Is GPS a financial institution?

No. GPS is an independent wealth manager and, differently from most banks, does not have its own products and does not act as a financial institution in Brazil. GPS is a part of the Julius Baer Group – a private bank present worldwide and dedicated to financial advisory. Just like GPS, Julius Baer does not have its own products.

Is it necessary to open an account with GPS to become a client?

No. The client must only sign a contract hiring GPS´s financial advisory services. However, GPS utilizes financial institutions’ platforms to access and to custody investments.

What does an investment advisory service do?

It seeks to build an investment portfolio according to each clients´ necessities, considering the moment in life, family structure and risk profile. It may involve succession and fiscal planning, aside from training.

What is the main factor that makes GPS free from conflict of interest when managing financial investments?

Our model is based on client-oriented interests, given that our compensation is a fixed fee charged on the assets under management. It is differs from the traditional model, widely practiced in the industry, which receives commissions and benefits in exchange to distributing certain products. This leads to a biased asset allocation – exactly the antithesis to our model. We are free from conflict of interest when building our clients´ portfolio.

How is GPS compensated by the client?

It is compensated exclusively by a fixed fee based on the clients´ assets under management. Neither commissions, nor any other fees, are present in our compensation model.

What is the advantage of choosing an advisor that is compensated in such manner?

This compensation model permits the company to be exclusively aligned with the cleints´ interests. There is, thus, no incentive for the clients´ portfolio allocation to be more aggressive or conservative. It depends only on the clients´ risk profile and objectives, as well as qualitative and quantitative analysis made by our Investment Team.

How does the manager´s size influence investments?

The manager´s size influences the bargaining power it has with the rest of the industry. GPS has significate gains when accessing products and negotiating costs, such as lower fees charged by external fund managers and banks; better fixed income asset fees and participation in private offerings. Another important factor is that a manager with scalability is able to build a better structure to manage investmentssince it has more assets to hire the best professionals, provide more robust systems and technology, among other reasons.

Is the client exposed to GPS´s credit risk?

No. There is no credit risk involved because the financial advisory is done utilizing the platform of a solid financial institution.

How does GPS define an investment portfolio allocation?

Portfolio allocation is defined by the clients´ individualized risk profile, moment in life and objectives. The risk profile is reevaluated periodically according to the market´s dynamic.

What is an Exclusive Fund and what is GPS´s role in managing the Fund?

An Exclusive Fund is an investment fund structured to attend only one, or a limited amount of, investors. It aims to meet the investors´ specific needs and to provide the liberty and exclusivity of building a portfolio. Our role is to manage the fund, determining asset allocation according to the clients´ risk profile.

Does GPS recommend investing in retirement funds?

GPS does recommend retirement funds to clients who have specific interests that this asset class may offer, such as fiscal benefits, succession planning and complementary retirement plans. Analyzing the need to invest in retirement funds is based on the clients´ risk profile, moment in life and long-term goals.