Item 5: Fees and Compensation
The amount and manner in which fees are assessed by the Firm depends on the type of
advisory service Bridgeway is performing. The specific fees charged by Bridgeway are set
forth in the Advisory Agreement and are described below.
A. Fee Schedule
Portfolio Management Fees
Total Assets Under Management Annual Fees
All Assets Up to 2.00%
Bridgeway uses the value of the Client’s account as of the last business day of the billing
period (after taking into account deposits and withdrawals greater than $50,000 at the
time of transfer) for purposes of determining the market value of the assets upon which
the advisory fee is based.
These fees are generally negotiable and the final fee schedule will be memorialized in the
client’s advisory agreement. Clients may terminate the agreement without penalty for a
full refund of Bridgeway's fees within five (5) business days of signing the Investment
Advisory Contract. Thereafter, clients may terminate the Investment Advisory Contract
with 30 days' written notice.
Selection of Other Advisers Fees
Bridgeway receives its standard fee on top of any fee paid to a third-party adviser. This
relationship will be memorialized in each contract between Bridgeway and each third-
party adviser. The fees will not exceed any limit imposed by any regulatory agency.
Financial Planning Fees
Fixed Fees
The negotiated fixed rate for creating client financial plans is between $500 and $5,000.
Clients may terminate the agreement without penalty, for full refund of Bridgeway ’s fees,
within five (5) business days of signing a Financial Planning Agreement. Thereafter,
clients may terminate the Financial Planning Agreement generally upon written notice.
Platform Fee
Bridgeway typically charges clients a 15 basis point platform fee which is disclosed in the
Client Agreement.
B. Payment of Fees
Payment of Advisory Fees
Asset-based portfolio management fees are withdrawn directly from the client's accounts with
client's written authorization on a quarterly basis. Fees are paid in advance, or in arrears, based
on the Client agreement. In the event that assets valued at great than $50,000 (valued at the time
of transfer) transfer into or out of the account during the quarter, the quarterly portion of the
annual Advisory Fee will be pro-rated and adjusted accordingly.
C. Client Responsibility For Third Party Fees
Payment of Selection of Other Advisers Fees
The timing, frequency, and method of paying fees for selection of third-party managers
will depend on the specific third-party adviser selected.
Payment of Financial Planning Fees
Financial planning fees are paid via check and wire.
Fixed financial planning fees are paid in advance or in arrears upon completion.
Clients are responsible for the payment of all third-party fees (i.e. custodian fees,
brokerage fees, mutual fund fees, transaction fees, etc.). Those fees are separate and
distinct from the fees and expenses charged by Bridgeway. Please see Item 12 of this
brochure regarding broker-dealer/custodian.
You may pay custodial fees, charges imposed directly by a mutual fund, index fund, or exchange
traded fund which shall be disclosed in the fund’s prospectus (i.e., fund management fees and
other fund expenses), mark-ups and mark-downs, spreads paid to market makers, wire transfer
fees and other fees and taxes on brokerage accounts and securities transactions. These fees are
not included within fee you are charged by our firm. Schwab has eliminated commissions for
online trades of equities, ETFs and options (subject to $0.65 per contract fee). This means that, in
most cases, when we buy and sell these types of securities, we will not have to pay any
commissions to Schwab.
Some clients may have assets managed by a third-party platform, such as Adhesion. The
managers on Adhesion charge their own fee, and Bridgeway may receive a portion of that fee or
charge an add on fee in addition to the third-party manager.
D. Prepayment of Fees
Bridgeway may collect its fees in advance or in arrears. Partial months will be bill pro-
rata. Fees for the Firm’s services are not deducted from the client’s assets by the Firm. Fees
are paid by the Client or the Client’s custodian following receipt of an invoice from the
Firm. The Firm believes that its fees charged to its clients are competitive with those
charged generally by other investment advisers for comparable services. However, some
investment advisers may provide comparable services for lower or different fee
structures.
E. Outside Compensation For the Sale of Securities to Clients
Gilbert Hamilton Dunham, Jr. is an insurance agent. Brian L Reichberg is an insurance
agent. Mr. Dunham and Mr. Reichberg may receive compensation for the sale of
investment products to Bridgeway clients.
Receipt of Outside Compensation represents a Conflict of Interest
As noted above, certain supervised persons may accept compensation for the sale of
investment products, including asset-based sales charges or service fees from the sale of
mutual funds to Bridgeway's clients. This presents a conflict of interest and gives the
supervised person an incentive to recommend products based on the compensation
received rather than on the client’s needs. When recommending the sale of investment
products for which the supervised persons receive compensation, Bridgeway will
document the conflict of interest in the client file and inform the client of the conflict of
interest.
Clients always have the option to purchase Bridgeway-recommended products through
other brokers or agents that are not affiliated with Bridgeway. Commissions are not
Bridgeway ’s primary source of compensation for advisory services. Advisory fees that are
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