Overview


The Choice SMA Account is a low cost, sophisticated, "in-house" Separately Managed Account (SMA) platform that provides your clients with direct access to some of the world's leading investment managers. A Choice SMA account gives clients direct ownership of the securities, allowing greater flexibility, more control and significant tax advantages over other investment vehicles. This platform is ideal for clients seeking a long-term, customized, goals-driven approach to investment planning.

Client accounts are opened through KSI at National Financial Services (NFS) and Pershing. Choice SMA accounts allow flexibility with respect to setting the wrap fee schedule and in selecting appropriate investment manager(s) to meet the client's objectives. In addition, Choice SMA accounts have the following features:

  • All accounts are managed by professional third party investment managers.
  • All contractual relationships, i.e., custodian, broker-dealer, investment manager, etc., are managed by Kovack Advisors, Inc.
  • All transactions, settlements, income receipts, and reconciliation are automated.
  • Minimum account size typically is $100,000.
  • Clients receive regular quarterly statements from the clearing firm and quarterly performance reports are available to advisors from KAI.
  • Fees are billed quarterly in advance.
  • Do your own research on individual mutual funds, ETF's and Separate Account Managers ("SAM") through Kovack Advisors' CHOICE Advantage Platform ("CAP"). No special training is necessary. Use the following login information below for investment manager research.

  • User ID: research
    Password: kovack1

  • Transactions in Foreign Securities may incur additional clearing firm charges.  Please contact the trading department for specific charges that may apply.

The cost of the Choice SMA program to the Advisor depends on the size of each separate account and the money manager(s) selected.

(Best viewed in landscape)

Account Size KAI Program Fee Clearing Firm Fee* Manager Fee** Total Advisor Cost***

$100,000-$500,000

25bps

15bps

50bps

90bps

$500,001-$1MM

20bps

10bps

50bps

80bps

$1MM +

15bps

5bps

50bps

70bps

*The minimum annual Clearing Firm Fee at Pershing & NFS is $150. In addition to the regular Clearing Fee, NFS has an additional trade cost to the client of $0.75 per transaction.

**The 50bps for the Manager Fee is used as an average. The actual Manager Fee will vary depending on the manager selected.

***The total cost will be determined by the Money Manager Selected. Total Cost is tiered: For example: A $1,000,000 would be charged 90bps on the first $500,000 then 80bps on the subsequent $500,000.


 

 

 

 

 

Copyright ©2017 Kovack Advisors, Inc.,
6451 North Federal Highway, Suite 1201
Fort Lauderdale, Florida 33308
Call us at (954) 670-0617
Email: info@kovackadvisors.com

 

Check the background on this investment firm at the SEC's Investment Adviser Public Disclosure website.