Item 5 Fees and Compensation
Portfolio Management Services
Our fee for portfolio management services is based on a percentage of your assets we manage and is set forth
in the following maximum fee schedule:
Assets Under Management Maximum Annual Fee
First $250,000 1.50%
$250,001 - $1,000,000 1.25%
$1,000,001 - $2,000,000 0.90%
$2,000,001 - $4,000,000 0.80%
Over $4,000,000 0.70%
Our annual portfolio management fee is billed and payable quarterly in advance based on the value of your
account on the last day of the previous quarter. Adjustments will be made for deposits and withdrawals made in
the account intra-quarter. Since the portfolio management fee is billed in advance, we will provide a pro-rata
adjustment to your advisory fee based on deposits and withdrawals that occurred in the prior quarter.
If the portfolio management agreement is executed at any time other than the first day of a calendar quarter,
our fees will apply on a pro rata basis, which means that the advisory fee is payable in proportion to the
number of days in the quarter for which you are a client. Our advisory fee is negotiable, depending on
individual client circumstances.
At our discretion, we may combine the account values of family members living in the same household to
determine the applicable advisory fee. For example, we may combine account values for you and your minor
children, joint accounts with your spouse, and other types of related accounts. Combining account values may
increase the asset total, which may result in your paying a reduced advisory fee based on the available
breakpoints in our fee schedule stated above. Additionally, for those portfolio management clients that also
participate in either of the Funds, we waive our advisory fee on the portion of assets invested in either or both
Funds.
We will deduct our fee directly from your account through the qualified custodian holding your funds and
securities. We will deduct our advisory fee only when you have given our firm written authorization permitting
the fees to be paid directly from your account. Further, the qualified custodian will deliver an account
statement to you at least quarterly. These account statements will show all disbursements from your account.
You should review all statements for accuracy. We will also receive a duplicate copy of your account
statements. In limited circumstances, certain clients are invoiced for their fees.
We rely on the market values provided by the qualified custodian. In those instances where a market value is
not provided by the qualified custodian, we use a 3rd party valuation, which may be provided by the
underlying investment, 3rd party administrators or independent auditors. If and to the extent Canal Capital
determines the value has changed, valuation will be adjusted moving forward. Such adjustments could result
in a client paying more or less in fees, depending on the circumstances.
You may terminate the portfolio management agreement upon 10 days' written notice to our firm. You will
incur a pro rata charge for services rendered prior to the termination of the portfolio management agreement,
which means you will incur advisory fees only in proportion to the number of days in the quarter for which you
are a client. If you have pre-paid advisory fees that we have not yet earned, you will receive a prorated refund
of those fees.
Financial Planning Services
We charge a fixed fee for financial planning services. Our fixed fees generally range from $1,500 -
$15,000. The fees are negotiable depending upon the complexity and scope of the plan, your financial situation,
and your objectives. An estimate of the total time/cost will be determined at the start of the advisory
relationship. In limited circumstances, the cost/time could potentially exceed the initial estimate. In such
cases, we will notify you and request that you approve the additional fee. Financial planning fees are due upon
completion of the contracted services.
At our discretion, we may offset our financial planning fees to the extent you implement our financial planning
recommendations through our Portfolio Management Service.
You may terminate the financial planning agreement by providing written notice to our firm. You will incur a pro
rata charge for services rendered prior to the termination of the agreement.
Management Services to Pooled Investment Vehicles
To qualify for an investment in a private fund an investor to the private fund must be a qualified investor,
either as an accredited investor or qualified purchaser as applicable to the corresponding private fund offering
documents. For a full description of the applicable fees, including performance- based fees, and expenses
charged to the respective private fund, investors should review the associated offering documents.
Canal Capital Management, LLC serves as the Investment Manager or Investment Advisor to the Funds.
Typically, the Investment Manager or Investment Advisor is responsible for the management, operation and
control of the investment activities of the Funds, to the extent provided in the Partnership Agreement and
Management Agreement. The Investment Manager's primary functions will be to identify, analyze and select
potential Portfolio Investments.
Canal Capital Management, LLC charges a management fee or administration fee in accordance with the terms
of each Fund. You should refer to the offering documents for a complete description of the fees and other
relevant information associated with investing in the Funds. Generally, the management fees and administration
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