Item 5: Fees and Compensation
UMA Clients. Knuff & Company charges UMA Clients asset-based management fees for its
services. For a UMA Client receiving wealth planning and portfolio management services, the
annual management fee is assessed quarterly in arrears, based on the total market value of the
account according to the following schedule:
1.00% (100 basis points) on the first $5 million
0.75% (75 basis points) on the next $5 million
0.50% (50 basis points) on any amount in excess of $10 million
In the event Knuff & Company provides such services to multiple related UMA Clients that it,
in its sole discretion, classifies as a “Relationship,” the market values of the multiple related
UMA Client accounts are aggregated and prorated to minimize fees for the benefit of the
Relationship.
For a UMA Client receiving only custody administration services, Knuff & Company does not
charge a fee but, in the event providing such services exceeds 0.05% (5 basis points) of the total
market value of the account, it reserves the right to charge a mutually agreed upon (i.e.,
negotiated) annual fee, assessed quarterly in arrears, based on the total market value of the
account.
The Fund. Knuff & Company receives both an asset-based fee (“management fee”) and a
performance-based allocation of profit (“incentive allocation”) from the Fund, in accordance
with the Fund’s partnership agreement and offering memorandum. The management fee is
based upon the total market value of all the Limited Partners’ capital accounts. The
management fee is calculated on a tiered schedule identical to that charged to UMA Clients (as
Knuff & Company LLC Form ADV Part 2A
listed above) using each Limited Partner’s capital account balance as of the end of each calendar
quarter, and it is paid quarterly in arrears to Knuff & Company. Knuff & Company could waive
or reduce the management fee in its sole discretion. The incentive allocation generally equals
10% of the net realized and unrealized appreciation in the Fund’s net asset value (“NAV”) for
the year, but only on the amount by which such appreciation in the Fund’s NAV exceeds certain
performance thresholds, as outlined in the Fund’s partnership agreement and offering
memorandum. If earned, the incentive allocation is generally calculated and allocated as of
December 31 each year, and as of the effective dates of withdrawals as to the Limited Partner
capital account from which the withdrawal is made, and only in proportion to the withdrawal
amount.
Knuff & Company does not charge or assess any brokerage fees/commissions. Clients are
subject to third party fees as described below under “Expenses.”
All fees paid to Knuff & Company will be directly deducted from Clients’ accounts by
instruction to the Custodian or the Fund’s third-party administrator (“Fund Administrator”), as
appropriate (defined in Item 15: Custody).
Expenses
In addition to Knuff & Company’s asset-based management fees and performance-based
incentive allocations, Clients also bear all expenses incurred in connection with an account’s
investment activities. Those expenses reduce Clients’ returns.
UMA Client Expenses. Regarding third-party alternative investments and/or funds, their
managers will charge fees and expenses (which could include performance-based fees) to
investors as disclosed in their respective offering documents, which Clients will bear if any
portion of their assets are invested in such third-party alternative investments or funds.
Similarly, for mutual fund and exchange traded fund (“ETF”) investments, as described in each
fund’s prospectus, Clients are charged some or all of the following: internal management fees,
distribution fees and other expenses. These fees and expenses are in addition to Knuff &
Company’s advisory fees and will reduce Clients’ accounts’ returns.
Fund Expenses. The Fund bears all of its ongoing operating costs, including, but not limited to,
brokerage commissions and investment transaction costs, custodial fees, expenses incurred for
investment due diligence, filing and/or regulatory fees, costs of Fund governance activities,
accounting, audit and other professional fees and expenses, tax preparation fees, legal fees and
all other reasonable expenses related to the management and operation of the Fund and/or the
purchase, sale, or transmittal of Fund assets, as Knuff & Company determines in its sole
discretion and as set out in further detail in the Fund’s offering memorandum. The Fund also
pays its third-party Fund Administrator customary fees based on the nature and extent of
services provided to the Fund. The Fund Administrator is also entitled to reimbursement by the
Fund for reasonable out-of-pocket disbursements and expenses incurred on behalf of the Fund.
Knuff & Company is responsible for certain administrative expenses incurred in connection
with its provision of services to the Fund, such as its own office space, utilities, office
equipment, and similar overhead. Additionally, Knuff & Company could, in its discretion, bear
all or a portion of the Fund’s expenses, either directly or through a waiver of a portion of the
management fee or the incentive allocation to which it would otherwise be entitled. Knuff &
Company has no obligation to do so or, if it does so for any period or in any amount, to continue
doing so.
Please also see “Item 12: Brokerage Practices” in this Brochure regarding costs and expenses.
Knuff & Company LLC Form ADV Part 2A
Neither Knuff & Company nor any of its supervised persons accepts commissions or other
compensation for the sale of securities or other investment products.