Item 5. Fees and Compensation
GMG offers its services on a fee basis and its fees are based upon assets under management.
Investment Management Fee
GMG provides investment management services for an annual fee based upon a percentage of the market
value of the assets being managed by GMG. GMG’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.
GMG does not, however, receive any portion of these commissions, fees, and costs. GMG’s annual fee is
prorated and charged monthly, in arrears, based upon the market value of the assets being managed by
GMG on the last day of the month. The annual fee varies (between 0.25% and 1.00%) depending upon
the market value of the assets under management and the type of investment management services to be
rendered.
GMG's fees are based on the market value of client assets under management, including cash, accrued
interest, accrued dividends, and securities purchased on margin. GMG, 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 bono activities, etc.). For certain clients, the Firm
charges an advisory fee for services provided to the held-away accounts mentioned above in Item 4, just
as the Firm does with client accounts held at the primary custodians(s). The specific fee schedule charged
by us is provided in the client’s investment Advisory Agreement.
Additional Fees and Expenses
In addition to the advisory fees paid to GMG, clients also incur certain charges imposed by other third
parties, such as broker-dealers, custodians, trust companies, banks and other financial institutions
(collectively “Financial Institutions”). These additional charges include securities brokerage commissions,
transaction fees, custodial fees, fees attributable to alternative assets, fees charged by the Independent
Managers, margin and other borrowing costs, charges imposed directly by a mutual fund or ETF in a client’s
account, as 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. The Firm’s brokerage practices are
described at length in Item 12, below. The Firm charges its agreed upon investment management fee for
client investments in privately placed securities (including private equity funds, hedge funds, or other
collective vehicles). While these investments may have lesser liquidity, the Firm charges the full fee due
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Disclosure Brochure
to the extra initial and ongoing due diligence required in addition to factoring the investments in to the
client’s overall asset allocation.
GMG offers clients the option of obtaining certain financial solutions from unaffiliated third-party financial
institutions through UPTIQ Treasury & Credit Solutions, LLC (together with UPTIQ, Inc. and its affiliates,
“UPTIQ”). Focus Financial Partners, LLC (“Focus”) is a minority investor in UPTIQ, Inc. UPTIQ is
compensated by sharing in the revenue earned by such third-party financial institutions for serving GMG’s
clients. The revenue paid to UPTIQ also benefits UPTIQ Inc.’s investors, including Focus, GMG’s parent
company. When legally permissible, UPTIQ also shares a portion of this earned revenue with GMG’s
affiliate, Focus Solutions Holdings, LLC (“FSH”). For non-residential mortgage loans made to GMG’s
clients, UPTIQ will share with FSH up to 25% of all revenue it receives from such third-party financial
institutions. For securities-backed lines of credit (“SBLOCs”) made to GMG’s clients, UPTIQ will share with
FSH up to 75% of all revenue it receives from such third-party financial institutions. For cash management
products and services provided to GMG’s clients, UPTIQ will share with FSH up to 33% of all revenue it
receives from the third-party financial institutions and other intermediaries that provide administrative and
settlement services in connection with this program. This earned revenue is indirectly paid by GMG’s clients
through an increased interest rate charged by the third-party financial institutions or, for cash balances, a
lowered yield. FSH distributes this revenue to GMG when we are licensed to receive such revenue (or
when no such license is required) and the distribution is not otherwise legally prohibited. Further information
on this conflict of interest is available in Item 10 of this Brochure.
Direct Fee Debit
Clients provide GMG and/or certain Independent Managers with the authority to directly debit their accounts
for payment of the investment advisory fees. The Financial Institutions that act as the qualified custodian
for client accounts, from which the Firm retains the authority to directly deduct fees, have agreed to send
statements to clients not less than quarterly detailing all account transactions, including fees directly debited
from the account and remitted to GMG. Alternatively, clients may elect to have GMG send a separate
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