Item 5: Fees and Compensation
How the Firm is Paid for its Services - The KLRIA Managed Account Program charges a single
asset-based fee (“Program Fee”). Depending on the specific program you select, the Program Fee
covers our asset and investment style allocation recommendations, manager research, performance
reports, periodic rebalancing of accounts, document processing, information systems and other
administrative services. The Program Fee also covers the platform administration and investment
advisory services provided by the Program Sponsor, and the services of any selected third-party
investment managers, who are compensated from the portion of the Program Fee paid to Program
Sponsor. You will incur transaction costs, fees, commissions, and other charges and expenses in
addition to the fees paid to us. Any portion of a KLRIA Managed Account Program account
maintained in cash is subject to the Program Fee, unless excluded at the request of the client. For
services provided under the KLRIA Managed Account Program options, you will pay the Program
Fee on a quarterly basis, calculated by applying the annual fee schedule for the type of account you
maintain. As indicated below, lower asset-based fees will apply as the level of assets maintained in
a KLRIA Managed Account Program account increase to certain account balance tiers. (See
Managed Account Fee Billing section for more details).
KLR Investment Advisers, LLC
951 North Main Street Providence, RI 02904
Phone: 401-274-2001
Fax: 401-831-4018
www.klrwealth.com
The advisory fee debits in advance, on a quarterly basis, based on the investment advisory account
balance on the last day of the previous quarter. A prorated advisory fee applies to investment
advisory accounts established during a quarter, based on the opening account balance at inception.
The advisory fee debits directly against the Client investment advisory account, or another Client
designated account held by Pershing. Pershing is authorized to debit the Client account and credit
the KLRIA r account for all advisory fees due and payable.
Tax Preparation Services
Clients with a minimum of $2,000,000 in assets under management are eligible for individual
income tax return preparation inclusive in their advisory fee, subject to a review of your tax return
by our team.
How the Fees Are Calculated
The quarterly fee is determined by multiplying the market value of the account at the end of the
previous calendar quarter by one-fourth of the annual Program Fee rate. Breakpoints are applied
on the incremental amount of assets in each account over each threshold.
KLRIA Managed Account Program Fee Schedule
Account Balance *Annual Program Fee Program Fee Portion Payable
to KLRIA
$0 - $2.5M *1.13% 1.00%
$2.5M – $5M *0.93% 0.80%
$5M - $7.5M *0.81% 0.70%
$7.5M & above *0.71% 0.60%
*(0.69% starting @ $10M)
* Represents minimum annual program fee. Additional manager fees may apply.
Managed Account Program Fees Are Negotiable Under Some Circumstances
We are willing to negotiate the rate of the applicable fees and any account minimums for
KLRIA Managed Account Program accounts under some circumstances, such as the type
and size of the client account, the range of services provided to the client, and our total
relationship with Program Sponsor in terms of assets under supervision. Our employees
and employees of our affiliates, in certain circumstances, are entitled to fee discounts by
virtue of their employment.
Managed Account Fee Billing
The Program Fee typically is paid quarterly in advance by applying the applicable fee rate (as
specified in the fee schedule for the applicable KLRIA Managed Account Program account type or
otherwise applicable to the client’s account balances) to the fair market value of the assets in the
account (including interest paid or accrued) as of the last business day of the preceding calendar
quarter. The fair market value of the assets in the account will be as determined by the Program
Sponsor. The following procedures will apply:
• The initial Program Fee will be calculated and debited on or around the 10th day of the
month following the initial investment. The initial Program Fee for any partial calendar
quarter will be pro-rated based on the number of calendar days in the partial quarter.
• After the initial payment period, the Program Fee will be calculated at the beginning of
each calendar quarter based on the value of Program Assets on the last business day of the
prior calendar quarter.
KLR Investment Advisers, LLC
951 North Main Street Providence, RI 02904
Phone: 401-274-2001
Fax: 401-831-4018
www.klrwealth.com
• If an account is terminated and all assets of the account are withdrawn prior to the end of
a quarter, a pro rata portion of the Program Fee will be reimbursed to the client.
• The Program Sponsor will calculate the applicable Program Fee and provide the amount
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