Item 5: Fees and Compensation
INVESTMENT MANAGEMENT SERVICES
In consideration for BluePointe Capital’s advisory and other services, BluePointe Capital and/or certain of
its affiliates generally are entitled to receive management fees and performance allocations with respect to
the Funds. While the fees and compensation applicable to each Fund are described in detail in the applicable
governing documents, side letters and/or fee agreements, an overview of BluePointe Capital’s basic fee
schedule is summarized below with a view toward providing ease of reference. A potential investor should
read and review all governing documents in their entirety before making any investment decisions.
ASSET-BASED FEES
BPCM shall charge an annual fee based upon a percentage of the market value of the assets being managed
by BPCM. BPCM’s annual fee shall be prorated and charged quarterly, in advance, based upon the market
value of the assets on the last day of the previous quarter. The annual fee shall vary depending upon the
market value of the assets under management as follows:
Portfolio Value Annual Fee
Up to $1,000,000 1.5% or minimum fee of $10,000
$1,000,000 to $24,999,999 1.00%
$25,000,000 to $49,999,999 0.85%
$50,000,000 to $74,999,999 0.75%
$75,000,000 to $99,999,999 negotiable
Management is allowed to make exceptions to the fee schedule.
Advisory fees are directly debited from client accounts or paid by check, PayPal, ACH, or wire transfer.
FLAT FEES
Flat fees are negotiated with each client and will be billed quarterly, in advance, at a fixed annual rate
based upon the nature and complexity of the investments and type of services provided. In the event the
client terminates BPCM’s investment advisory services, the balance of BPCM’s unearned fees (if any)
shall be refunded.
ACCOUNT MINIMUMS AND MINIMUM FEES
BPCM does not impose an account minimum for starting or maintaining an Investment Management
account. However, BPCM generally imposes a minimum annual fee of $10,000 for its investment
management services. This minimum fee can impact the analysis as to whether BPCM’s services are
deemed practical by clients, particularly those with portfolios less than $666,666 under BPCM’s
management. BPCM, in its sole discretion, can negotiate to waive the account minimum and/or charge a
different minimum fee or management fee, or no minimum fee or management fee, based upon certain
criteria (i.e., anticipated future earning capacity, anticipated future additional assets, dollar amount of assets
to be managed, related accounts, account composition, pre-existing client, account retention, pro bono
activities).
ADDITIONS & WITHDRAWALS
The client can make additions to and withdrawals from the account at any time, subject to BPCM’s right to
terminate an account. If assets are deposited into an account after the inception of a quarter that exceed
$250,000, the fee payable with respect to such assets will be prorated based on the number of days remaining
in the quarter. Clients may withdraw account assets on notice to BPCM, subject to the usual and customary
securities settlement procedures. For partial withdrawals in excess of $250,000 within a billing period,
BPCM shall credit its unearned fee towards the next quarter’s fee. However, BPCM designs its portfolios
as long-term investments and assets withdrawals may impair the achievement of a client’s investment
objectives.
For the initial quarter of investment management services, the first quarter’s fees shall be calculated on a
pro rata basis. The Agreement between BPCM and the client will continue in effect until terminated by
either party pursuant to the terms of the Agreement. BPCM’s annual fee shall be prorated through the date
of termination and any remaining balance shall be charged or refunded to the client, as appropriate, in a
timely manner. Additions may be in cash or securities provided that BPCM reserves the right to liquidate
any transferred securities or decline to accept particular securities into a client’s account. BPCM may
consult with its clients about the options and ramifications of transferring securities. However, clients are
advised that when transferred securities are liquidated, they are subject to transaction fees, fees assessed at
the mutual fund level (i.e., contingent deferred sales charge) and/or tax ramifications.
INDEPENDENT MANAGERS
As noted in Item 4, BPCM will recommend that certain clients’ portfolios include the Firm’s use
Independent Managers in managing a portion of such clients’ assets. These Independent Managers are either
available to the client directly or through a wrap fee program. The investment management fees charged by
the Independent Manager(s), together with the fees charged by the wrap fee program sponsor and
corresponding designated broker-dealer/ custodian of the client’s assets, as well as BPCM’s investment
advisory fee set forth above.
Certain Independent Manager(s) impose more restrictive account requirements and varying billing practices
than BPCM. In such instances, BPCM shall alter our corresponding account requirements and/or billing
practices to accommodate those of the Independent Manager(s) or wrap fee program sponsor.
Certain Independent Manager(s) pay BPCM for referring the client. Please refer to Item 10 of this Brochure
for more information on this practice and on the conflict this poses.
CONSULTING SERVICES
Consulting fees are negotiated with each client and will be billed at an hourly rate or charged a fixed fee
based upon the nature and complexity of the project. Generally, BPCM requires one-half of the consulting
fee (estimated hourly or fixed) payable upon entering the written agreement. The balance is generally due
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