Item 5: Fees and Compensation
Method of Compensation and Fee Schedule and Client Payment of Fees
Asset Management Fees
Pursuant to an investment advisory contract signed by each client, the client will pay the Advisor a
quarterly management fee, payable in arrears, and calculated daily as an annualized percentage
multiplied by the net liquidation value of the client’s account. The fee is based on the net liquidation
value of the client’s account on each trading day during the period covered by the fee. The annual
fee will range from 0.50% to 2.00%.
These fees are negotiated by the Advisor, at the sole discretion of the Advisor. The fee can be
negotiated based on anticipated future earning capacity, anticipated future additional assets, dollar
amount of assets to be managed, related accounts, account composition, negotiations with client,
etc. Asset management fees will be automatically deducted from the client account on a quarterly
basis by the qualified custodian. The client will give written authorization permitting the firm to be
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paid directly from their account held by the custodian. The custodian will send a quarterly statement
to the client.
NPT Neutron Fund I, LP
The fees, expenses, and withdrawal terms applicable to each Limited Partner are set forth in detail
in the respective Limited Partner’s Partnership Agreement. A brief summary of fees and expenses is
provided below.
As compensation for its services in managing the Partnership’s operations, the General Partner will
receive a management fee (the “Management Fee”) and incentive fee (the “Incentive Fee”). The
Management Fee is paid in advance as of the first day of each fiscal quarter. The Management Fee
may be reduced or waived for any Partner in the General Partner’s sole discretion. Each Limited
Partner’s capital account will be compiled at least quarterly in accordance with the Partnership
Agreement and the U.S. Internal Revenue Code (and the regulations promulgated thereunder). For
purposes of calculating the Partnership’s assets (and thus each Partner’s capital account), the
Partnership's assets will be valued at the end of each Accounting Period by the Administrator of and
under the overall supervision of the General Partner in accordance with the terms of the Partnership
Agreement. Additions to and withdrawals from the capital account of a Limited Partner at times
other than the last day of a fiscal quarter will result in a pro-rated charge or refund. In addition to the
Management Fee, the General Partner may receive an Incentive Fee based on the Partnership’s
performance, as described in the Partnership Agreement and offering documents.
The Partnership will be responsible for paying its own accounting, audit, legal, administrative, and
offering expenses. To the extent the General Partner advances any of these expenses, the
Partnership will reimburse the General Partner therefor.
The Partnership will pay any extraordinary expenses (including any indemnification obligations) the
General Partner may incur on its behalf.
Additional Client Fees Charged
At no time will the Advisor accept or maintain custody of a client’s funds or securities except for
authorized fee deduction. Client is responsible for all custodial, securities and brokerage execution
fees charged by the custodian and executing broker-dealer. The Advisor’s fee is separate and
distinct from the custodian and execution fees. See Item 12 Brokerage Practices, for further
information of brokerage and transaction costs.
Prepayment of Client Fees
The Advisor’s management fee for investment advisory services is payable in arrears. However, the
Advisor’s management fee for managing the services of the Partnership as outlined in Item 4B is
payable in advance. Upon termination, any fees paid in advance will be prorated to the date of
termination and any excess will be refunded to the investor.
External Compensation for the Sale of Securities to Clients
Not applicable to the Advisor or its supervised persons.
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Other Compensation
Certain investment adviser representatives (“IARs”) of NinePointTwo Capital are dually registered
with an unaffiliated SEC Registered Investment Adviser, PFC Capital Group, Inc. (“PFC”), and may
earn compensation in their roles as IARs of PFC.
The Advisor may pay cash compensation to an unaffiliated third-party marketer in connection with
investor introductions to NPT Neutron Fund I, LP. See Item 14 for additional information.