ITEM 5 | Fees and Compensation
The Firm does not have a predetermined fee schedule and negotiates the fees applicable to each
Client Mandate based on a number of factors, including but not limited to: the size of the investment
portfolio being managed; the expected composition of the portfolio; and other factors related to the
intensity with which the portfolio managers will need to manage the portfolio. GML adopts this
approach to ensure that it can provide the level of resources required to effectively manage each
portfolio and not compromise its objective of providing a good outcome for each client.
To finance the provision of core services, the Firm generally seeks to structure fees on the basis of a
monthly fixed percentage of the value of assets under management (a “Monthly Management
Fee”, which is typically in the range 0.50-2.00% per annum). A share of the increase in value of the
portfolio (a “Performance Fee”), or other incentive fees, may then also be agreed to align the
interests of the Firm’s portfolio managers with those of its clients. Both fees are only charged to
you in the currency of the portfolio the Firm manages, as a deduction from the portfolio (under an
agency agreement between the Firm and you), generally on the basis of an external valuation of the
underlying investments.
Monthly Management Fees and Performance Fees both typically fall due for payment in the month
following each relevant valuation date for a relevant portfolio. Depending upon the circumstances,
GML may also levy an initial charge with respect to subscriptions in certain Funds. The amount of
and reason for this charge, if any, will be fully explained to you prior to acceptance of funds under
management for a Client Mandate. Such initial charges are generally levied infrequently, and in the
last twelve months the Firm has not had occasion to request any such charges from prospective
clients.
In addition to the Monthly Management Fee charged by the Firm, you will be required to pay (or
experience deductions from portfolio value in relation to) any applicable taxes and external fees or
costs associated with the ownership of your assets, in the same way as you would pay such costs if
you managed the investments yourself. The Firm makes clear in advance of accepting a Client
Mandate which costs will be charged against your portfolio, and these can typically include, but are
not limited to: execution costs, legal fees, custody fees, investment specific costs and, in the case of a
Fund, professional fees such as those levied by the Fund’s administrator, custodian and auditor.
No other direct or (hidden) indirect charges are levied by the Firm. Furthermore, no administrative
costs of the Firm are covered by third parties executing trades in your portfolio, for example, by
way of “soft dollar” commission arrangements (whereby a portion of brokerage fees charged to
your portfolio by an executing broker is, in effect, rebated back to the Firm by the executing broker
paying for ancillary services that would otherwise have been a direct and visible cost).
There are some occasions when companies in the same corporate group as GML may provide
services to GML and the portfolios it manages, but any fees charged by the group of which the Firm
is a member are determined strictly on an arm’s length basis, with full disclosure, and only incurred
where it is in your best interests, i.e. where the fees are more competitive than those of other
external parties and/or the service provided is deemed by the portfolio managers to be superior to
that available from unconnected parties. In this respect, the Firm is instructed by conflicts of
interest guidance from regulators and the relevant Client Mandate, as well as its own internal
conflicts of interest policy. In the last twelve months no group company has levied any fees against,
or in relation to, any of the asset portfolios managed by the Firm.