Gemmer Asset Management LLC (“Gemmer”) has been in business since 1992. Gemmer is a
100% employee-owned business. As of December 31, 2023, its primary owners are Brian
Gemmer, Charles Blankley, and Scott Gemmer. Founder and Principal, David L. Gemmer, is
active in the business and is a key member of Gemmer’s management team. Gemmer manages
over $1.7 billion in client discretionary assets as of December 31, 2023.
Portfolio Management Services
Our firm provides portfolio management services for individual clients and small businesses.
Following are investment services we offer for managing individual portfolios:
• Gemmer Select
• Gemmer Premier
• Gemmer Unconstrained
These investment services incorporate an asset allocation strategy consisting primarily of no-load
mutual funds, and/or exchange-traded funds (ETFs). Our investment portfolios are generally
limited to only these types of investment vehicles. Individual stock and bond holdings are held in a
small number of client accounts; however, these holdings are incidental to our primary investment
strategies. For all strategies, we hold a limited power-of-attorney to manage such assets on a
discretionary basis.
We use the services of the following types of Personal Financial Advisors (PFAs) to introduce our
investment management services to prospective clients:
• independent contractors;
• financial planners;
• investment advisors; and/or
• registered representatives of registered broker-dealers
Pursuant to Rule 206(4)-1 of the Investment Advisors Act of 1940, PFAs are compensated for
endorsing our firm. Compensation is paid solely from our investment advisory fee and may result
in additional charges to the client that otherwise would not have been incurred if such
compensation were not paid to the PFA. Each prospective client is provided with a copy of
Gemmer’s firm brochure (ADV Part 2A) and customer relationship summary (form CRS) prior to
engagement, as well as written PFA Disclosure Statement which discloses the endorsement
(referral) relationship between Gemmer, the PFA, and the client.
There are Investment Advisor Representatives (IARs) associated with our firm. IARs perform a
variety of tasks, including overseeing investment accounts, handling the day-to-day management
of client accounts, and providing general investment advice to Gemmer’s clients.
Sub-Advisory Engagements
Gemmer serves as a sub-advisor to certain unaffiliated registered investment advisors per the terms
and conditions of written sub-advisory Agreements. With respect to its sub-advisory services, the
unaffiliated investment advisors that engage Gemmer’s sub-advisory services maintain both the
initial and ongoing day-to-day relationship with the underlying client, including initial and ongoing
determination of suitability for Gemmer’s designated investment strategies. If Gemmer is directed
to use a specific custodian/broker-dealer to execute transactions, Gemmer will be unable to
negotiate commissions and/or transaction costs, and/or seek better execution. As a result, an
investor may pay higher commissions or other transaction costs or greater spreads or receive less
favorable net prices on transactions for the account than would otherwise be the case through
alternative clearing arrangements recommended by Gemmer. Higher transaction costs adversely
impact account performance. The unaffiliated investment advisor provides Clients with a copy of
Gemmer’s written disclosure brochure as set forth on Part 2A of Form ADV. If agreed upon in
writing, Gemmer shall be permitted to debit the Client’s account for advisory fees. When Gemmer
serves as a sub-advisor, the way in which fees are calculated may reflect the methodology of the
client’s primary investment advisor. Fee rates, calculations, and methodology are disclosed to each
client or prospective client prior to entering into a relationship with Gemmer.
Consulting Arrangements
Gemmer engages with unaffiliated advisors to assist with the management of all or a portion of a
client’s assets per the terms and conditions of a written consulting agreement between Gemmer
and the unaffiliated advisor. At all times, the unaffiliated advisor maintains both the initial and
ongoing day-to-day relationship with the client, including exclusive responsibility for initial and
ongoing client suitability and account performance.
Client Services
Our mission is to assist our clients by providing:
• unbiased, professional advice;
• a disciplined management strategy; and
• appropriate investments to meet individual goals.
The following are ways in which we manage accounts based on the individual needs of each client:
• Consultation – we are available to consult about the status of a client’s account;
• Periodic Statements – custodians provide each client with a statement at least
quarterly containing a description of all activity in their account during the preceding
period;
• Ability to Impose Restrictions – each client has the ability to impose reasonable
restrictions on the management of their account, including the ability to instruct our
firm not to purchase certain mutual funds or exchange-traded funds;
• No Pooling – each client’s beneficial interest in a security does not represent an
undivided interest in all the securities held by the custodian, but rather represents a
direct and beneficial interest in the securities which comprise the client’s account;
• Separate Account – a separate account is maintained at a custodian for each client;
• Ownership – each client retains ownership of their account (e.g., the right to
withdraw securities or cash, exercise, or delegate proxy voting, and receive
transaction confirmations).
Miscellaneous Items
Financial Planning/Consulting Services
Except for periodic retirement analyses and assistance in determining goals incidental to the
investment management process, we generally do not provide comprehensive financial planning or
related consulting services. Additionally, none of our employees, nor affiliated advisors, serve as
an attorney, accountant, or insurance agent, and no portion of our services should be construed as
the same. Certain Investment Advisor Representatives affiliated with Gemmer
provide financial
planning services to clients at no additional cost to the client, as disclosed in item 10 of this
Brochure.
Endorsements: Introduction by Personal Financial Advisor
The U.S. Securities & Exchange Commission adopted a New Marketing Rule (“The New Rule”)
in May of 2021. Referral activities of registered investment advisors, previously regulated under
the Cash Solicitation Rule (since rescinded), are now regulated under The New Rule. The SEC
largely dropped the use of the term “solicitor” and has interpreted solicitation and referral activities
as providing an endorsement. Our firm is compliant with the provisions of The New Rule.
Most clients are introduced to our firm by an unaffiliated investment professional who is also
referred to as a Personal Financial Advisors (PFA). If a client is introduced to our firm by a PFA,
Gemmer pays a portion of its ongoing management fee to the PFA for endorsing Gemmer and for
the PFA’s initial and/or ongoing services. Compensation paid to PFAs, as well as ongoing duties
performed by PFAs, are disclosed to each prospective client prior to entering into an advisory
agreement with Gemmer, in compliance with the Marketing Rule 206(4)-1 under the Investment
Advisers Act of 1940.
A PFA is exclusively responsible for: (i.) assisting the client in determining the initial and ongoing
suitability for our investment strategies; and (ii.) for receiving/ascertaining the client’s directions,
notices, and instructions, and forwarding them to us, in writing. Clients are responsible for
communicating any such directions or instructions directly to the PFA. Gemmer may rely upon
any such direction, notice, or instruction (including any information or documentation regarding
client’s investment objectives, risk tolerances and/or investment restrictions). Gemmer assumes no
responsibility to the client for the failure of the PFA and/or the client to timely
receive/ascertain/forward/communicate any and all such directions, notices, and instructions.
Client Obligations. In performing our services, we do not independently verify information
received from the client or from the client’s other professionals, including the PFA; we are
expressly authorized to rely on the accuracy of information provided to us. Moreover, each client
is advised that it remains his/her/its responsibility to promptly notify their PFA if there is any
change in his/her/its financial situation or investment objectives.
Retirement Rollovers
ERISA Fiduciary Acknowledgement / DOL Rule PTE 2020-02:
Effective February 16, 2021, the Department of Labor (DOL) implemented an expanded definition
of “fiduciary advice.” The new definition causes RIA services previously considered non-fiduciary
under ERISA to be subject to a fiduciary best interest standard of conduct. The DOL established a
prohibited transaction exemption (PTE) for fiduciary advice, meant to allow advisors to provide
recommendations and collect compensation for IRA rollovers as long as they comply with the
requirements outlined in Rule PTE-2020-02. When we provide a rollover recommendation to Plans
or IRA owners, we i.) acknowledge our fiduciary status to prospective clients and clients, ii.)
provide written disclosures about the scope of our relationship and conflicts of interest, and iii.)
provide prospective clients and clients with written disclosures about rollovers.
Retirement Monies - Options:
A client leaving an employer typically has four options (and may engage in a combination of these
options): i) leave the money in his or her former employer’s plan, if permitted, ii) rollover the
assets to his or her new employer’s plan, if one is available and rollovers are permitted, iii) rollover
to an IRA, or iv) cash out the account value (which could, depending upon the client’s age, result
in adverse tax consequences). We may recommend an investor rollover plan assets to an
Individual Retirement Account (IRA) managed by our firm. As a result, we and our representatives
will earn an asset-based fee. In contrast, a recommendation that a client or prospective client leave
his or her plan assets with his or her old employer or roll the assets to a plan sponsored by a new
employer will generally result in no compensation to Gemmer (unless you engage our firm to
monitor and/or manage the account while maintained at your employer). We have an economic
incentive to encourage an investor to roll plan assets into an IRA that we will manage or to engage
our firm to monitor and/or manage the account while maintained at your employer. There are
various factors that we consider before recommending a rollover, including but not limited to: i)
the investment options available in the plan versus the investment options available in an IRA, ii)
fees and expenses in the plan versus the fees and expenses in an IRA, iii) the services and
responsiveness of the plan’s investment professionals versus ours, iv) protection of assets from
creditors and legal judgments, v) required minimum distributions and age considerations vi)
employer stock tax consequences, if any and vii) the ability to withdraw money in an employer's
plan versus an IRA. When we make recommendations, we are bound by Impartial Conduct
Standards under ERISA. This means we will act in each client’s best interest; we will only charge
reasonable fees, and we will be transparent and disclose conflicts of interest. No client is under any
obligation to rollover plan assets to an IRA managed by our firm or to engage our firm to monitor
and/or manage the account while maintained at your employer. ANY QUESTIONS: Our Chief
Compliance Officer is available to address any questions that a client may have regarding the
above and the corresponding conflict of interest presented by such engagement.
Use of Mutual Funds
Many mutual funds are available directly to the public. Thus, a prospective client can obtain many
of the mutual funds that we recommend and/or utilize independent of engaging us as an investment
advisor. However, if a prospective client determines to do so, he/she will not receive Gemmer’s
initial and ongoing investment advisory services. We have procedures in place when purchasing
mutual funds to ensure the appropriate share class is purchased for each client. We strive to
provide the lowest fund cost when purchasing mutual funds for a client account.