Item 5 – Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into one or more
written agreements with the Advisor.
A. Fees for Advisory Services
Investment Management Services
Investment advisory fees are paid quarterly, in advance of each calendar quarter, pursuant to the terms of the
investment advisory agreement. Investment advisory fees are based on the market value of assets under
management at the end of the prior quarter. Investment advisory fees range from 0.50% to 1.50% annually based on
several factors, including: the scope and complexity of the services to be provided; the level of assets to be managed;
and the overall relationship with the Advisor. Relationships with multiple objectives, specific reporting requirements,
portfolio restrictions and other complexities may be charged a higher fee.
The investment advisory fee in the first quarter of service is prorated from the inception date of the account[s] to the
end of the first quarter. Fees may be negotiable at the sole discretion of the Advisor. The Client’s fees will take into
consideration the aggregate assets under management with the Advisor. Certain clients may be offered a tiered fee
schedule within the range above. All securities held in accounts managed by HKI will be independently valued by the
Custodian. The Advisor will conduct periodic reviews of the Custodian’s valuation to ensure accurate billing.
The Advisor’s fee is exclusive of, and in addition to any applicable securities transaction and custody fees, and other
related costs and expenses described in Item 5.C below, which may be incurred by the Client. However, the Advisor
shall not receive any portion of these commissions, fees, and costs.
Use of Independent Managers
As noted in Item 4, the Advisor will implement all or a portion of a Client’s investment portfolio utilizing one or more
Independent Managers. To eliminate any conflict of interest, the Advisor does not earn any compensation from an
Independent Manager. The Advisor will only earn its investment advisory fee as described above. Independent
Managers typically do not offer any fee discounts but may have a breakpoint schedule which will reduce the fee
with an increased level of assets placed under management with an Independent Manager. The terms of such fee
arrangements are included in the Independent Manager’s disclosure brochure and applicable contract[s] with the
Independent Manager. The total blended fee, including the Advisor’s fee and the Independent Manager’s fee, will
not exceed 2.00% annually.
Hunter Keith Industries, Inc.
681 Lake Street East, Suite 262, Wayzata, MN 55391
Phone: (612) 204-0405
Financial Planning Services
HKI offers financial planning for a fixed engagement fee of $2,500. Fees may be negotiable based on the nature and
complexity of the services to be provided and the overall relationship with the Advisor. An estimate for total costs will
be provided to the Client prior to engaging for these services.
Consulting Services
The Advisor provides non-advisory consulting services for a negotiated fee, based on the nature of the consulting
services to be provided. Services are provided at an hourly rate ranging from $150 to $450 per hour or a fixed
engagement fee. An estimate for total costs will be provided to the Client prior to engaging for these services.
B. Fee Billing
Investment Management Services
Investment advisory fees are calculated by the Advisor or its delegate and deducted from the Client’s account[s] at the
Custodian. The Advisor shall send an invoice to the Custodian indicating the amount of the fees to be deducted from
the Client’s account[s] at the respective quarter. The amount due is calculated by applying the quarterly rate (annual
rate divided by 4) to the total assets under management with HKI at the end of the prior quarter. Clients will be
provided with a statement, at least quarterly, from the Custodian reflecting deduction of the investment advisory fee.
Clients are urged to also review the statement provided by the Custodian, as the Custodian does not perform a
verification of the Advisor’s fees. Clients provide written authorization permitting advisory fees to be deducted by HKI
to be paid directly from their account[s] held by the Custodian as part of the investment advisory agreement and
separate account forms provided by the Custodian.
Use of Independent Managers
For Client accounts implemented through an Independent Manager, the Client’s overall fees may include HKI’s
investment advisory fee (as noted above) plus investment management fees and/or platform fees charged by the
Independent Manager[s], as applicable. In certain instances, the Independent Manager or the Advisor may assume
responsibility for calculating the Client’s fees and deduct all fees from the Client’s account[s].
Financial Planning Services
Financial planning fees may be invoiced up to fifty percent (50%) of the expected total fee upon execution of the
financial planning agreement. The balance shall be invoiced upon completion of the agreed upon deliverable[s].
Longer duration planning engagements (greater than six (6) months for completion) may be billed in advance of each
calendar quarter. Services will a duration of six months or more will be billed quarterly.
Consulting Services
Consulting fees may be invoiced up to fifty percent (50%) of the expected total fee upon execution of the consulting
services agreement. The balance shall be invoiced upon completion of the agreed upon deliverable[s]. Ongoing
consulting services are billed quarterly in advance.
C. Other Fees and Expenses
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