Item 5 – Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into a written
advisory agreement with the Advisor.
A. Fees for Advisory Services
Investment Management Services
Investment or advisory fees are generally paid quarterly, in advance of each calendar quarter, pursuant to the terms
of the investment advisory agreement. Investment advisory fees range up to 1.00% annually and are based on the
market value of assets under management at the end of the prior quarter. Certain Clients may be offered a fixed fee
schedule instead of a tiered schedule for all or some of the Client’s accounts.
The investment advisory fee in the first quarter of service is prorated from the inception date of the account[s] to the
end of the first quarter. Fees may be negotiable at the sole discretion of the Advisor. The Client’s fees will take into
consideration the aggregate assets under management with the Advisor across all accounts, unless otherwise
agreed in writing. All securities held in accounts managed by DIG will be independently valued by the Custodian.
DIG will not have the authority or responsibility to value portfolio securities.
Clients may make additions to and withdrawals from their account[s] at any time, subject to DIG’s right to terminate
an account. Additions may be in the form of cash or securities, and DIG reserves the right to decline or accept
particular securities into a Client’s account[s]. Clients may withdraw account assets on notice to DIG, subject to the
usual and customary securities settlement procedures. However, DIG designs its portfolios as long-term
investments, and the withdrawal of assets may impair the achievement of a Client’s investment objectives. DIG may
consult with its Clients about the options and ramifications of transferring securities. However, Clients are advised
that when transferred securities are liquidated, they may be subject to transaction fees, fees assessed at the mutual
fund level (i.e. contingent deferred sales charge) and/or tax ramifications.
B. Fee Billing
Investment Management Services
Investment advisory fees are calculated by the Advisor and deducted from the Client’s account[s] at the Custodian.
The Advisor shall send an invoice to the Custodian indicating the amount of the fees to be deducted from the Client’s
account[s] in advance of each quarter. The amount due is calculated by applying the quarterly rate (annual rate
divided by 4) to the market value of assets under management as of the end of the prior quarter. Clients will be
provided with a statement, generally quarterly, from the Custodian reflecting the deduction of the investment
advisory fee. Clients provide written authorization permitting advisory fees to be deducted by DIG to be paid directly
from their account[s] held by the Custodian as part of the investment advisory agreement and separate account
forms provided by the Custodian.
Investment advisory fees are calculated by the Relying Adviser and invoiced directly to the investors of the private
fund in which they are invested.
C. Other Fees and Expenses
Clients may incur certain fees or charges imposed by third parties in connection with investments made on behalf
of the Client’s account[s], including but not limited to: securities transaction fees, custody fees, wire fees, and
Independent Manager fees.
In addition, all fees paid to DIG for investment management services are separate and distinct from the expenses
charged by mutual funds, private funds, SPVs, and ETFs to their shareholders or limited partners, if applicable.
These fees and expenses are described in each fund’s prospectus. These fees and expenses will generally be
used to pay management fees for the funds, other fund expenses, account administration (e.g., custody,
brokerage and account reporting), and a possible distribution fee. A Client may be able to invest in these products
directly, without the services of DIG but would not receive the services provided by DIG which are designed,
among other things, to assist the Client in determining which products or services are most appropriate for each
Blue Investment Management, LLC
2340 Collins Avenue, Suite 604, Miami Beach, FL 33139
Phone: (305) 433-4250
Client’s financial situation and objectives. Accordingly, the Client should review both the fees charged by the
fund[s] and the fees charged by DIG to fully understand the total fees to be paid. Please refer to Item 12 –
Brokerage Practices for additional information. Additionally, as noted above, the Advisor will select share classes
that do not have trading costs when possible. These will in most cases be institutional share classes but in some
cases may be share classes with higher internal expense ratios than institutional share classes. Please refer to