Item 5. Fees and Compensation
We are paid for our services through fees based on a percent of all assets in client accounts. We do not receive
compensation for the sale of securities or other investment products. We only make money through our asset-based fees
that we charge for our services. The more assets there are in your account, the more you will pay in fees. We may
encourage you to increase the assets in your account for a variety of reasons which may include account consolidation, the
need to invest additional funds, our investment style, account performance and our relationship. Although this may be a
potential conflict of interest, we are bound as fiduciaries to act with your best interests in mind.
Gaia Capital Management, Inc. – Investment Adviser Brochure (ADV Part 2A) 4
Our accounts at Fidelity Clearing and Custody Solutions (FCCS) have no account fees; however, accounts at other custodians
may be charged administration and set-up fees. In addition to our investment management fee, accounts may incur
commissions or trading fees on investment transactions in client accounts. Commissions and transaction fees vary by
broker-dealer and may be less at other brokerage houses. We do not receive any of these commissions or transaction fees.
See Item 12 (Brokerage Practices) concerning brokerage of client accounts.
Investment Management Fees
Our fees for individually managed accounts begin at 1.15% for the first $100,000. Fees on amounts over $100,000 are
calculated in bands, each of which decrease at $500,000, $1million and $2 million. Our minimum annual fee is $75, reduced
to $25 for new contributory retirement accounts through an employer retirement plan. Fees are pro-rated and billed
monthly. At our discretion, we may negotiate a lower fee.
By default, fees are deducted monthly from client accounts; however, clients with individually managed accounts may
request direct billing instead. Fees are calculated from the value of all client assets (for the entire household) as of the last
day of the preceding month, pro-rated for monthly billing. The invoice amount is provided to the client and the qualified
custodian of client funds and assets when billed.
Clients pay fees for the current month in advance. If our service agreement is terminated before the end of the billing
period, we will refund the unearned fee, pro-rated to the date of termination. We do not charge a fee to terminate our
service agreement, which may be done at any time.
Individually Managed Account Annualized Fee Schedule
Ending Account Balance (rounded to nearest dollar): Tiered Fee:
$ 1 to $ 100,000 1.15% of assets
$ 100,000 to $ 500,000 $ 1,150 + 0.85% over $ 100,000
$ 500,000 to $1,000,000 $ 4,550 + 0.68% over $ 500,000
$1,000,000 to $2,000,000 $ 7,950 + 0.58% over $1,000,000
$2,000,000 and above $13,750 + 0.55% over $2,000,000
Qualified Retirement Plan Fees
Fees for 3(38) fiduciary services to qualified retirement plans range from 0.75% annually for the first $2 million of plan
assets to 0.15% annually for plan assets of $10 million or more. Fees are determined through negotiation depending on the
plan and complexity. Fees are pro-rated and billed quarterly.