Item 5 – Fees and Compensation
In certain circumstances, all fees, account minimums and their applications to family
circumstances may be negotiable.
HWA has contracted with Buckingham Strategic Partners for services
including trade processing, collection of management fees, record maintenance, report
preparation, marketing assistance, and research. HWA has also contracted with
Buckingham Strategic Partners for sub-advisory services with respect to clients’ fixed
income accounts. HWA pays a fee for Buckingham Strategic Partners services based on
management fees paid to HWA on accounts that use Buckingham Strategic Partners. The
fee paid by HWA to Buckingham Strategic Partners consists of a portion of the fee paid by
clients to HWA and varies based on the total client assets participating in Buckingham
Strategic Partners through HWA. These fees are not separately charged to advisory clients.
The specific manner in which fees are charged by HWA is established in a client’s written
agreement with HWA. Investment Management and Employee Benefit Plan clients will be
charged in advance at the beginning of each calendar quarter based upon the value (market
value based on independent third party sources or fair market value in the absence of
market value; client account balances on which HWA calculates fees may vary from account
custodial statements based on independent valuations and other accounting variances,
including mechanisms for including accrued interest in account statements) of the client’s
account at the end of the previous quarter. New accounts are charged a prorated fee for the
remainder of the quarter in which the account is incepted (date of first trade).
For Investment Management and Employee Benefit Plan Services, HWA will request
authority from the client to receive quarterly payments directly from the client's account
held by an independent custodian. Clients may provide written limited authorization to
HWA or its designated service provider, Buckingham Strategic Partners, to withdraw fees
from the account. Clients will receive custodial statements showing the advisory fees
debited from their account(s). Certain third-party administrators will calculate and debit
HWA’s fee and remit such fee to HWA.
A client agreement may be canceled at any time, by either party, for any reason upon
receipt of 30 days written notice. Upon termination of any account, any prepaid, unearned
fees will be promptly refunded.
HWA’s fees are exclusive of brokerage commissions, transaction fees, and other related
costs and expenses which shall be incurred by the client. Clients may incur certain charges
imposed by custodians, brokers, third party investment and other third parties such as fees
charged by managers, custodial fees, odd-lot differentials, transfer taxes, wire transfer and
electronic fund fees, and other fees and taxes on brokerage accounts and securities
transactions. Mutual funds and exchange traded funds also charge internal management
fees, which are disclosed in a fund’s prospectus. These fees will generally include a
management fee and other fund expenses. All fees paid to HWA for investment advisory
services are separate and distinct from the fees and expenses charged by mutual funds and
ETFs to their shareholders.
Such charges, fees and commissions are exclusive of and in addition to HWA’s fee, and HWA
shall not receive any portion of these commissions, fees, and costs.
Advisory Fees
Investment Management Services:
The annual fee for investment management services will be charged as a percentage of
assets under management, according to the schedule below:
Assets under management Annual Fee (%)
Up to $249,999 1.25%
$250,000 - $499,999 1.00%
$500,000 - $999,999 0.90%
$1,000,000 - $1,999,999 0.80%
$2,000,000 - $2,999,999 0.70%
$3,000,000 - $3,999,999 0.60%
$4,000,000 or greater 0.50%
This is not a blended fee schedule. Rather the client is charged based on the assets under
management. For example, a client whose assets are $425,000 will be charged the set fee of
1.00 bp on the entire balance for that quarter.
All accounts for members of the client's family (husband, wife and dependent children) or
related businesses may be assessed fees based on the total balance of all accounts.
Employee Benefit Retirement Plan Services:
The annual fee for plan services will be charged as a percentage of assets within the plan.
Certain pre-existing employee benefit plan services clients may be on a different fee
schedule.
Homan Wealth Advisors, LLC Fee Schedule
Assets under advisement Annual Fee (%)
On the first $1 million 0.50%
On the next $1 million 0.40%
On the next $1 million 0.30%
On the next $2 million 0.25%
On all amounts $5 million or greater 0.18%
Buckingham Strategic Partners Fee Schedule
Assets under advisement Annual Fee (%)
On the First $1,000,000 0.20%
On the Next $4,000,000 0.15%
On the Next $5,000,000 0.08%
On all amounts above $10,000,000 0.05%
Example Calculation at $1,500,000 of Assets:
HWA Fee = $1,000,000 x .50% += $5,000.00
$500,000 x 0.40% = $2,000.00
Buckingham Strategic Partners Fee = ($1,000,000 x 0.20%) + ($500,000 x 0.15%) =
$2,750
Total Plan Fee = $7,000.00 + $2,750 = $9,750.00