Gilbert & Cook, Inc. (Gilbert & Cook, we, us our, Firm) is an independently owned SEC
registered investment adviser since 2016. The Firm is a corporation founded in 1994 in the
State of Iowa. Gilbert & Cook is owned by Linda L. Cook, Christopher C. Cook, Brandon D.
Grimm, Megan L. Rosenstiel, and Jerit P. Tripp. Gilbert & Cook is a fiduciary and is required to
act in a client’s best interest at all times.
Gilbert & Cook manages assets for many different types of clients to help meet their financial
goals while remaining sensitive to risk tolerance and time horizons. As a fiduciary it is our duty
to act in the client’s best interest. This is accomplished in part by knowing the client. Our Firm
has established a service-oriented advisory practice with open lines of communication. Working
with clients to understand their investment objectives while educating them about our process,
facilitates the kind of working relationship we value.
Our wrap fee platforms allow clients to pay a single fee for investment advisory services and
associated custodial transaction costs. By participating in a wrap fee platform, clients may pay
more or less through a non-wrap fee platform where a lower advisory fee is charged, but trade
execution costs are passed directly through to the client by the executing broker.
Our Wrap Advisory Services
Gilbert & Cook provides wrap advisory services through two platforms: (i) the Precision Wrap
Platform and (ii) the Alliance Wrap Platform.
Precision Wrap Platform
Gilbert & Cook provides the Precision Wrap Platform Services based on each individual
client’s financial circumstances and investment objectives. We meet with each client to
discuss the client’s current financial condition and to review the client’s current
investment holdings. Based upon each client’s circumstances, we determine an
appropriate asset allocation for the client’s investment portfolio in accordance with the
client’s specific financial objectives and risk tolerance and in consideration of other
factors, including the client’s time horizon (education funding, home purchase,
retirement, legacy planning), liquidity needs, and other available resources (including
external retirement plans, projected social security, outside investments, real estate, and
insurance). Each client’s financial objectives, risk tolerance, and liquidity needs, along
with a recommended asset allocation, are incorporated into their ongoing investment
strategy. In providing the Precision Wrap Platform Gilbert & Cook does not utilize
subadvisors.
Fee Schedule
The maximum annual fee charged for the Precision Wrap Platform service will not
exceed 1.70 %. Fees to be assessed will be outlined in the advisory agreement to be
signed by the Client. Annualized fees are billed on a pro-rata basis quarterly in advance
based on the value of the account(s) on the last day of the previous quarter. Fees are
negotiable and will be deducted from client account(s). Adjustments will be made for
deposits and withdrawals of $10,000 or more made during the quarter. In rare cases, our
Firm will agree to directly invoice. As part of this process, Clients understand the
following:
a) The client’s independent custodian sends statements at least quarterly showing
the market values for each security included in the Assets and all account
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disbursements, including the amount of the advisory fees paid to our Firm;
b) Clients will provide authorization permitting our Firm to be directly paid by these
terms. Our Firm will send an invoice directly to the custodian; and
c) If our Firm sends a copy of our invoice to the client, a legend urging the
comparison of information provided in our statement with those from the
qualified custodian will be included.
Alliance Wrap Platform
We participate in the Schwab Managed Account Program and offer separately managed
accounts from the Managed Account Marketplace, Managed Account Select and
Managed Account Access programs. These Schwab programs allow access to
independent money management firms offered by the Schwab Advisor Services division
of Charles Schwab & Co. Inc. (“Schwab”). Our Firm performs due diligence on various
investment money managers based on the client's individual circumstances and we
determine which selected subadvisor’s portfolio management style is appropriate for that
client. Factors considered in making this determination include account size, risk
tolerance, the objectives of each client and the investment philosophy, and tenure of the
selected subadvisor. Clients should refer to the subadvisor’s Firm Brochure or other
disclosure document for a full description of the services offered. We will furnish a copy
of the disclosure brochures for each subadvisor selected. We will recommend one or
more subadvisors who will manage the client's account on a discretionary basis. On an
ongoing basis, we monitor the performance of the subadvisor(s).
Managed Account Marketplace (“Marketplace”)
Managed Account Marketplace is an open architecture platform that gives clients
access to separate account managers, including those who are not currently part of
the Select or Access programs described below through a dual contract structure.
Access to subadvisors on this platform is offered at various account minimums.
Typical account minimums for Stock/Equity Managers are $100,000, for
Bond/Fixed Income Managers are $250,000, and ETF managers as low as $25,000.
Some money managers may have a higher account minimum.
Instead of a bundled program fee, like “Select” and “Access”, the subadvisor accessed
through
“Marketplace” charges a Management Fee and is in addition to the fee
charged by the Firm.
Managed Account Select (“Select”)
Under this program, the Schwab Center for Financial Research provides institutional
investment research with insights and decision-making tools to help serve clients’
needs. Clients are provided a choice of prescreened money managers across various
investment styles. The program then bundles the research, Schwab’s brokerage,
custodial and client reporting under a single, all-inclusive fee, which is in addition to
the fee charged by our Firm.
Access to managers in this program is offered at the following account levels:
$100,000 for Stock/Equity Managers and $250,000 for Bond/Fixed Income
Managers. Some money managers may have a higher account minimum. The Schwab
Managed Account Select program fees include the subadvisor’s management fee,
Schwab’s program fee and fees for brokerage/clearing/custodial services. Fees may
ADV Part 2A, Appendix 1 – Wrap Fee Brochure Page 6 Gilbert & Cook, Inc.
include a minimum monthly fee, please see related program documents for a
complete description of specific fees.
Managed Account Access (“Access”)
Managed Account Access allows clients to work with an array of money managers
and conduct their own research within a bundled fee program. Schwab’s fees are
charged in addition to fees charged by our Firm. Access provides money manager
services and Schwab’s brokerage and custody services for a simple, asset-based fee
and with streamlined paperwork. Features include single contract structure, low
account minimums, bundled fees, manager and strategy flexibility and variety,
performance reporting and managed account tools and resource.
Access to managers in this program is offered at the following account levels:
$100,000 for Stock/Equity Managers and $250,000 for Bond/Fixed Income
Managers. Some money managers may have a higher account minimum.
Fee Schedule
Depending on the service utilized, fees for the Alliance Wrap Platform services may be up
to 1.50% plus the “Marketplace” Subadvisor fees or the “Select” or “Access” program fees.
Our Alliance Wrap Platform fee is charged pro-rata quarterly in advance based on the
value of your account on the last day of the previous quarter. The “Marketplace”
Subadvisor fees will be charged in accordance with the requirements of the
Subadvisor. Specifically, the periods during which the Subadvisor fees are charged,
whether charged in arrears or advance and the valuation methodology will be specific to
each Subadvisor. To calculate the “Select” or “Access” program fee, Schwab multiplies
the actual daily balance of your account by the daily pro rata portion of the annual rate
and then adds together the fees for each day of the month. The “Select” or “Access”
program fee is billed to your Account(s) monthly, which may result in your paying a
higher fee on an annual basis than the annual rate because of compounding.
Other Types of Fees & Expenses:
The fees not included in the advisory fee for our wrap services are charges imposed directly by a
mutual fund, index fund, or exchange traded fund which shall be disclosed in the fund’s
prospectus (i.e., fund management fees and other fund expenses), mark-ups and mark-downs,
spreads paid to market makers, fees for trades executed at a broker dealer other than Schwab,
wire transfer fees and other fees and taxes on brokerage accounts and securities transactions.
Wrap fee clients will not incur transaction costs for trades, whether the account is assessed an
asset-based or transaction-based fee. We will select which method may or may not result in the
lowest cost to us; however, Clients’ cost will not differ regardless of the method charged by the
custodian. We are a fiduciary and always strive to act in the best interest of the Client. There is
a conflict of interest in all wrap platforms since the adviser absorbs certain transaction costs.
The adviser has a financial incentive not to place transaction orders in those accounts since
doing so increases its transaction costs. Thus, an incentive exists to place trades less frequently
in certain wrap fee arrangements.
Wrap Fee Platform Recommendations
Our Firm may receive more compensation from the client’s participation in our wrap fee
platforms than if the client purchased our investment advisory services, Charles Schwab & Co.,
Inc.’s (Schwab) services and, as applicable, the services of the subadvisors separately. As
ADV Part 2A, Appendix 1 – Wrap Fee Brochure Page 7 Gilbert & Cook, Inc.
described below, Schwab makes other products and services available to us (see “Other Products
and Services Available to Us from Schwab”). Consequently, we may have an incentive to
recommend that a client participate in our wrap fee platforms and open account(s) with Schwab.
That incentive may be based on our interest in receiving the products and services rather than
based on the client’s interest in having the most appropriate fee arrangement for our investment
advisory services and the best value in custody services and the most favorable execution of
client transaction. We believe, however, that our recommendation to our wrap fee platforms,
including the use of Schwab as custodian and broker, is in the best interests of those of clients to
whom we recommend it based on (a) an assessment of their investment objectives, financial
situation, our investment plans and anticipated trading activity in their accounts and all other
relevant factors, and (b) the scope quality and price of Schwab’s services and not based on
Schwab’s payment for third party services that benefit only us.