Item 5: Fees and Compensation
A. FOURPOINTS Asset Management, Inc. is compensated for investment
management services by fees from our clients. FOURPOINTS Asset
Management’s fees are calculated based on calendar quarter-end assets in the
portfolios and may also be calculated on the average of month-end assets
during the quarter. We bill in arrears. If a client terminates the investment
management agreement during the quarter, fees are pro-rated, based on the
number of days the client’s portfolio was under active management during the
quarter. Fees are also pro-rated in the same manner for a new client whose
assets we begin to manage during a quarter. Our fees range from 0.75% of
assets to 1.50% of assets and are calculated quarterly.
B. Investment management fees are deducted from our private clients’ assets
after each calendar quarter. For private clients whose assets are custodied
with Charles Schwab, invoices are sent with quarterly reports and fees are
deducted one week after the reports are electronically delivered or mailed to
clients. Investment management fees are deducted from The Philippe Fund
Euro Global Leaders, LLC, and The Philippe Fund U.S. Equities, LLC by our
custodian bank, upon receipt of the signed quarterly fee authorization from
FOURPOINTS Asset Management, Inc. For private clients whose assets are
custodied with Interactive Brokers, investment management fees are
automatically deducted by the custodian on the first business day after the
close of the most recent quarter-end.
C. Other fees or expenses:
1. For discretionary and non-discretionary accounts:
FOURPOINTS’ investment management fees are exclusive of brokerage
commissions, transaction fees, and other related costs and expenses,
which shall be incurred by the client. Clients may incur certain charges
imposed by custodians, brokers, third party investment and other third
parties, such as fees charged by managers, custodial fees, 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. Mutual funds and exchange traded funds
also charge internal management fees, which are disclosed in a fund’s
prospectus.
Such charges, fees and commissions are exclusive of and in addition to
FOURPOINTS’ investment management fee, and FOURPOINTS shall not
receive any portion of these commissions, fees, and costs.
Returns available to investors in The Philippe Fund Euro Global Leaders,
LLC and The Philippe Fund U.S. Equities, LLC are net of fees. In
addition to management fees, the fees applicable to our commingled
funds are audit and tax return preparation fees and custody fees.
D. FOURPOINTS Asset Management, Inc. does not require clients to pay any fees
in advance of the inception of active asset management.
E. FOURPOINTS Asset Management, Inc. and its supervised persons do not
accept compensation for the sale of securities or other investment products,
including asset-based sales charges, or service fees from the sale of mutual
funds.