Bright Portfolios LLC

Item 5 – Fees and Compensation
Model Management Services
Our model management fees are based on a percentage of the assets under management in the
model portfolios and vary by strategy, as follows:
Diversified Equity and Diversified Fixed Income models: 0.15% – 0.30% annually. These fees
are negotiable on a case-by-case basis, and the final fee schedule is outlined in the agreement
with each Advisor.

Focused Equity and Fixed Income Ladder separately managed accounts (SMAs): 0.35% – 0.50%
annually. These fees are negotiable on a case-by-case basis, and the final fee schedule is outlined
in the agreement with each Advisor.
Our fees are billed on a schedule that coincides with each Advisor’s billing cycle. Fees may be
charged quarterly in advance or quarterly in arrears depending on the arrangement with the
Advisor.
Conflict of Interest – ETFs in Model Portfolios: Certain Bright Portfolios model strategies,
including the Diversified Equity and Diversified Fixed Income models, may include one or more
ETFs for which Bright Portfolios serves as subadvisor (BRIF and BRIB). Bright Portfolios
receives subadvisory fees from these ETFs as disclosed in each ETF’s prospectus. This creates a
conflict of interest because Bright Portfolios has a financial incentive to include its own ETFs in
its model portfolios. We do not provide advisory fee discounts or offsets to Advisors or their
clients to account for the subadvisory fees we receive from these ETFs. We mitigate this conflict
by disclosing it here and by applying the same due diligence standards to our own ETFs as we
apply to any third-party ETF considered for inclusion in our model portfolios.
The other Advisors will withdraw our fee from their client’s accounts. Their clients may remove
this authorization for direct billing of fees at any time by notifying the other Advisor or the
custodian in writing.
Advisors and or their clients may also incur other charges such as, ticket or other trading charges,
wire transfer fees, electronic fund fees, or other fees related to custodian accounts. Additionally,
mutual funds and exchange traded funds charge internal management fees, which are disclosed
in a fund’s prospectus. Such fees are exclusive of and in addition to, our fee. We will not receive
any portion of these fees and costs. For more information about our brokerage practice please see
Item 12.A.
For the investment management of the ETFs, we receive an investment management fee and
administrative fees from the ETFs and/or reimbursement of operating expenses by the ETFs. Our
portion is disclosed in the applicable ETF’s prospectus.

Item 7 – Types of Clients
We offer services to other registered investment advisers and exchange traded funds. We do not
require a minimum account balance.