Item 5 – Fees and Compensation
All fees are subject to negotiation. The specific manner in which fees are charged by
NorthPointe is established in a client’s written agreement with NorthPointe. Except as
described below, fees are generally paid quarterly or monthly in arrears, as negotiated and
described in each investment advisory agreement. Clients are generally billed directly for fees.
However, some Clients may direct us to concurrently bill their custodian as well. In case of the
latter, clients will always receive a copy of the invoice as well.
Management fees shall generally be prorated for each capital contribution and withdrawal
made during the applicable calendar quarter. Accounts initiated or terminated during a
calendar quarter will be charged a prorated fee. Upon termination of any account, any earned,
unpaid fees will be due and payable.
NorthPointe’s fees do not include 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, banks, trust departments, third party investment advisors 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 not included in and are in addition to NorthPointe’s
fee. Item 12 further describes the factors that NorthPointe considers in selecting or
recommending broker-dealers for client transactions, for determining the reasonableness of
their commissions, and the application of soft dollars used for research.
Contracts between NorthPointe and non-investment company clients who contract for fee-
plus-commission services (“Standard Fee Clients") may be terminated upon written notice as
negotiated and stated in the advisory agreement. The fees for advisory supervisory services to
its non-investment company Standard Fee accounts are described below. Fees and minimum
portfolio size can vary from the schedules below and may be negotiated based upon factors
that include, but are not limited to, the Client’s country of residence, amount and/or
composition of assets involved, range and extent of services provided and whether the client
currently has assets managed by NorthPointe or is an employee of NorthPointe. Moreover, fees
and other account requirements may vary as a result of prior policies and the date the account
opened. Fees may also vary depending on the strategy, account type and services. Other
pricing relationships, typically involving multiple accounts, services or products, also may be
offered to certain clients.
Value Equity Platform
Small Cap Value Equity 1.00%
on the first $10 million 0.80%
on the next $40 million 0.60%
on the next $50 million
Negotiable on value over $100 million
Minimum account size: $5 million
Value Equity Platform (continued)
Micro Cap Value
1.25% on the first $100 million
Negotiable on value over $100 million
Minimum account size: $5 million
Opportunistic Equity Platform
Large Cap Value Equity 0.60% Energy Select
on the first $10 million 0.45% 1.00% flat fee
on the next $40 million 0.35% Minimum account size: $5 million
on the next $50 million
Negotiable on value over $100 million
Minimum account size: $5 million