We are compensated based on what funds you ask us to manage, and not based on sales commissions. Our goal is to give good service and good advice, and not to churn your account. We believe our fee structure brings the client and advisor together in the pursuit of successful long-term results.
For ongoing review, reporting and consultation, fees are as follows:
For portfolios valued at more than $500,000 at quarter-end:
Up to $1,000,000 0.85% per year
$1,00,000-$2,000.000 0.8% per year
Assets over $2,000,000 0.6% per year
For portfolios valued at $500,000 or less at quarter-end:
Minimum quarterly fee is assessed for $2125. This minimum fee may be reduced or waived at the discretion of advisor. No other fees are negotiable.
While there is no minimum account size, the minimum fee should be very carefully considered for investors with accounts receiving advice on amounts less than $850,000. For those accounts, fee may exceed 1% of account value. For accounts valued less than $425,000, fee will exceed 2% of account value, a level that is higher than is normally charged in the industry. The careful consideration is necessary because other investment advisors may provide the same or similar services at lower rates.
The Fine Print
Fee schedule is justified by consideration of competitive forces, customer demands and firm capacity. Minimum fee serves two purposes: to cover the management costs associated with servicing each client regardless of size, and to help protect existing clients from the possibly damaging impact of unmanageable growth in client numbers that may be associated with a lower minimum fee.
Fees are invoiced in arrears, and are payable quarterly within 30 days of billing. Fees are paid by client to advisor. Fees may be automatically deducted from client accounts or paid by the client using any unrestricted client account with check-writing. In opening or closing quarters as a managed account, the fee is prorated by time and based on balance at end of quarter for new accounts, or balance on date of closing. Client will be reimbursed for any prepaid fees on a pro rata basis within 30 days of written termination of agreement. Further terms and conditions are specified by advance agreement between the firm and the client.
In addition to the fee paid to the investment advisor, investment company shares, such as mutual funds, pay their own investment advisory fee and costs. As a result, a dual layer of fees will be paid by client. For example, a mutual fund typically takes an internal fee from its fund to cover its costs of portfolio management and other business costs; that is one layer. Only one fee schedule applies for SPC, as described above; that is a second layer.
Incidental custodial fees such as account or trade fees are the responsibility of the client.
Seattle Portfolio Company LLC is a registered investment adviser in the State of Washington. Seattle Portfolio Company LLC accepts out of state clients if we have fewer than six clients who are residents of that state (the “national de minimis standard” exemption). State investment adviser registration statutes generally obligate advisers to register in every state in which the adviser obtains more than a de minimis number of clients.
The adviser may not transact business in states where it is not appropriately registered or exempt from registration. Effecting transactions in securities or the rendering personalized investment advice for compensation will not be made without registration or exemption.