All Investment Management Account clients complete the Saturna Capital Investment Management Agreement, which details the terms of our relationship. Investment Management Accounts require a minimum initial account balance of $1 million, that may be waived at Saturna's discretion.
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 reasonable in light of the services provided and, as such, Saturna does not generally negotiate fees. 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.
|Account Value||Annual Rate|
Clients have the option of purchasing investment products Saturna recommends through other brokers or agents not affiliated with Saturna. There are no brokerage commissions when securities are traded through Saturna Brokerage Services, Inc. ("SBS"). When clients select SBS as their broker, the single asset-based advisory fee includes investment management, trading, and custody ("wrap fee").
Fees are computed and deducted from accounts after the end of each quarter, based on account's value at the end of the quarter. Fees are paid arrears and deducted from client's assets. There is no fee for the initial (partial) quarter. Either party may cancel contracts at any time without penalty. Saturna Capital may change fees only after 60 days written notice. The advisory agreement authorizes Saturna to deduct advisory fees directly from your account. When the agreement covers more than one related account, assets are combined when calculating annual advisory fee reductions.
To minimize potential conflicts of interest, Saturna Capital excludes client assets invested in mutual funds that Saturna Capital manages or for which Saturna Brokerage Services receives a distribution fee or other payment from the amount on which advisory fees are computed. This can substantially reduce the net fee an advisory client pays.
A wrap fee program such as that offered by Saturna may cost clients more or less than purchasing such services separately, depending on factors such as broker selection, custody services, and trading volume in the client's account. Clients pay additional fees for services not covered under the Investment Management Agreement, such as outgoing wire transfers. For more details, please see Saturna's Form ADV Part 2A – Appendix 1, Wrap Free Program brochure , available upon request or on our Document & Forms page.
Saturna does not provide compensation for Investment Management Account 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 in Saturna's Form ADV Part 2 brochure , available upon request and on our Document & Forms page.
Fees for Pooled Investment Funds vary by contract and are negotiated.