Hill Island Financial LLC

Item 5 – Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into one or
more written agreements with the Advisor.

A. Fees for Advisory Services
Investment Management Services
Investment advisory fees are paid monthly, in advance of each calendar month, 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 month. Investment advisory fees are based on the following tiered
fee schedule.
                                                 Hill Island Financial LLC
                                38 Commerce Avenue SW, Suite 310, Grand Rapids, MI 49503
                                    Phone: (616) 977-2639 | https://hillislandfinancial.com

                              Assets Under Management ($)                     Annual Rate (%)
                            Up to $500,000                                        1.65%
                            $500,001 to $1,000,000                                1.50%
                            $1,000,001 to $3,000,000                              1.25%
                            $3,000,001 to $5,000,000                              1.00%
                            $5,000,001 to $10,000,000                             0.85%
                            $10,000,001 to $15,000,000                            0.75%
                            $15,000,001 to $25,000,000                            0.65%
                            $25,000,001 to $50,000,000                            0.60%
                            $50,000,001 to $75,000,000                            0.55%
                            Over $75,000,000                                    Negotiable

The investment advisory fee in the first month of service is prorated from the inception date of the account[s] to
the end of the first month. Fees may be negotiable at the sole discretion of the Advisor. The Advisor typically
offers a tiered, incremental fee schedule (as detailed above) where the rate is reduced as assets under
management increase. In certain circumstances, the Advisor may charge a fixed annual rate or fixed fee for its
services. The Client’s fees will take into consideration the aggregate assets under management with the Advisor
across all accounts, unless otherwise agreed in writing. All securities held in accounts managed by Hill Island
Financial will be independently valued by the Custodian. Hill Island Financial will conduct periodic reviews of the
Custodian’s valuations to ensure accurate billing.

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.

Clients may make additions to and withdrawals from their account[s] at any time, subject to Hill Island Financial’
right to terminate an account. Additions may be in cash or securities provided that Hill Island Financial 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 Hill Island Financial, subject to the usual and customary
securities settlement procedures. However, Hill Island Financial designs its portfolios as long-term investments,
and the withdrawal of assets may impair the achievement of a Client’s investment objectives. Hill Island Financial
may consult with its Clients about the options and ramifications of transferring securities. However, Clients are
advised that when transferred securities are liquidated, they may be subject to transaction fees, fees assessed at
the mutual fund level (i.e. contingent deferred sales charge) and/or tax ramifications.

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 investment advisory 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 Manage 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 2.00% annually.

Financial Planning Services
Hill Island Financial offers financial planning services either as a one-time project or as an on-going engagement
for a fixed fee. Project-based fees range from $1,500 to $15,000. On-going fees range from $375 to $1,000 per
month. Fees may be negotiable based on the nature and complexity of the services to be provided and the
                                                  Hill Island Financial LLC
                                 38 Commerce Avenue SW, Suite 310, Grand Rapids, MI 49503
                                     Phone: (616) 977-2639 | https://hillislandfinancial.com

overall relationship with the Advisor. An estimate for total costs will be negotiated with the Client prior to
engaging for these services.
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Item 7 – Types of Clients

Hill Island Financial offers advisory services to individuals, high net worth individuals, families, trusts, estates,
businesses, retirement plans, and charitable organizations. Hill Island Financial generally requires a minimum
account size of $2,000,000 for Investment Management services to effectively implement its investment process.
This minimum account size may be waived or reduced at the Advisor’s discretion.