Item 5. Fees and Compensation
bluepoint offers its services on a fee basis, meaning that clients pay an annual fee based upon a percentage
of the assets being managed by the Firm or, in the alternative, a fixed project-based fee.
Investment Advisory Fees
bluepoint’s annual advisory fee generally ranges from 20 to 100 basis points (0.20% – 1.00%) for most
client accounts, depending upon the scope of an engagement and the size of a client’s portfolio. For certain
accounts comprised of more nuanced asset classes, the Firm may charge a higher effective rate, as
specified in the Agreement. These fees are prorated and charged quarterly in advance, as derived from
the value of the assets under management on the last day of the previous quarter.
For the initial term of an engagement, the fee is calculated on a pro rata basis. In the event the Agreement
is terminated, the fee for the final billing period is prorated through the effective date of the termination and
the unearned portion is refunded to the client, as appropriate. If assets are deposited into or withdrawn
from an account after the inception of a billing period, the fee payable with respect to such assets is adjusted
to reflect the interim change in portfolio value. In the event the Firm utilizes margin in a client account, the
advisory fee is calculated on the gross account value, which excludes any levered positions acquired on
margin.
bluepoint, in its sole discretion, may negotiate to charge a lesser fee based upon certain criteria, such as
anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to be
managed, related accounts, account composition, pre-existing client relationship, account retention and pro
bono activities.
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Disclosure Brochure
Institutional Consulting Fees
bluepoint charges an individually negotiated fixed fee to provide institutional clients with project-based
consulting services. These fees are largely determined by the scope and duration of the agreed upon
services, as well as the complexity of a particular engagement.
Additional Fees and Expenses
In addition to the fee paid to bluepoint, clients may also incur certain charges imposed by other third parties,
such as broker-dealers, custodians, trust companies, banks and other financial institutions (collectively
“Financial Institutions”). These additional charges may include securities brokerage commissions,
transaction fees, custodial fees, fees charged by the Independent Managers, charges imposed directly by
a mutual fund or ETF in a client’s account, as disclosed in the fund’s prospectus (e.g., fund management
fees and other fund expenses), deferred sales charges, odd-lot differentials, transfer taxes, wire transfer
and electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions.
Fee Debit
The Firm’s Agreement and the separate agreement with any Financial Institutions generally authorize
bluepoint and/or the Independent Managers to debit its clients’ accounts for the amount of the management
fee and to directly remit that fee to bluepoint or the Independent Managers. Any Financial Institutions
recommended by bluepoint have agreed to send statements to clients not less than quarterly indicating all
amounts disbursed from the account, including the amount paid directly to bluepoint. Alternatively, clients
may elect to have bluepoint send them an invoice for direct payment.
Account Additions and Withdrawals
Clients may make additions to and withdrawals from their account at any time, subject to bluepoint’s right
to terminate an account. Additions may be in cash or securities provided that the Firm reserves the right
to liquidate any transferred securities or decline to accept particular securities into a client’s account.
Clients may withdraw account assets on notice to bluepoint, subject to the usual and customary securities
settlement procedures. However, bluepoint designs its portfolios as long-term investments and the
withdrawal of assets may impair the achievement of a client’s investment objectives. bluepoint may consult
with its clients about the options and implications of transferring securities. 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.