Heritage Grove Wealth Management LLC

Item 5: Fees and Compensation
Our fee for portfolio management services is based on a percentage of assets under
management (AUM):
• 0.95% on the first $1,000,000
• 0.75% on the next $2,000,000 (i.e., $1M to $3M)
• 0.50% on assets above $3,000,000

Fees are calculated based on the average daily balance of managed assets and billed
quarterly in arrears. Fees are typically deducted directly from client accounts held at our
qualified custodian, Charles Schwab.

We do not accept performance-based fees or charge commissions. Additional costs, such as
custodian fees, mutual fund or ETF expenses, and transaction charges, may apply.

Fee Calculation Example

The following example illustrates the annual advisory fee for a $3,500,000 account based on
the tiered fee structure:

   1. First $1,000,000: 0.95% × $1,000,000 = $9,500

   2. Next $2,000,000 ($1M to $3M): 0.75% × $2,000,000 = $15,000

   3. Remaining $500,000 ($3M to $3.5M): 0.50% × $500,000 = $2,500

    4. Total Annual Fee: $9,500 + $15,000 + $2,500 = $27,000

The blended rate (effective fee rate) is calculated as:
$27,000 ÷ $3,500,000 = 0.7714%

Fees are billed quarterly in arrears, so the quarterly fee for this account (assuming a stable
balance) would be $27,000 ÷ 4 = $6,750. Actual fees may vary based on the average daily
balance during the billing period.

Item 7: Types of Clients
We provide advisory services to:
• High-net-worth individuals
• Trusts and estates
• Foundations
• Select institutions