FREQUENTLY ASKED QUESTIONS

Why hire Bright Investments?

  • Most often for investment related reasons
  • Stability and safety of a value manager
  • For how we manage risk
  • Clients appreciate partnership relationship
    • Institutions value our presentations before boards and employees
    • Private clients appreciate our detailed, performance based reporting

Who are Bright Investments types of clients?

  • Pension and profit sharing plans
  • Endowments, trusts, estates, or charitable organizations
  • Foundations or Universities
  • Private clients or family offices
  • Corporations or business entities other than those listed above

 

What is the minimum investment to open an account?

The minimum amount of assets that a client must place under management to open a separately managed account is $1,000,000.  This is subject to negotiation at Bright Investments’ sole discretion.  All clients are required to execute an agreement for services in order to establish a client arrangement with Bright Investments.

 

What does it cost to have a separately managed account?

Assets Under Management                                          Management Fee

First $1 million                                                                         1.25%

Next $9 million                                                                        1.00%

Next $40 million                                                                      0.95%

Thereafter                                                                                  0.75%

The investment advisory fees will be deducted from your account and paid directly to our firm by the qualified custodian(s) with your authorization.  The billing statement will detail the formula used to calculate the fee, the assets under management and the time period covered.

Brokerage expenses and/or transaction ticket fees charged by the qualified custodian are billed directly to you by the qualified custodian. Bright Investments does not receive any portion of such commissions or fees from you or the qualified custodian.   In addition, you may incur certain charges imposed by third parties other than Bright Investments in connection with investments made through your account including, but not limited to, mutual fund sales loads, 12(b)-1 fees and surrender charges, surrender charges, IRA and qualified retirement plan fees, and charges imposed by the qualified custodian(s) of your account. Management fees charged by Bright Investments are separate and distinct from the fees and expenses charged by investment company securities that may be recommended to you. A description of these fees and expenses are available in each investment company security’s prospectus. We do not receive any portion of the fees or expenses charged by investment companies.

Bright Investments and our supervised persons do not accept or receive compensation based on the sale of securities or other investment products such as asset-based sales charges or service fees from the sale of mutual funds.

 

Do we charge any commissions?

No.  We are a fee-only investment adviser.

Who is the custodian for my account?

Pershing, LLC is our preferred custodian for your account. The account remains in the client’s name.

 

What is fiduciary duty?

Our fiduciary duty is to always put client needs ahead of our own and has been the heart of Bright Investments’ culture since inception.

Why Auburn, Alabama?

Auburn was our first “value pick”.  We found that it provided an underappreciated combination of access to information, transportation, attractive cost structure, and talent that would allow us to provide a unique service to our clients.

In the information age, our belief is that the large majority of information is available regardless of geography. At the same time, Auburn’s unique culture and academic orientation offers an opportunity to develop an independent perspective, removed physically from the groupthink of Wall Street and other money center cities. And located only 90 minutes from the many direct flights of Atlanta airport, we have a top-tier ability to travel nationwide in search of good ideas.

We also identified Auburn as a city with not simply a low cost structure, but a high-value cost structure. Class A office facilities and quality professional vendors allow us to provide the highest level of services to clients at a fraction of the cost of other cities. Business-friendly taxation and regulation allow us to focus on satisfying our clients, rather than jumping unnecessary hoops.

Lastly, we believe that Auburn is an attractive destination for educated professionals and for families. With high-quality public schools, an academically-oriented university community, a pleasant climate, and numerous cultural activities, we believe that Auburn is a fit for many individuals accustomed to life in money center locations.

Why incur the high cost of in-house IT security and compliance?

First and foremost, we believe in-house IT security and compliance are musts.  We believe part of the fiduciary duty of a top investment advisor is to protect client information and lead with compliance, not to outsource it.  As threats related to cyber security grow and the need to be ever vigilant against fraud remains, we view outsourcing solutions, while less expensive, as less effective in preventing problems.  Therefore, we have chosen for our clients to invest in best-in-class technology and world-class data encryption.  We proactively monitor with redundant platforms, in case of disaster.  Our compliance officer has 25+ years of experience.  We have $2M in professional liability insurance.  And we utilize a tested surveillance program.

Are cash balances insured by the Federal Deposit Insurance Corporation (FDIC)?

Yes, cash balances are FDIC insured. Cash is swept into an eligible money market fund.

 

Who are Bright Investments’ auditors?

Machen McChesney, LLP serves as Bright Investments’ independent accountants.

How will I track the status of my account?

Clients’ may log in to their account via our ACCOUNT page at any time.

How do I access my funds?

Clients’ may contact Bright Investments for distributions at any time.

How do I open an account?

Contact us via phone (334-321-2321) or email ([email protected]).

 

What other services does Bright Investments provide?

Our entire focus is asset management.