Kathmere Capital Management (“Kathmere
Capital”) provides clients with advisory services
which primarily include investment management,
financial planning and/or retirement plan consulting.
When engaged in an advisory relationship, we act
in the capacity of a fiduciary and as such, are
obligated and committed to placing the interests of
our clients first at all times.
Kathmere Capital Management, LLC is a Limited
Liability Company organized in the Commonwealth
of Pennsylvania. Kathmere Capital was formed in
July 2019.
Michael P. McDermott is the principal owner of
Kathmere Capital.
As of December 31, 2022, Kathmere Capital
managed $1,272,927,282 in assets, of which
$1,270,668,641 is managed on a discretionary
basis and $2,258,641 is managed on a non-
discretionary basis. Additionally, the firm provides
pension consulting services over an additional
$732,197,714 in pension plan assets.
Investment Management Services
We provide investment management services to
individual (i.e., individual or high net worth
individual) and institutional (i.e., charitable
organization, corporation, endowment or
foundation, etc.) asset owner clients. We provide
these services primarily on a discretionary basis;
however, in certain circumstances, clients have
engaged us to provide non-discretionary
investment advisory services.
We provide investment management services
specific to the needs of each individual client. Each
of our clients work directly with one or more of our
Investment Adviser Representatives who, prior to
formulating any investment allocation
recommendation, work with our clients to ascertain
each client’s general financial situation, investment
objectives, liquidity needs, time horizon and risk
tolerance, as well as any special considerations
relevant to the formulation of the client’s investment
program. Thereafter, we generally recommend and
allocate each individual client’s assets to one or
more of our asset allocation model portfolios which
vary across multiple dimensions including overall
risk profile, the degree to which active management
risk is assumed and account tax status. It should be
noted, however, that we do not limit our advice to
any specific class of securities and that other
security types and investment options are
frequently used in the construction of client
portfolios.
Subsequent to the initial implementation of a
client’s portfolio, our ongoing review and
management of the portfolio occurs at three distinct
levels: (i) at the model portfolio level wherein our
Investment Department and Investment Committee
regularly monitor and modify the asset allocation
and security selection within each model as
necessary, (ii) at the client account level wherein
the Investment Department periodically monitors
each account to ensure that portfolio allocations are
within an acceptable variance around established
targets and (iii) at the individual client level wherein
our Investment Adviser Representatives work
directly with individual clients to review portfolio
construction and account performance and to
continually reaffirm and/or modify the model
recommendations as appropriate given changes in
a client’s individual financial circumstances or
investment objectives.
Clients may, at any time, request restrictions on or
customizations to their accounts. However, we
reserve the right not to accept and/or terminate the
management of a client account if we feel that the
customizations or restrictions imposed by the client,
in our opinion, prevent us from managing the
account in a manner that is consistent with the
client’s stated investment objectives.
Family Office Services
In keeping with our core purpose of bringing clarity
and confidence to our clients about all aspects of
their financial lives, we provide many of our
Investment Management Services clients with
independent and objective advice on a variety of
financial matters free of any additional explicit
charges or fees. Financial topics covered typically
include: retirement planning, education planning,
investment tax planning, concentrated stock/stock
option planning and management, business
succession planning, insurance and risk-
management planning, estate and legacy planning,
social security analysis and planning, and elder
care planning, among many others topics. For
many of our clients we also work in close
partnership with the client’s other trusted advisors,
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including accountants and attorneys, to ensure
maximum efficiency and comprehensiveness. At
times, we may recommend the services of other
professionals, such as attorneys and accountants,
for certain non-investment implementation
purposes. It should be noted that our clients are
under no obligation to work with any such
professional.
Financial Planning and Consulting Services
(Stand-Alone)
In certain circumstances, clients engage
us to
provide financial planning and/or consulting
services on a stand-alone, separate fee basis. Our
financial planning and consulting advice generally
include written and/or oral advice and analysis
covering a variety of topics both investment and
non-investment related, including but not limited to:
retirement or education funding, analysis or review
of specific investment products or strategies,
personal and business insurance, qualified and
non-qualified benefit plans and estate planning,
among other topics.
Retirement Plan Consulting Services
We also offer advisory and consulting services to
corporate and non-profit retirement plans and plan
sponsors. We generally act as either a co-fiduciary
under Section 3(21) of the Employee Retirement
Income Security Act of 1974 (“ERISA”) or as an
Investment Manager under section 3(38) of ERISA.
When acting as a fiduciary, as defined in ERISA in
Section 3(21), we provide non-discretionary
investment advice regarding the selection and
monitoring of the plan’s investment options. When
acting as an Investment Manager to a plan, as
defined in ERISA Section 3(38), we assume
discretionary authority to make decisions regarding
the investment options made available to plan
sponsors.
Regardless of whether we are acting under
Sections 3(21) or 3(38), our Retirement Plan
Consulting Services generally include supporting
plan sponsors and retirement plan participants with
the following:
• Ongoing administration of the plan:
o Assisting plan fiduciaries with the selection of
providers.
o Monitoring and benchmarking plan fees on a
regular basis.
o Assisting with fiduciary oversight and
committee education.
• Plan lineup construction and investment
selection and monitoring
o Developing and updating an investment
policy statement to govern the selection and
ongoing monitoring of the plan’s specific
investment options.
o Advising on plan lineup construction as it
relates to the various types of asset classes
to include in the plan lineup.
o Recommending and monitoring the specific
investment options included in the plan
lineup.
• Education and advice services to plan
participants
o Educating plan participants about general
investment principles and the investment
alternatives available in the plan lineup.
o Assisting with individual and/or group
enrollment meetings designed to increase
plan participation and overall financial
knowledge among plan participants.
o Providing one-on-one advice to plan
participants regarding their investment
options under the plan. Plan participants
are responsible for implementing
transactions in their own account.
As part of our investment advisory services to you,
we may recommend that you withdraw the assets
from your employer's retirement plan and roll the
assets over to an individual retirement account
("IRA") that we will manage on your behalf. If you
elect to roll the assets to an IRA that is subject to
our management, we will charge you an asset-
based fee as set forth in the agreement you
executed with our firm. This practice presents a
conflict of interest because persons providing
investment advice on our behalf have an incentive
to recommend a rollover to you for the purpose of
generating fee-based compensation rather than
solely based on your needs. You are under no
obligation, contractually or otherwise, to complete
the rollover. Moreover, if you do complete the
rollover, you are under no obligation to have the
assets in an IRA managed by our firm.
Many employers permit former employees to keep
their retirement assets in their company plan. Also,
current employees can sometimes move assets out
of their company plan before they retire or change
ADV Part 2A: 07/17/2023 6
jobs. In determining whether to complete the
rollover to an IRA, and to the extent the following
options are available, you should consider the costs
and benefits of: 1)) Leaving the funds in your
employer's (former employer's) plan; 2) moving the
funds to a new employer's retirement plan; 3)
cashing out and taking a taxable distribution from
the plan; and/or 4) rolling the funds into an IRA
rollover account. Each of these options has
advantages and disadvantages and before making
a change we encourage you to speak with your
CPA and/or tax attorney. Our recommendations
may include any of them, depending on what we
feel is in your best interest.
We are fiduciaries under the Investment Advisers
Act of 1940 and when we provide investment
advice to you regarding your retirement plan
account or individual retirement account, we are
also fiduciaries within the meaning of Title I of the
Employee Retirement Income Security Act and/or
the Internal Revenue Code, as applicable, which
are laws governing retirement accounts. As a
fiduciary, we are required to document the
reason(s) for why the recommendation we made is
in your best interest.