Item 5 – Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for investment management.
Each Client shall sign one or more agreements that detail the responsibilities of HNWA and the Client. Certain
legacy clients may be engaged for similar services at a lower fee.
A. Fees for Advisory Services
Wealth Management Services
Wealth management fees are charged as financial planning fees and investment management fees as described
below. The Client will first pay a fixed fee for the financial plan to be developed and then pay an ongoing
investment advisory fee for the implementation and continued management of the Client’s account[s] based on the
market value of assets under management. See below for more details on financial planning and investment
management fees.
Investment Management Services
Investment advisory fees are paid quarterly in advance of each calendar quarter, pursuant to the terms of the
investment advisory agreement. Investment advisory fees are based on the market value of assets under
management at the end of the prior calendar quarter. Investment advisory fees range from 1.85% to 0.45% based on
the following schedule:
Assets Under Management Annual Rate
First $500,000 1.85%
Next $500,000 (Up to $1,000,000) 0.90%
Next $3,000,000 (Up to $4,000,000) 0.65%
$4,000,000 and over 0.45%
Investment advisory fees in the first quarter of service are prorated from the inception date of the account to the
end of the first quarter. Fees may be negotiable at the sole discretion of the Advisor. The Client’s fees will take into
consideration the aggregate assets under management with or oversight by the Advisor. Investment management
fees are prorated for deposits and withdrawals of $50,000 or more throughout the quarter and are reflected in the
next quarter’s fee. All securities are independently valued by the designated Custodian. HNWA will conduct
periodic reviews of the Custodian’s valuation to ensure accurate billing.
The Client may make additions or withdrawals from the account[s] at any time, subject to the Advisor’s right to
terminate an account or the overall relationship. Additions may be in cash or securities provided that the Advisor
reserves the right to liquidate any transferred securities or decline to accept particular securities into a Client’s
account[s]. Clients may withdraw account assets on notice to HNWA, subject to the usual and customary securities
settlement procedures. However, the Advisor typically designs its investment portfolios as long-term investments
and the withdrawal of assets may impair the achievement of a Client’s investment objectives. HNWA may consult
the Client about certain implications such transactions. Clients are advised that when such securities are liquidated,
they may be subject to securities transaction fees, short-term redemption fees, and/or tax ramifications. Any assets
deposited into or withdrawn from the Client’s account[s], the Advisor’s fee will be adjusted in the next billing
period to reflect the fee difference. The Advisor, at its sole discretion, will negotiate a fee that differs from the
schedule above for certain account[s] or holdings.
The Advisor’s fee is exclusive of, and in addition to, any applicable securities transaction and custody fees, and
other related costs and expenses described in Item 5.C below, which may be incurred by the Client. However, the
Advisor shall not receive any portion of these commissions, fees, and costs.
Page 7 Henrickson Nauta Wealth Advisors
Use of Independent Managers
As noted in Item 4, the Advisor may implement all or a portion of a Client’s investment portfolio utilizing one or
more Independent Managers. To eliminate any conflict of interest, the Advisor does not earn any compensation
from an Independent Manager. The Advisor will only earn its wealth management fee as described above.
Independent Managers typically do not offer any fee discounts but may have a breakpoint schedule which will
reduce the fee with an increased level of assets placed under management with an Independent Manager. The
Advisor will allocate a portion of the advisory fee collected to the Independent Manager pursuant to the terms of
the executed agreement between the Advisor and the Independent Manager. If the Client is required to authorize
and enter into an investment advisory agreement with an Independent Manager then the terms of such fee
arrangements are included in the Independent Manager’s disclosure brochure and applicable contract[s] with the
Independent Manager. The total blended fee, including the Advisor’s fee and the Independent Manager’s fee, will
not exceed 2.50% annually.
Private Fund Management Services
The Advisor will not receive additional fees for its management of the Fund. Investors should refer to the Fund’s
Offering Document for more detailed information on fees and compensation.
Financial Planning and Consulting Services
HNWA offers financial planning or consulting services on a fixed fee basis ranging from $500 to $25,000, which
may be negotiable depending on the nature and complexity of each Client’s circumstances. An estimate for total
cost will be determined prior to establishing the advisory relationship.
In addition, HNWA offers financial planning or consulting services at an hourly rate ranging from $100 to $300 per
hour, which may be negotiable depending on the nature and complexity of each Client’s circumstances. An
estimate for total hours will be determined prior to establishing the advisory relationship.
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