Item 5 Fees and Compensation
Edge’s standard annual fee schedule for clients utilizing our Comprehensive Wealth
Management services and for non-institutional clients with Blue Current Global Dividend
Equity or Blue Current U.S. Dividend Equity separately managed account is generally:
1.00% on all assets under $5 Million
.70% on all assets more than $5M but less than $10M
.65% on all assets more than $10M but less than $20M
.55% on all assets more than $20M but less than $50M
.45% on all assets more than $50M but less than $100M
.40% on all assets over $100M but less than $250M
.20% on all assets over $250M
Edge’s standard annual fee schedule for clients utilizing the Ultra-Short Fixed Income
Strategy or other fixed income services is generally:
.20% on all assets under $25M
.15% on all assets more than $25M but less than $50M
.10% on all assets more than $50M but less than $75M
.08% on all assets more than $75M but less than $100M
.05% on all assets over $100M
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For our institutional clients who are seeking Outsourced Chief Investment Officer services only,
Edge management fees are typically negotiated based on the needs of the institution. The
minimum annual fee is $30,000.
All of Edge’s fee schedules are “asset-based” and as such, the management fee is based upon a
percentage of the client’s assets under management, including cash and cash equivalents and
accrued interest and dividends. The asset valuation methodology for certain strategies, including
managed options overlay portfolios, may be calculated based on the notional value or exposure
described in more detail below. Margin or other borrowing balances are not included in the
market value on which fees are calculated. Asset-based management fees are typically payable
quarterly in arrears, using the average month end balance in client accounts managed by Edge
during the quarter, and based on the most recently available pricing at the time of billing.
Occasionally, at the request of a client, Edge may be paid by the client in advance. For
arrangements where the client pays the management fee to Edge in advance but chooses to
terminate their relationship prior to the completion of the quarter, the prepaid fee will be prorated,
and the client will be refunded any unearned portion of the fee. Edge’s management fees will be
automatically deducted from the client’s account unless otherwise agreed by the client and Edge.
Edge may recommend an Options Strategy to clients. The asset valuation methodology for these
option strategies differs from that of the Firm’s general policy, and such valuation will be provided
by the third party manager. With respect to the assets held in any options strategy, the annual fee
for each of the Firm and the third party manager will be calculated based upon the requisite
client’s notional exposure (value of all underlying assets of the security at the current price) or
adjusted notional exposure to such strategy.
Upon written agreement between Edge and a client, fees for financial planning and/or family
office services can also be calculated based upon the client’s assets under management, as
specified in the investment advisory agreement, or billed as a fixed fee. At the request of the
client, financial planning and/or family office services fees can be billed either together with or
separately from the client’s investment management fee.
Any deviation from Edge’s normal compensation arrangement will be documented in the client’s
investment advisory agreement or limited partnership subscription document or a letter signed
by both Edge and the client. Any deviation from our stated fee schedules will be at the sole
discretion of Edge and, as a result, fees can and do vary. Investment advisory fees are typically
discounted or waived for Edge associate (or related) investment advisory accounts.
Clients investing in a private investment fund Edge advises pay a single fee to Edge on those
assets, through their investment in the fund. Investors in Edge Discovery, LLC who are qualified
clients can elect to invest in a share class which pays Edge performance-based fees. The fees
Edge receives for serving as an investment adviser to private funds are separate and apart from
the fees charged by unaffiliated sub-advisers and the fees and expenses charged by the
underlying funds.
Edge also receives consulting fees for providing investment knowledge or resources regarding
services that fall outside our typical investment process such as suitability, risk assessment, and
portfolio management review. These fees would generally be custom in nature and based on
the type and extent of the services being provided.
If Edge invests client assets in mutual funds, ETFs, and/or external managers of separately
managed accounts, the client will pay the fees and expenses of the mutual fund and/or ETF,
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as set forth in the prospectus or offering document, or the fees charged by external managers,
as set forth in the Form ADV Part 2A Brochure of the external manager. Accordingly, clients
should review both the fees charged by the product sponsor and the fees charged by Edge to
understand the total fees they will pay.
Clients have the option to purchase investment products that Edge recommends through other
brokers or agents that are not affiliated with us. In such cases, the client would not receive any fee
reductions negotiated by Edge or the services of Edge which are designed, among other things, to
assist the client in determining which products or services are most appropriate to the client’s
financial condition and objectives. In addition to fees paid for investing in mutual funds, ETFs, or
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