FAQs

1. What are the fees for your services? Our income is generated through a management fee that ranges from 1.25% to 2.5%, depending on the asset values in the account. In addition to the management fee the account will be charged transaction commissions paid to brokers upon the purchase or sale of an equity. . However, the commission rates charged by brokers are some of the lowest in the industry. Our account managers do not derive any "split" commission or remuneration for any trade that is executed. This policy ensures that excessive trading or "churning" is avoided in compliance with National Association of Securities Dealers (NASD) rules and regulations.
2. Why choose Powis Capital Management, LLC for investment help? Many investors today are turning away from the traditional "stockbroker" as they consider how to invest their money. Today, there are certainly many investment choices to choose from. The use of a professional money manager like our firm is becoming increasingly popular with investors. The reason is this:
3. Both the client and the money manager are trying to achieve the same thing. That is to grow net worth while assuming a reasonable amount of market risk. Both share the same investment objective and the money manager's compensation is completely "decoupled" from investment transactions. Hence the risk of a conflict of interest is completely avoided.
4. Unlike the stockbroker who many times has investment banking relationships that affect investment choices, our money managers are completely free to select whatever securities best meet the investment objectives of the client.
5. Over the long run the combination of lower fees & transaction costs results in an overall return that surpasses the major indexes.
6. Who holds possession over my assets and what are the levels of securities protection? Powis Capital Management, LLC will provide the day-to-day management of your account. Securities will be held by our custodian firm, Scottrade Advisor Services. You will have direct access to the account. Our authority as an investment advisor relates strictly to the trading and management of securities in the account. Possession and/or custody of the assets are strictly yours, not Powis Capital Management, LLC. The Security Investors Protection Corporation ("SIPC") protects your assets up to $100,000 in cash, $400,000 in securities, for a total of $500,000 maximum. This protection does not protect against losses from the rise and fall in the market value of investments.
7. Will there be a penalty if I want to close my account? No. There are no penalties assessed upon termination of an account. When you open an account with us, an Investment Advisor Agreement contract is prepared. This agreement continues in effect until termination by either party. However, if the request to close the account is made prior to the end of a calendar quarter, our management fees will be based on a pro-rated basis.
8. How is Powis Capital Management, LLC compensated? Clients are assessed a management fee in advance of each calendar quarter, that is based on the market value of each program in their account at the end of the previous quarter. For example, an account invested in a program that is valued at $200,000 on December 31st, with a 1% management fee, would be charged $500 (1/4 of 1%) for the first quarter. The account will be charged the next quarter's fee based on the value of the account at the end of the previous quarter. The management fee is deducted directly from your account and prior to debiting the account a fee deduction notice will be sent to you. The fee deduction will appear on your quarterly statement in the month it is deducted.