Item 5: Fees and Compensation
OIM earns investment management fees for investment advisory services, we negotiate these
fees with clients. Our standard fee for investment management services varies based on the
investment strategy being employed, a particular client’s profile, or as otherwise negotiated
with the client. These differences depend on various factors such as the type of client, the
client’s asset levels, a pre-existing relationship, the amount of servicing required for the client's
account, and the inception date of an account, among other things. Our fees are typically billed
quarterly, in advance, and are calculated as a percentage of the account’s assets under
management, up to 2.00% per annum (reference Fees Schedule below). The Management Fee
is established at the time when the investment advisory agreement is signed and is defined in
the investment advisory agreement.
The valuation on which fees are based may differ from the value reported by a client’s
custodian. Any unearned, prepaid fees will be returned upon termination of investment
management services to a client billed in advance. If a client terminates within five business
days after signing a contract, OIM will refund all prepaid fees, minus transactional charges.
If authorized, we will deduct our advisory fee directly from a client’s account, but only if such
account is held with a “qualified custodian” as defined under the Advisers Act. A statement
will be sent to the client or its financial intermediary detailing the portfolio’s value on which
the fee is based, the agreed-upon percentage(s), the calculation of the fee, and the amount due.
The accuracy of this information may or may not be verified by the client’s custodian. If direct
debiting is not selected, an invoice is either sent directly to the client or to its custodian or
consultant.
Fees Schedule (Fees are negotiable at OIM’s discretion)
Strategy Minimum Account Management Fee
Fixed Income $1 million 1.50%: USD 1m-2m
Government Securities 1.25%: USD 2m-10m
1.00%: USD 10m-20m
0.75%: Balance above USD 25m
Corporate debt securities $10 million 2.00%: Balance above USD 10m
FORM ADV Part 2A - Ornate Investment Managers - 6
Commercial paper $1 million 1.50%: USD 1m-2m
1.25%: USD 2m-10m
1.00%: USD 10m-20m
0.75%: Balance above
Certificates of deposit, $1million 1.50%: USD 1m-2m
structured notes & Guaranteed
Investment Certificates 1.25%: USD 2m-10m
1.00%: USD 10m-20m
0.75%: Balance above USD 25m
Municipal Securities $1 million 2.00%: Balance above USD 1m
$1 million 1.50%: USD 1m-2m
Options contracts on securities 1.25%: USD 2m-10m
and commodities
1.00%: USD 10m-20m
0.75%: Balance above USD 25m
Futures and Forward contracts $1 million 1.50%: USD 1m-2m
1.25%: USD 2m-10m
1.00%: USD 10m-20m
0.75%: Balance above USD 25m
Exchange Traded Funds $1 million 1.50%: USD 1m-2m
1.25%: USD 2m-10m
1.00%: USD 10m-20m
0.75%: Balance above USD 25m
FORM ADV Part 2A - Ornate Investment Managers - 7
Private Equity Funds, Hedge $1 million 2%
Funds, and other similar non
exchange traded
collective investment funds.
Investment Company $1 million 2%
Securities
Direct Investment $1 million 2%
Opportunities including
Limited Partnerships and
Direct Debt
Equity securities: Exchange $1 million 2%
listed, over-the counter and
foreign securities.
Warrants $1 million 1.50%: USD 1m-2m
1.25%: USD 2m-10m
1.00%: USD 10m-20m
0.75%: Balance above USD 25m
Additional Fees and Expenses:
In addition to the investment management fees that clients pay to OIM, they also pay
fees to third parties in connection with their managed accounts. Such fees may include but are
not limited to;
❏ custodial fees to their banks or other qualified custodians.
❏ fees to open certain foreign markets accounts; fees, transfer taxes, and/or stamp
duties of governments or regulators in jurisdictions where their securities are
purchased or sold;
❏ brokerage commissions or mark-ups/markdowns to broker-dealers who execute
transactions for their accounts
❏ consultants' fees in connection with asset allocation or other strategic decisions
affecting their accounts.
FORM ADV Part 2A - Ornate Investment Managers - 8