ITEM 5: FEES AND COMPENSATION
Fees for Investment Supervisory Services
The fee schedule for our investment advisory services is generally based upon a per-
centage of the client’s assets under our management and the overall investment structure of the
account. The specific manner in which we charge fees is established in our written agreement
with the client. Although our fees for our services may be negotiated under certain circum-
stances, our standard fee schedule is as follows:
Equity or Balanced Account
Assets Annual Fee
On the first $5,000,000 1.00%
On the next $20,000,000 0.75%
Amounts in excess of $25,000,000 0.50%
Fixed-Income Account
Assets Annual Fee
On the first $2,000,000 0.50%
On the next $3,000,000 0.40%
Amounts in excess of $5,000,000 0.25%
Generally, each client account is subject to a minimum account size of $1,000,000, but
we may waive this requirement at our sole discretion.
For new client relationships, the fees for our investment supervisory services are
generally billed quarterly in advance and are based on a percentage of the client’s assets under
our management. In certain circumstances, fees may be negotiated based upon considerations
such as size or type of account, the complexity of the relationship, type of client, composition of
assets, or specific investment or strategy. Negotiated fees may be higher or lower than those
described in this Brochure. Any such negotiated fee schedules are set forth in the client’s
investment management agreement.
Furthermore, in certain situations where we have negotiated fees, those fees may vary
based upon the portfolio structure of client account(s); for instance, we may have a different fee
schedule for assets comprised of fixed income investments or strategies versus equities
investments or strategies. Thus, in circumstances where we have negotiated a fee arrangement
and the client agreement grants us discretion to allocate assets among different investments or
strategies with different fee schedules, a potential conflict of interest may exist. We mitigate the
potential conflict by (a) offering our standard balanced fee schedule where the client’s fee is not
dependent upon the type of investments or strategies the client assets are invested in, and/or (b)
managing such relevant accounts consistent with our other client accounts, as more fully
described elsewhere within this Brochure.
Clients generally elect to authorize the custodian to debit our fees directly from the client
account. For clients that have chosen to have their fees debited from their account, we submit a
SEC Part 2A of Form ADV 4 Azimuth Capital Management LLC
March 30,2022
statement to the client’s custodian stating our fees for the quarter. Clients are sent a separate
copy of the statement of fees with their quarterly reporting package. Accounts initiated during a
calendar quarter are charged a prorated fee.
For purposes of calculating fees, we value a client’s account as of the last business day of
the quarter. Generally, the fee for a given quarter is calculated by applying the client’s fee
schedule to the quarter-end account value as reflected in our reporting system. More specific-
ally, the billing system we employ determines the fee for any quarter by multiplying (a) the
applicable annual fee percentage(s) from the client’s fee schedule by (b) the quarter-end value(s)
of the client’s account as reflected in our reporting system; and then dividing the result by four.
Each quarterly bill contains a detailed description of how the fee is calculated. Please note that
the values utilized to calculate fees may differ from those reported by the account custodian, as
further described in “ITEM 15: CUSTODY.”
We also have clients with existing relationships where the fee for investment advisory
services is billed quarterly in arrears based on the average monthly value of the client’s assets
under our management. For these existing client relationships, the fee for a given quarter is
generally calculated by applying the client’s fee schedule to the average of an account’s month-
end values as reflected in our reporting system in any quarter. More specifically, under this
method, the billing system we employ determines the fee for any quarter by multiplying (a) the
applicable client fee schedule by (b) the average of the month-end values of the client’s account
for the quarter as reflected in our reporting system; and then dividing the result by four. Each
quarterly bill contains a detailed description of how the fee is calculated.
Generally, the assets in client accounts are valued in our reporting system using prices
obtained from third-party services or custodians. For purposes of determining the value of the
assets in a particular strategy within a client account, we include accrued dividends, accrued
interest as well as the value of any assets acquired through the use of a Margin Loan (as
described below). In addition, for any particular strategy within a client account with an
allocation to cash, then the cash and cash equivalents, including bank deposits, “money market”
mutual fund or ETF shares, U.S. Treasury bills and similar instruments will be included for
purposes of determining the value of the assets in the particular strategy of the client account. In
the case of a Margin Loan, the value of the assets in the account utilizing a Margin Loan for the
purposes of calculating fees could be greater than the net account value (total account assets less
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