Item 5: Fees and Compensation
Fees with respect to Direct Clients
Management Fee Schedule:*
Annual Fee (%)
Emerging Markets Equity 1.00
Total Return & Income 0.75
Municipal Income 0.75
Global Resources Equity 1.00
* Generally, Newgate’s management fees are based on the net asset value of the account, including
cash, as shown on the initial and quarterly appraisals performed by Newgate. Management fees may
vary from the applicable fees in the schedule above due to the particular circumstances of the client or as
otherwise negotiated with particular clients, which may result in the client paying fees that are actually
higher or lower than the fees represented in the table above. Newgate may give consideration to certain
services provided by the custodian in determining its management fees. These services may include, but
are not limited to, downloads of client data, marketing and client servicing support.
Clients are typically billed in advance on a quarterly basis for management fees incurred. However,
clients may negotiate to have management fees calculated and paid in arrears. Clients may elect to
authorize Newgate to deduct fees from their custodial accounts or pay Newgate directly. If a client’s
advisory contract is terminated before the end of the billing period, Newgate will process a refund of pre-
paid fees on a prorated basis.
In addition to Newgate’s management fees, clients may pay custodian fees. Clients generally will incur
brokerage and other transaction costs. Please see Item 12 below for more information regarding
brokerage.
Client accounts that contain investment company securities (e.g., mutual funds, closed- or open-end
funds and exchange traded funds (“ETFs”)) will pay layered fees. Fee layering occurs because clients
pay their share of the underlying fund expenses, including custodian fees, associated with the investment
company security. To the extent client accounts contain investment company securities, they will pay
those underlying costs in addition to the management fees charged by Newgate and any wrap fees
separately charged to the client account.
Fees with respect to the Fund
Newgate does not charge the Fund directly for investment management services rendered. Rather, each
investor in the Fund pays an advisory fee (generally determined in accordance with the above fee
schedule) to Newgate for investment management services pursuant to such client’s investment
management agreement with Newgate.
Fees with respect to Wrap Fee and UMA Programs
As summarized above in Item 4, Newgate participates in certain wrap fee programs. In the case of single
contract wrap programs and UMA programs, the client pays a single fee to the wrap program sponsor
and the sponsor pays a portion of the fee received from the client to Newgate for its services to the client.
In the case of an SMA dual contract wrap program, the client generally pays Newgate its fees directly.
These fees, which are separate from and in addition to the wrap fees the client pays to the program
sponsor, are specified in the separate investment advisory agreement between the client and Newgate.
Performance Fees
In certain situations, Newgate receives fees based on criteria other than a percentage of assets under
management, such as a fee based on the performance of the account. Newgate may enter into such fee
arrangements alone or in combination with compensation based on assets under management. See Item
6 below for more information.