Item 5. Fees and Compensation
Gatemore offers its services on a fee basis, which may include fixed fees, as well as fees based upon
assets under management or the performance of the client’s portfolio.
Investment Management Fee
Gatemore generally charges an annual fixed fee for investment management services . The fixed fee will
be negotiated with the client (based on factors such as assets under management, assets under
advisement, type of services to be rendered) and will be billed quarterly in arrears. Gatemore also
charges certain clients an annual fee based upon a percentage of the market value of the assets being
managed by Gatemore. Gatemore’s annual fee is exclusive of, and in addition to brokerage
commissions, transaction fees, and other related costs and expenses which are incurred by the client.
Gatemore does not, however, receive any portion of these commissions, fees, and costs. Gatemore’s
annual fee is prorated and charged quarterly, in arrears, based upon the market value of the assets being
managed by Gatemore on the last day of the previous quarter. The annual fee varies (generally between
0.50% and 1.50%) depending upon the market value of the assets under management and the type of
investment management services to be rendered.
Performance Fee
Gatemore may render investment management services to qualified clients for a performance-based fee
in accordance with the requirements set forth in applicable laws, rules, and regulations. For those clients,
Gatemore charges a fee based upon a percentage of the market value of the assets being managed by
Gatemore (“base fee”) in addition to a fee based on the performance of the account (“performance fee”).
Gatemore may charge a performance fee up to fifteen percent (15%) of the net performance by which the
ending value of the account exceeds the beginning value of the account subject to a high water mark.
Gatemore also charges a base fee of up to one percent (1.00%).
Gatemore’s annual base fee is prorated and charged quarterly, in arrears, based upon the market value
of the assets on the last day of the previous quarter. Gatemore’s performance fee is charged annually, in
arrears, based on the net gains of the client’s portfolio at the end of the calendar period.
Gatemore, in its sole discretion, may negotiate to charge a lesser management fee based upon certain
criteria (i.e., anticipated future earning capacity, anticipated future additional assets, dollar amount of
assets to be managed, related accounts, account composition, pre-existing client, account retention, pro
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Gatemore Capital Management, LLC Disclosure Brochure
bono activities, etc.). Clients are advised that a conflict of interest exists for the Firm to recommend that
clients engage Gatemore for additional services for compensation, including rolling over retirement
accounts or moving other assets to the Firm’s management. Clients retain absolute discretion over all
decisions regarding engaging the Firm and are under no obligation to act upon any of the
recommendations.
Fees Charged by Financial Institutions
As further discussed in response to Item 12 (below), Gatemore may recommend that clients utilize the
brokerage and clearing services of Goldman Sachs & Co. (”Goldman Sachs”) and/or Charles Schwab &
Co., Inc. (“Schwab”) for investment management accounts.
Gatemore may only implement its investment management recommendations after the client has
arranged for and furnished Gatemore with all information and authorization regarding accounts with
appropriate financial institutions. Financial institutions include, but are not limited to, Goldman Sachs,
Schwab, any other broker-dealer recommended by Gatemore, broker-dealer directed by the client, trust
companies, banks etc. (collectively referred to herein as the “Financial Institutions”).
Clients may incur certain charges imposed by the Financial Institutions and other third parties such as
fees charged by Independent Managers, custodial fees, charges imposed directly by a mutual fund or
ETF in the account, which are disclosed in the fund’s prospectus (e.g., fund management fees and other
fund expenses), 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. Additionally,
clients may incur brokerage commissions and transaction fees. Such charges, fees and commissions are
exclusive of and in addition to Gatemore’s fee.
Gatemore’s Agreement and the separate agreement with any Financial Institutions may authorize
Gatemore or Independent Managers to debit the client’s account for the amount of Gatemore’s fee and to
directly remit that management fee to Gatemore or the Independent Managers. Any Financial Institutions
recommended by Gatemore have agreed to send a statement to the client, at least quarterly, indicating all
amounts disbursed from the account including the amount of management fees paid directly to
Gatemore. Alternatively, clients may elect to have Gatemore send an invoice for payment.
Fees for Management During Partial Quarters of Service
For the initial period of investment management services, the fees are calculated on a pro rata basis.
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