Boon operates under a master/sub account structure with its broker-dealer. Under this relationship, Boon controls a single master account that is divided into multiple sub-accounts. A sub-account is opened for each of Boon’s clients.
The Master/sub account structure has benefits for both Boon and Boon’s clients:
Boon will accept an unexpired government-issued identification evidencing nationality or residence and bearing a photograph or similar safeguard, such as a driver’s license or passport
Boon collects the following information from its clients:
The minimum initial deposit is $50.
Yes. We have built in the functionality to completely sync your existing DriveWealth account with your Boon account.
Given how sensitive the above information is, Boon encrypts client data in accordance with industry standard protocol.
From time to time, Boon may need to communicate and verify client information with the broker-dealer or to ensure accuracy and consistency. We also recognize that Boon clients may have already opened or will open in the future an independent account with one of Boon’s partners. For this reason, Boon has stopgaps in place to ensure all data is consistent across all of the client’s accounts.
Boon will correct execution errors as quickly as possible and payout to clients any erred transactions costs.
Boon primarily communicates with its clients through email. However, Boon also makes itself available via telephone at (908) 328-4261.
If a client changes their account information, their account will go into pending status until it is pre-approved. If the information they change to cannot be verified within 60 days, then we will liquidate their client account and fund them back their deposit once we receive a verified method.
To open an account, download the Boon’s mobile application on the iOS Store or Google Play Store.
Boon will not accept an investment from or on behalf of the following:
No. Boon on-boards clients through the Boon mobile application.
Boon obtains from non-U.S. clients a current passport number or other valid government ID number, and any necessary U.S. tax forms.
Yes. Any U.S. resident that would like to invest with Boon is encouraged to do so.
Boon will pass through to clients the following brokerage fees related to account maintenance and trade execution:
We automatically withdrawal fees from your account on the first Thursday of every month. We keep a small portion of your account balance in cash so we never have to make a transaction to withdraw fees.
At the end of every month, Boon calculates its management fee based on the client’s time-weighted assets under management for that month. In the event clients are fully invested, in order to withdraw its fees without affecting client allocations Boon keeps a small percentage of client deposits in cash for this purpose. Boon does not charge clients a management fee for the deposit it keeps in cash.
Boon clients pay a management fee as a percentage of their account balance. This fee can range from 0.25% to 1.00% depending on their account size and location.
Boon offers its clients an automated investment service. This investment service is based on modern portfolio theory, and makes it possible for Clients to access state-of-the-art portfolio management. We first seek to identify efficient assets, including both ETFs and individual stocks, which would be appropriate investments for our Clients. We then allow our Clients to choose up to ten assets from this curated list for their portfolios. Once the Clients have made their selections, we calculate the Clients’ individual risk tolerances. Last, we suggest to the Clients an investment strategy that combines their asset choices in a way which provides efficient returns for their given tolerance for risk.
Boon uses the following criteria when evaluating which securities to allow clients to invest in:
Boon currently offers clients the option to include the following individual securities in their portfolios:
Boon cannot guarantee any level of performance or that any Client will avoid a loss of the assets in their account. Any investment in securities, especially individual securities, involves the possibility of financial loss that Clients should be prepared to bear.
In order for an ETF to be suitable for a client, it must satisfy the following criteria:
Specific criteria for Boon’s stock offerings include a combination of the following metrics:
At Boon, we have developed a proprietary derivation of the mean-variance optimization (MVO) model that we believe improves on its central limitations. At a high level, Boon’s MVO model uses the expected return and volatility for each asset the client selects, as well as the covariance matrix among the chosen assets, to find the allocation weights that deliver the highest estimated possible return for the Client’s given level of risk.
No. While we recommend certain companies to our clients, it is our belief that to further limit the freedom Boon clients have over their portfolio allocations would do more harm than good.
Yes, when you sign up with Boon you agree to have your dividends reinvested. Dividend reinvestment means that dividends from the client’s funds are used to purchase additional investments in accordance with the client’s target allocation.
Boon takes a more collaborative approach to investment management by enabling our users to include companies of their choice into the optimization model. The process begins by recommending to each client a collection of ETFs to invest in. The client then is presented with baskets of individual securities curated by Boon’s advisory team. These baskets are classified by industry, and include companies representative of U.S. culture that Boon clients can be proud to invest in. Every company included in one of Boon’s baskets has been screened by Boon’s advisory team, and those that have passed Boon’s screening are deemed Boon Certified. The client then may choose to:
Boon has entered into an agreement with ICBCFS to serve as the qualified custodian for Boon Client accounts.
When they sign up with Boon, clients agree to direct brokerage in their accounts with DriveWealth, LLC. Boon does not receive payment for order flow related to these orders.
While DriveWealth will ultimately be responsible for confirmations and statements, Boon will also maintain its own database to house client information.
For more information on DriveWealth, please visit: http://help.drivewealth.com/
Given the client submits the necessary information to satisfy KYC documentation, Boon can accept deposits from all regions and countries except for the following:
Yes. Boon applied for registration with the SEC as an investment advisor and was accepted in February 2016.
Boon will provide its clients updated disclosures annually. As well, Boon will update clients on an ad hoc basis of the change in question is significant.
Boon monitors its account activity to identify patterns of unusual size, volume, pattern or type of transactions, geographic factors such as whether jurisdictions designated as “non-cooperative” are involved, or any “red flags.” Boon reviews transactions, including trading and wire transfers, in the context of other account activity to determine if a transaction lacks financial sense or is suspicious because it is an unusual transaction or strategy for that client.
Boon will submit Suspicious Activity Reports (SARs) for suspicious client activity when opening accounts and when transacting business.
In the years when a non-US citizen is considered an nonresident alient for tax purposes, that person owes tax on investment income according to the following rules:
For a complete description of the rules governing U.S. tax policy as applied to nonresident aliens, see Publication 519, U.S. Tax Guide for Aliens.
Yes. Boon must have power of attorney to trade securities on behalf of the client’s account, as well as withdraw management fees.
Yes. Boon makes all our disclosures available to the public through the following links:
Client Account Agreement: https://www.booninvestments.com/client-agreement
Business Continuity Plan: https://www.booninvestments.com/business-continuity-plan
Electronics Agreement and Disclosure Statement: https://www.booninvestments.com/electronics-agreement-and-disclosures-statement
Form ADV Part 2A Client Brochure: https://www.booninvestments.com/wp-content/uploads/2017/04/Form-ADV-Part-2A-Client-Brochure.pdf
In most cases, Boon’s non-U.S. clients are exempt from the majority of the taxes due on the income earned from their U.S. investments. In the years when a non-US citizen is considered a non-resident alien (NRA) for tax purposes, that person owes tax on investment income according to the following rules. If the NRA’s country of residence has an active tax treaty with the U.S. government, the rules inherent to the treaty supersede the standard rules set forth by the IRS.
If the NRA’s country of residence has an active tax treaty with the U.S. government, the rules inherent to the treaty supersede the standard rules set forth by the IRS. For NRAs, treaties limit or eliminate U.S. taxes on various types investment income, including interest, dividends, royalties, and capital gains. In most cases, these treaties serve to reduce the tax rate on interest and dividend income and thereby diminish the effect of double taxation.
Each treaty must be reviewed independently to determine one’s eligibility for these provisions, as each may contain language that cannot be applied universally. For example, many treaties also limit the number of years an NRA can claim a treaty exemption. For teachers, professors and researchers, the limit is usually two to three years. Treaties may also have requirements above those of the IRS to be eligible for benefits.
For detail on specific tax treaties by country, see United States Income Tax Treaties – A to Z. The IRS has compiled a comprehensive list of each treaty, and in most cases, the technical explanation for the treaty. Please note that tax treaties are updated periodically and amended by protocols, so be sure to check IRS.gov website for the latest information on specific treaties when claiming treaty benefits.
The following links are to the US treaties with China and India:
Your statements and activity history will be available securely at drivewealth.com or through Boon’s mobile application.
Investment advice provided by Boon Investments Inc, an SEC Registered Investment Advisor.
Brokerage services provided to clients of Boon Investments Inc. by DriveWealth, a member of FINRA / SIPC .
Investments are not FDIC Insured; they are not guaranteed by a bank and may lose value.
Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.
Before investing, consider your investment objectives and Boon Investments’ charges and expenses.
Boon charges an annual fee of 0.40% of assets under management to manage client portfolios. These fees are deducted quarterly.
Not an offer, solicitation of an offer, or advice to buy or sell securities in jurisdictions where Boon is not registered.
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