Overview
Bright Futures Wealth Management, LLC (hereinafter “BFWM”) offers the following services to
advisory clients:
A. Description of Services
BFWM participates in and sponsors a wrap fee program, which allows BFWM to manage
client accounts for a single fee that includes both portfolio management services and
brokerage costs. The fee schedule is set forth below:
Total Assets Under Management Maximum Annual Fees
$0 - $10,000 2.75%
$10,001 - $250,000 2.75%
$250,001 - $500,000 2.50%
$500,001 - $1,000,000 2.00%
$1,000,001 - $2,500,000 1.75%
$2,500,001 - $5,000,000 1.50%
$5,000,001 - $100,000,000 1.25%
These fees are negotiable depending upon the needs of the client and complexity of the
situation and the final fee schedule is attached as Exhibit II of the client contract. BFWM
uses the last day of previous billing period for purposes of determining the market value
of the assets upon which the advisory fee is based.
Advisory fees are withdrawn directly from the client’s accounts with client’s written
authorization or may be invoiced to the client and paid by check, cash, credit card, or wire
and clients may select the method in which they are billed. Fees may be paid in arrears or
quarterly in advance. For accounts charged in advance, refunds are given on a prorated
basis, based on the number of days remaining in the billing period on the effective date of
termination. The fee refunded will be the balance of the fees collected in advance minus
the daily rate* times the number of days in the
billing period up to and including the
effective date of termination. (*The daily rate is calculated by dividing the annual fee by
365).
Clients may terminate the contract without penalty, for full refund, within five business
days of signing the contract for payments in advance. Thereafter, clients may terminate
the contract with thirty days’ written notice.
B. Contribution Cost Factors
The program may cost the client more or less than purchasing such services separately.
There are several factors that bear upon the relative cost of the program, including the
trading activity in the client’s account, the adviser’s ability to aggregate trades, and the
cost of the services if provided separately (which in turn depends on the prices and
specific services offered by different providers).
C. Additional Fees
Clients who participate in the wrap fee program will not have to pay for transaction or
trading fees. However, clients are still responsible for all other account fees, such as
annual IRA fees to the custodian and mutual fund fees.
D. Compensation of Client Participation
Representatives of BFWM may receive any additional compensation beyond advisory
fees for the participation of client’s in the wrap fee program. Compensation received may
be more than what would have been received if client paid separately for investment
advice, brokerage, and other services. Therefore, BFWM may have a financial incentive
to recommend the wrap fee program to clients.