How Do Your Financial Professionals Make Money?
You can find additional information about our firm’s investment management services on the SEC’s website at www.adviserinfo.sec.gov by searching CRD# 111257. You may also contact our firm at (440) 720-1100 and speak to any of our investment professionals or staff.
Investment Management Fees: You will pay an ongoing asset-based fee at the beginning of each reporting quarter for our services based on the value of your account(s). The fee never exceeds 1% per year and the more assets there are in your account(s), the higher your fee will be. Therefore, we have an incentive to encourage you to increase the assets in your account or to not withdraw cash. Although your fee amount increases, the percentage we charge you decreases below 1% as your assets grow above $500,000. The investment management fee may be deducted from your account or you can pay it separately. Our only source of revenue is the investment management fees paid by our clients.
Other fees and costs: Because we do not hold your assets, you will also be charged fees by the broker-dealers and/or custodians. Our fee is separate and distinct from these charges, which are fairly small in comparison. Depending on where your assets are custodied, these charges vary and we will explain them to you.
You will pay fees and costs whether you make money or lose money on your investments and whether or not we trade during the period. Fees and costs will reduce the amount of money you make on investments. Please make sure you understand what fees and costs you are paying.
Please see our annual Form ADV Part2A Brochure for complete details about our services and fees.
CONVERSATION STARTER: Help me understand the costs I will incur. If I give you $500,000 to manage, how much will go to fees and costs, and how much will be invested for me? How do your fees affect my performance over time? Are you higher cost than your competitors?
Fees and Costs
Form CRS Customer Relationship Summary
March 10, 2021
Conflicts of Interest and Standard of Care
Copyright © North Point Portfolio Managers All rights reserved.
Neither the firm nor any of its financial professionals have any legal or disciplinary disclosures.
100 Park Avenue, Suite 200 Orange Village, OH 44122 Phone: (440) 720-1100 Fax: (440) 720-1101
Our financial professionals receive a monthly salary and receive bonuses based on a percentage of the revenue they bring to the firm. A portion of their pay may reflect additional roles they perform which are not directly related to client revenue. Neither the firm nor its professionals earn any compensation from hidden sales commissions or reimbursements from broker-dealers or custodians.
As an investment advisor, we are required to be a fiduciary, which means we must always act in your best interest and not put our interests ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. For example, the more assets in your account, the more you will pay in fees, and the firm may therefore have an incentive to encourage you to withdraw less money or increase the assets in your account. We may prefer to work with certain broker-dealers because they provide access to conferences and consulting that benefit us rather than our clients.
We are required to monitor your account(s), investment strategy and investments on an ongoing basis.
CONVERSATION STARTER: How might your conflicts of interest affect me, and how will you address them?
North Point Portfolio Managers Corporation is registered with the Securities and Exchange Commission (SEC) as an investment advisor, and we provide investment management services. We are not a broker and we do not physically hold your asssets. Investment management and brokerage services and fees differ, and it is important for investors to understand the differences. Free and simple tools are available to research firms and financial professionals at www.Investor.gov/CRS, which also provides educational materials about investment advisors, broker-dealers, and investing.
NORTH ❖ POINT
We provide fee-based, separate account investment management directly to individuals, high net worth individuals, trusts, non-profit organizations, qualified retirement plans and businesses. We are retained to buy and sell assets in client accounts. We discuss your investment goals, explain the expected performance and volatility of stock and bond investing, our methodology in choosing investments, determine what portion of your investments should be in stocks and continuously monitor your account. We do not create products such as mutual funds or exchange traded funds nor do we utilize other firms’ products. We have a relatively narrow investment style compared to other firms.
Investment Authority: We buy and sell individual stocks and bonds in your account without your prior approval, within the guidelines of what we have discussed with you. This is called “discretionary authority” and you sign our Investment Management Agreement giving us this authority. This agreement remains in place until you or we terminate the relationship.
Reporting: We contact you quarterly and either meet in person or send your reports by letter to review the changes made to your account(s) during that period, the performance, the listing of your holdings and our view of what is happening in markets generally. You also receive a monthly statement directly from the firm that holds your assets listing each investment, its value and that month’s transaction activity.
CONVERSATION STARTER: Given my financial situation, how would you invest my assets? How do you choose what to buy or sell? Should I use mutual funds? Why should I work with an investment advisor and not a broker or a mutual fund company? What is your experience and qualifications? May I see your Investment Management Agreement? Could other firms offer a wider range of investment choices?