Item 5 Fees and Compensation
The Bollard Group:
We are a fee-only investment adviser and investment management fees are charged either as a
percentage of assets under management or on an hourly basis unrelated to assets, or a combination
of both, as agreed with the client.
Fees based on a percentage of the asset value plus reimbursable expenses for each account are
charged monthly in arrears based on account balance as of the close of the calendar month. The
fees will be deducted directly from client accounts as authorized by the client agreement, or if not
directly deducted, are paid directly by the client. In the case where investment management
services are provided for a partial month period, the fee will be charged pro-rata based on the
portion of the period the services were performed. Fees based on account values are generally
charged at an annual rate of 0.80% or less as determined by account value.
Fees based on hourly charges for services rendered plus reimbursable expenses are charged in
arrears, and the hourly fees generally range from $90 to $1,200 based on the expertise and
experience of the adviser. Invoices for hourly charges are sent to the client directly for payment.
Reimbursable expenses are charged monthly in arrears and are based on the account’s month-end
assets under management and are currently expected not to exceed 5 basis points (0.05%) per year.
These expenses include the Client’s proportional share of third-party, professional, administrative
and other service costs incurred in managing the account. These administrative and other services
are further detailed in the client agreement.
Fees are negotiable at the option of the Firm. Our minimum annual fee for assets under
management is $75,000. Exceptions to the minimum annual fee may be made at the discretion of
The Bollard Group. We will group certain related client accounts when determining account size
or annual fees. Similar advisory services may be available from other registered or unregistered
advisers for similar or lower fees. We do not charge fees in advance of investment management
services provided.
Other investment-related fees and expenses may be incurred, such as custodian fees and mutual
fund expenses. Clients with publicly traded security positions will incur brokerage and other
transaction costs associated with securities portfolios. In addition, if a client engages a third-party
investment adviser to manage the client’s account(s), the client will pay the fees and expenses set
forth in the client’s agreement with the third-party investment adviser. Refer to Item 12 –
Brokerage Practices for further details. Clients of The Bollard Group frequently invest in
Spinnaker Funds. In such cases, The Bollard Group does not charge any advisory fees on amounts
invested by its clients in the Spinnaker Funds as disclosed below in Item 10.
Fees for services not related to investment advisory service are billed to the client based on hourly
rates and reimbursable expenses. These services include consulting fees related to estate and tax
planning, income tax compliance and preparation, cash flow planning and consolidated reporting
The Bollard Group LLC
and other services of a consultative nature as well as related reimbursable expenses. Invoice
billings for such services are prepared periodically as needed and are sent directly to the client.
Spinnaker Capital:
Where suitable for our clients, we frequently recommend investment opportunities in Spinnaker
Funds where our related entity, Spinnaker Capital or its affiliates, manages the investments.
Spinnaker Capital and its affiliates charge the Spinnaker Funds for administrative management
services based on hourly rates and reimbursable expenses, as provided under a separate agreement.
In connection with these services, Spinnaker Capital and its affiliates will also earn a performance-
based fee for a limited number of funds. This performance-based fee is typically known as a
“carried interest” and is normally paid as a percentage of profit (generally up to 20%) determined
after the capital contributions and any preferred return have been paid to investors. Any such
performance-based fees that are charged by the affiliate are explained in the Spinnaker Funds’
organizational documents.
In addition to the foregoing, each Spinnaker Fund will pay costs, expenses and liabilities associated
with its organization and operations. As most of the Spinnaker Funds are “fund of funds” that
invest in underlying funds, the Spinnaker Funds will pay their pro rata shares of an underlying
fund’s management and performance fees payable to the underlying adviser, as well as the
underlying fund’s organizational and operational costs.
The Bollard Group LLC