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Investment Management Accounts

All Investment Management Account clients complete the Saturna Capital Investment Management Agreement, which details the terms of our relationship.

The annual advisory fee for private Investment Management Accounts is $2,500, plus 0.5% of the first $5 million and 0.4% on amounts over $5 million; with a minimum quarterly fee of $1,250 (minimum $5,000 annually). Accounts with less than $1 million are limited to holding only equities and mutual funds. We believe this fee structure is most competitive, and is not negotiable. Extra fees or other arrangements may be mutually agreed depending upon the complexity of the services rendered. The following table illustrates the effective rate for accounts of varying value.

There are no brokerage commissions when securities are traded through Saturna Brokerage Services. The single asset-based fee is for investment management, trading, and custody ("wrap fee"). Further, the investment management fee is reduced for (1) multiple accounts, and (2) exclusion of assets on which Saturna is paid a fee; for example, by a fund, distributor, or broker. The Advisory Agreement authorizes your custodian to pay fees for Saturna's services from the custodian account(s) when such fees are invoiced by Saturna.

Fees are computed after the end of each quarter, based on the account’s value at the end of the quarter. There is no fee for the initial (partial) quarter. Contracts may be canceled by either party at any time without penalty.

Fees may be changed by Saturna Capital only after 60 days written notice.

To avoid any "double-dipping," Saturna Capital excludes client assets invested in mutual funds such as those that Saturna Capital manages or for which Saturna receives a 12b-1 fee or other payment. Any such amount is excluded from the amount on which its advisory fees are computed. This can substantially reduce the net fee an advisory client pays because these other fees may be considerably less than the fee you are charged if this waiver was not in place. For example, the fee rate charged on Investment Management Accounts is 0.50% of assets annually. From time to time, as much as half an individual account might be held in a money market fund, for which Saturna Brokerage currently receives a 0.15% annual distribution fee. In the example where an account is temporarily half in a money market fund, the asset based net fee received by Saturna Capital is thus 0.325% annually (not 0.50%) and the client still pays no brokerage commissions.

Saturna does not compensate for client referrals nor does it receive cash or other economic benefit from a non-client in connection with giving advice to clients. Investment Management Accounts may involve certain conflicts of interest, described further here.

Continue to Pooled Investment Funds