FEES & COMPENSATION
Portfolio Management
Portfolio management is provided on an asset-based fee arrangement. Management fees are
calculated based on the aggregate market value of your account on the last business day of the
previous calendar quarter multiplied by one-fourth the annual percentage rate (i.e., 1.25% ÷ 4 =
0.3125%).
We retain discretion to negotiate the management fee on a client-by-client basis depending on the size
and complexity of the portfolio managed. In addition, as your total portfolio value exceeds the
following tier levels, either through asset growth or additional deposits, fee breaks occur and the
portfolio management fee is adjusted accordingly.
Our tiered fee schedule is as follows:
Form ADV: Part 2A Knox Capital Advisors, LLC
Disclosure Brochure
We generally require a minimum initial investment of $100,000 to open a managed account; however,
we retain the right to waive or reduce this minimum if we feel circumstances are warranted.
Protocols for Portfolio Management
The following protocols establish how we handle our portfolio management accounts and what you
should expect when it comes to: (i) managing your account; (ii) your bill for investment services; (iii)
deposits and withdrawals; and, (iv) other fees charged to your account(s).
Discretion
We will establish discretionary trading authority on all management accounts to execute securities
transactions at anytime without your prior consent or advice.
At anytime however, you may impose restrictions, in writing, on our discretionary authority (i.e., limit
the types/amounts of particular securities purchased for your account, exclude the ability to purchase
securities with an inverse relationship to the market, limit our use of leverage, etc.)
Billing
Your account will be billed quarterly in advance based on the above fee arrangements. For new
managed accounts opened in mid-quarter, our fee will be based on a pro-rated calculation of your
assets to be managed for remainder of the existing quarter.
Advisory fees will be deducted first from any money market funds or cash balances. If such assets are
insufficient to satisfy payment of such fees, a portion of the account assets will be liquidated to cover
the fees.
Withdrawals
For assets you may withdraw during the quarter, we do not make partial refunds of our quarterly
portfolio management fee. Just as with deposits, withdrawals from your account will require
modifications and adjustments to be made to correct the allocation of assets in your portfolio.
Fee Exclusions
The above fees for all of our management services are exclusive of any charges imposed by the
custodial firm including, but not limited to: (i) any Exchange/SEC fees; (ii) certain transfer taxes; (iii)
service or account charges, including, postage/handling fees, electronic fund and wire transfer fees,
auction fees, debit balances, margin interest, certain odd-lot differentials and mutual fund short-term
redemption fees; and (iv) brokerage and execution costs associated with securities held in your
managed account. There can also be other fees charged to your account that are unaffiliated with our
management services.
In addition, all fees paid to us for portfolio management services are separate from any fees and
expenses charged on mutual fund shares by the investment company or by the investment advisor
managing the mutual fund portfolios. These expenses generally include management fees and various
fund expense, such as: redemption fees, account fees, and purchase fees may occur but are the
exception within managed accounts at institutional custodians. A complete explanation of these
expenses charged by the mutual funds is contained in each mutual fund’s prospectus. You are
encouraged to carefully read the fund prospectus.
Form ADV: Part 2A Knox Capital Advisors, LLC
Disclosure Brochure
Termination of Investment Services
To terminate our investment advisory services, either party (you or us) by written notification to the
other party, may terminate the Investment Advisory Agreement at any time, provided such written
notification is received at least 30 days prior to the date of termination (i.e.; To terminate services on
October 1, a request for termination should be received in our office by September 1.). Such
notification should include the date the termination will go into effect along with any final instructions
on the account (i.e., liquidate the account, finalize all transactions and/or cease all investment
activity).
In the event termination does not fall on the last day of a calendar quarter, you shall be entitled to a
pro-rated refund of the prepaid quarterly management fee based upon the number of days remaining in
the quarter after the termination notice goes into effect. Once the termination of investment advisory
services has been implemented, neither party has any obligation to the other – we no longer earn
management fees or give investment advice and you become responsible for making your own
investment decisions.
Portfolio Monitoring
Under the arrangements with the Portfolio Managers, we are not involved in the day to day
management of your portfolio assets. Our responsibility to the Portfolio Manager(s) will be to ensure
you meet their minimum qualifications. Once your account has been established we will provide all
administrative and clerical duties as may be required to service your account. The Portfolio Manager(s)
may have little or no direct contact with you.
Our responsibility to you will be to continuously evaluate the performance of your portfolio to ensure
the Portfolio Manager adheres to your asset allocation guidelines and will make recommendations to
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