Item 5: Fees and Compensation
ArchPoint is compensated solely by its clients.
We offer investment advisory services for a percentage of assets under management and/or fixed fees.
The range of potential fees will depend on many factors, including, but not limited to, the services to be
provided, the amount of assets to be invested and managed, the amount of communication requested by
the client, and the amount of consulting support related to client-initiated investment opportunities. The
most important determinant of the range of fees to be charged is the scale of the assets to be invested
and monitored. As a general rule, a fee of 1% of the total assets to be managed provides the initial point
of reference for the fees that will be charged. Additions or reductions to this fee will depend on the factors
set forth above. Furthermore, if services such as accounting, generation of financial statements, and
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aggregated performance reporting across vehicles/entities are requested by the client, then the fees
charged to the client will be increased accordingly. The amount of the fee increase for these additional
services will depend on the scale of the transactional activity involved.
All fees paid to us are in addition to any brokerage fees (see Item 12: Brokerage Practices), custody fees,
and fees and expenses clients incur in assets supervised by us, including, but not limited to, separate
accounts managed by other managers, private investment funds, mutual funds and real estate
investments. Any fees and expenses charged to clients by managers, private investment funds or mutual
funds are described in their respective investment management agreements, offering memorandums,
subscription agreements or mutual fund prospectuses. These fees generally include an investment
management fee, performance fee and, in the case of mutual funds, may include distribution fees.
ArchPoint receives no compensation from any third-party manager or brokerage arrangement.
Although some clients pay their fees on a monthly basis, fees charged on a percentage of assets are
generally payable quarterly during the quarter in which services are rendered (within 30 days after the
start of each calendar quarter) based upon the most recent quarter-end fair market value of assets under
management. These fees are invoiced to the client or they may be automatically deducted from a client's
account every quarter or month, if permitted by the client's investment advisory agreement. Advisory
agreements may be terminated by us or a client at any time, although some clients have advisory
agreements requiring prior written notice by a predetermined numbers of days to terminate. Any fees
paid in advance of termination will be prorated to the date of termination and any unearned portion will
be refunded to the client.
With respect to the Funds, no management fee is charged. However, the Funds reimburse ArchPoint for
reasonable expenses borne by ArchPoint in its performance. ArchPoint is not required to pay any expenses
of the Funds and bears its own operating and overhead expenses. The Funds are not responsible for the
overhead expenses of ArchPoint. The Funds bear all of the legal and other out-of-pocket expenses
incurred in connection with the organization of the Funds and the offerings of its interests and reimburse
ArchPoint for any such expenses paid by ArchPoint on behalf of the Funds. The Funds bear all ordinary
administrative and operating expenses, risk management expenses, ordinary and recurring investment
expenses, including custodial costs, brokerage costs, interest charges, consulting fees, compensation of
the Fund’s managers who are not directors, officers, or employees of the ArchPoint or of any “affiliated
person” (other than a registered investment company) of ArchPoint, legal expenses, accounting and
auditing expenses incurred in preparing, printing, and delivering all reports (including such expenses
incurred in connection with any Fund document) and tax information for members and regulatory
authorities, and all filing costs, fees, travel expenses, and any other expenses which are directly related to
the investment of the Funds’ assets. The Funds may pay any extraordinary expenses incurred, including
litigation expenses.