X (Previous Month End Valuation). If the estimate is negative (i.e. a monthly return of -3.0%) Current
Month End Valuation = (1 + estimate) X (Previous Month End Valuation). In that case the actual performance
figures are provided after an estimate has been utilized, adjustments to the portfolio market value will be
made in the ensuing month.
Termination of Advisory Relationship: A client agreement may be canceled at any time, by either party, for
any reason upon receipt of prior written notice. Upon termination of any account, any prepaid, unearned
fees will be promptly refunded. In the event of withdrawal of funds or the termination of any account, any
fees, commissions or other expenses associated with rebalancing or liquidating the account holdings may
be assessed to the client's account.
Additional Information About Fees & Expenses: Caprock’s fees are exclusive of brokerage commissions,
transaction fees, and other related costs and expenses which shall be incurred by the client. Clients may
incur certain charges imposed by custodians, brokers, third party investment managers and other third
parties such as fees charged by managers, custodial fees, deferred sales charges, odd-lot differentials,
transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage accounts and
securities transactions. Mutual funds and exchange traded funds also charge internal management fees,
which are disclosed in a fund’s prospectus.
Fees paid to Caprock for investment advisor services are also separate and distinct from the fees and
expenses charged by the independent investment manager's fee for that entity's advisory/management
services or an alternative, private and real asset manager expenses.
Such charges, fees and commissions are exclusive of and in addition to Caprock’s fee, and Caprock shall
not receive any portion of these commissions, fees and costs.
Investment Advisor Fees
Investment Advisor Services & Family Office Services:
The annual fee for Investment Advisor Services will generally be no greater than 1% of assets under
management
Investment Advisor Fees are negotiable based on the requirements of the client and the complexity of
services provided. In special arrangements, Caprock charges a fixed retainer fee based on anticipated
services. Fees for Investment Advisor Services are billed on a monthly basis in arrears.
Consulting Service Fees:
Consulting Service Fees are negotiable and are based on the requirements of the client and the complexity
of services provided. Fees will typically be charged as a percentage of assets or as a fixed retainer fee based
on anticipated services. Fees for Consulting Services are billed on a monthly basis in arrears.