Each Investment Management Account is assigned a primary account manager, responsible for the client's portfolio. Account reviews include mandate objectives, assets, income, investment horizon, and risk preferences. The result of our review is a written statement of investment objectives that becomes part of the client’s advisory contract. Subsequent to our initial review, accounts are reviewed on a continuing basis. Review meetings are held as desired by clients.
We believe that the appropriate method of measuring performance is to measure the return relative to the level of risk assumed in producing that return. Simply measuring a raw return can produce a false or incomplete picture. A record of high returns in some markets with steep declines in others may be more indicative of a willingness to take risk than of superior investment skills. Therefore, we believe the appropriate method is to determine any additional return over that which might have been expected for a given amount of risk assumed.
Although clients may choose their own eligible custodian to hold assets, Saturna has contracts in place with Maybank Group and RHB Group to help reduce fees. Regulations require that trades with any one broker must be limited to 50% of the total dealings in value in any one financial year. Saturna endeavors to keep portfolio turnover low, but such regulatory requirements may induce the need to use different brokers for trading.
All Investment Management Account clients complete the Saturna Sdn Bhd Investment Management Agreement, which details the terms of our relationship.
Clients have their choice of two fee structures:
Annual Asset-based Fee
1.00% on the first RM 1,000,000, plus 0.85% on the next RM 2,000,000, plus 0.70% on the next RM 7,000,000, plus 0.55% on all amounts over RM 10 million.
Asset-based fees are billed after the end of each quarter, based on value of the assets at the end of the quarter and for services rendered during the quarter.
Subject to a minimum annual fee of RM 2,000 (a minimum quarterly fee of RM 500).
Annual Appreciation Fee
20% of the capital appreciation from Initial Date to Final Date.
Initial Date is January 1st of each year, or the first day of the month after the account was opened if later.
Final Date is December 31st each year, or the date the account was closed if earlier.
If there is no capital appreciation, the annual fee is zero. The Appreciation Fee is billed after year-end. There are no partial periods or quarterly charges.
Capital appreciation is the market value on the Final Date less the adjusted initial market value on the Initial Date. The adjustments to the Initial Date market value are:
- increased to the highest year-end market value since inception, after deducting all withdrawals since inception;
- increased by any account additions pro-rata for the days left in the year
(for example, RM 1,000,000 added on April 1 would adjust market value on the Initial Date upward by RM 750,000);
- decreased by any account withdrawals pro-rata for the days left in the year
(for example, RM 1,000,000 withdrawn on April 1 would adjust Initial market value downward by RM 750,000).
Note: Investment Management Accounts are currently not available to open online. Please contact us.