FORM CRS

Q: What fees will I pay?

Scala Capital LLC offers advisory services for a fee that is set in and governed by the Advisory Agreement between you, as the Client, and Scala Capital, as the Investment Advisor. Fees are paid on a quarterly basis, either in arrears or in advanced, as agreed with you, based on the net asset value of the financial assets managed by the Firm as of the last business day of each month, or calculated based on the official value of the accounts or portfolios as reported by the financial institutions that act as brokers and/or custodians for the client (i.e. advisory fees for January, February and March are paid in April). For detailed information, refer to our Form ADV Part 2A, Items 5 and 6 via the following link: https://adviserinfo.sec.gov/firm/brochure/156165.

 

The fees charged to each client are a function of the type and size of the client’s portfolio. These fees range from 1.00% to 1.50% per annum (payable on a quarterly basis, calculated as 1/4 of the agreed upon percentage fee multiplied by the Net Asset Value of each account). These fees may be negotiated by the advisor under unusual circumstances, at the sole discretion of the advisor. The percentage fee schedule is based on the net asset value of the portfolio and is as follows: For account up to $1,000,000, the advisory fee is 1.50%; for accounts that range from $1,000,001 to $10,000,000, the advisory fee is 1.25% and, finally, for accounts over $10,000,000 the advisory fee is of 1.00%. In most cases, advisory fees will automatically deducted from your account on a quarterly basis by the broker-dealer where you have your account. If you have a net worth greater than $2,100,000, you may qualify, and elect to pay, a fee based on the capital gains in your account(s), known as a “Performance Fee”. Ask us about the requirements, terms and conditions applicable to Performance-based advisory fees. All fees paid to the Firm for investment advisory services are separate and distinct from the expenses charged by mutual funds to their shareholders and the product sponsor in the case of variable insurance products. These fees and expenses are described in each fund's or variable product's prospectus. These fees will generally include a management fee, other fund expenses, and a possible distribution fee. If the sponsor also imposes sales charges, a client may pay an initial or deferred sale or surrender charge. A client could invest in these products directly, without the services of the Firm. In that case, the client would not receive the services provided by the Firm which are designed, among other things, to assist the client in determining which products or services are most appropriate to each client's financial condition and objectives. Accordingly, the client should review both the fees charged by the product sponsor and the fees charged by the Firm to fully understand the total fees to be paid. It is important to note that you will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.