Item 5 - Fees and Compensation
Asset Management Fees
As compensation for its investment advisory services, the Firm is normally entitled to an annualized portfolio
management fee, which is usually calculated and paid as a percentage of assets under management. In some
instances, the Firm earns additional fees based on investment performance results (also referred to as an
incentive fee). For additional information, please refer to the “Performance-Based Fees” section (Item 6).
Management Fees for Separate Account Clients.
To the extent that Heitman has established asset-based investment advisory fees for the strategies it offers, the
schedule below is the fee schedule Heitman generally employs. However, fees for certain accounts may fall
outside of the stated range. Heitman may amend its fee schedule in accordance with the terms of its advisory
contracts.
Investment Strategy Annual Fee (USD)
0.65% on the first $25 million
0.55% on $25-$100 million
Global Real Estate Securities Strategy
0.50% on $100-$250 million
0.45% over $250 million
0.80% on the first $25 million
0.70% on $25-$100 million
Global Real Estate Securities Concentrated Strategy
0.60% on $100-250 million
0.55% over $250 million
Global Prime Strategy 0.30%
Advisory fees may vary. Asset management fees are negotiated on a client-by-client basis. Client requirements,
and other facts and circumstances are considered in determining the fee schedule. These include, but are not
limited to, the inception date of the account, the complexity of the client mandate, amount of assets to be placed
under management, anticipated future additional assets, related clients, portfolio style and composition, types of
securities held, portfolio customization and the nature of reporting requested, among other factors.
The asset-based fees that the Firm receives from model portfolio providers, sponsors or third parties to whom
the Firm licenses its strategies are separately negotiated with each party.
The terms and conditions, including fees for services, are mutually agreed to with clients prior to entering into
the IMA and are paid quarterly in arrears. The Firm’s customary practice is to provide quarterly invoices to the
client, or other party, as directed by the client. Such fees are typically paid to the Firm through the custodian or
other client designee. Upon termination of any IMA, any earned but unbilled fees will be invoiced.
The Firm may group certain related client accounts for the purpose of determining the annualized fee. Clients
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Part 2A of Form ADV: Firm Brochure
should note that similar advisory services might be available from other registered (or unregistered) investment
advisers for lower fees.
Placement Fee Income. Placement fee income consists of fees from Heitman Affiliates for services the Firm
provides as a placement agent with respect to marketing limited partnerships and similar vehicles sponsored by
the Heitman Affiliates. Income is recognized as the performance of obligations are satisfied under reasonable,
estimated terms.
On an annual basis, HLLC reassesses the appropriateness of the estimates, and if necessary, will adjust the
service period to appropriately reflect the length of performance obligations.
General Information
Additional Fees and Expenses. In addition to the Firm’s advisory fees, clients are also responsible for the fees
and expenses charged by custodians and imposed by broker dealers and/or local exchanges, including, but not
limited to, any transaction charges imposed by a broker dealer with which an independent investment manager
effects transactions for clients’ portfolios. These charges, fees and brokerage commissions are exclusive of, and
in addition to, the Firm’s advisory fees. The Firm shall not receive any portion of these commissions, fees, or
charges, except for research or brokerage products and services as permitted under the safe harbor of Section
28(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). For more information about
brokerage commissions and commission sharing, please refer to the “Brokerage Practices” section (Item 12) of
this Form ADV for additional information.
ERISA Accounts. The Employee Retirement Income and Securities Act (“ERISA”) and regulations under the
Internal Revenue Code of 1986 (the “Internal Revenue Code”), respectively, deem the Firm to be a fiduciary to
its clients that are employee benefit plans. As such, the Firm is subject to specific duties and obligations under
ERISA and the Internal Revenue Code that include, among other things, restrictions concerning certain forms of
compensation. To avoid engaging in prohibited transactions, the Firm only charges fees for investment advice
regarding products for which the Firm and/or its “related persons” do not receive any commissions or 12b-1 fees,
or conversely, investment advice regarding products for which the Firm and/or its “related persons” receive
commissions or 12b-1 fees, however, only when such fees are used to offset the Firm’s advisory fees.