Fees and Compensation — Form ADV Part 2A (5/6/2024)
[Brochure]
Item 5: Fees and Compensation
A. Fee Schedule
Asset-Based Fees for Portfolio Management
Total Assets Under Management Annual Fee
All assets 2.00%
These fees are generally negotiable and the final negotiated fee schedule is attached as Exhibit
of the Investment Advisory Contract. Clients may terminate the agreement without penalty for
a full refund of HIML's fees within five business days of signing the Investment Advisory
Contract. Thereafter, clients may terminate the Investment Advisory Contract generally with
30 days' written notice.
HIML uses an average of the daily balance in the client’s account throughout the billing period,
after taking into account deposits and withdrawals, for purposes of determining the market
value of the assets upon which the advisory fee is based.
Performance-Based Fees for Portfolio Management
Qualified clients will pay an annual fee of 2.00% of assets under management along with a
20.00% performance fee based on capital appreciation. If the client's portfolio rises in value,
the client will pay 20.00% on that increase in value, but if the portfolio drops in value, the
client will not incur a new performance fee until the portfolio reaches the last highest value,
adjusted for withdrawals and deposits, which is generally known as a “high water mark.”
The highwater mark will be the highest value of the client’s account on the last day of any
previous year, after accounting for the client’s deposits or withdrawals for each billing period.
These fees are generally negotiable and the final negotiated fee schedule is attached as Exhibit
II of the Investment Advisory Contract. This service may be canceled with 30 days’ notice.
Clients must pay the prorated performance-based fees for the billing period in which they
terminate the Investment Advisory Contract up to and including the day of termination.
B. Payment of Fees
Payment of Asset-Based Portfolio Management Fees
Asset-based portfolio management fees are withdrawn directly from the client's accounts with
client's written authorization on a quarterly basis. Fees are paid in arrears and in some cases
in advance.
Payment of Performance-Based Portfolio Management Fees
Performance-based portfolio management fees are withdrawn directly from the client's
accounts with client's written authorization on an annual basis. Fees are paid in arrears and
in some cases in advance.
C. Client Responsibility For Third Party Fees
Clients are responsible for the payment of all third-party fees (i.e., custodian fees, brokerage
fees, mutual fund fees, transaction fees, etc.). Those fees are separate and distinct from the
fees and expenses charged by HIML. Please see Item 12 of this brochure regarding broker-
dealer/custodian.
D. Prepayment of Fees
HIML generally collects its fees in arrears. In some cases, it may collect fees in advance in
accordance with Investment Advisory Contract between HIML and the client.
E. Outside Compensation For the Sale of Securities to Clients
Neither HIML nor its supervised persons accept any compensation for the sale of securities or
other investment products, including asset-based sales charges or service fees from the sale of
mutual funds.
Account Minimums and Types of Clients — Form ADV Part 2A (5/6/2024)
[Brochure]
Item 7: Types of Clients
HIML generally provides advisory services to the following types of clients:
❖ Individuals
❖ Pooled Investment Vehicles
Minimum Account Size
There is no account minimum for any of HIML’s services, but minimum investment amount ranging
from $50,000 to $1,000,000 is required for different funds.