Item 5 – Fees and Compensation
We provide investment supervisory, financial planning and investment consulting services to Clients
primarily under the following fee schedules below:
Part 2A - 4
The H Group, Inc.
Part 2A of Form ADV – Brochure
Assets Under Management - Fee Schedule 1:
Maximum Annual Wealth Management Retainer Fees:
2.05% on assets under $250,000
1.85% on assets between $250,001 and $500,000
1.60% on assets between $500,001 and $750,000
1.35% on assets between $750,001 and $1,000,000
1.10% on assets between $1,000,001 and $3,000,000
0.85% on assets between $3,000,001 and $5,000,000
0.60% on assets in excess of $5,000,000
Client’s asset management accounts subject to Fee Schedule 1 are billed quarterly in arrears. Fees are
paid to us from the client’s account by the custodian upon our submission of an invoice. The quarterly
fee will be equal to the agreed upon annual rate, multiplied by the market value of the account on the
last trading day of that quarter. This number is then divided by four.
Market value includes all account values and transaction information as of the end of each quarter
(not adjusted by any margin debit). To determine value, securities and other instruments traded on a
market for which actual transaction prices are publicly reported are generally valued at the last reported
sale price on the principal market in which they are traded. Mutual Funds are only valued once per
day after the close of the market. Whenever valuation information for specific, illiquid, foreign, private
or other investments is not available through the custodian, our approach will be to value at zero. We
do this in order to not overvalue a position which could potentially over inflate billing calculations.
Alternatively, we may also seek to obtain and document price information from at least one
independent source, whether it be a broker-dealer, bank, pricing service or other source.
Fees for a partial quarter at the commencement or termination of an agreement will be prorated based
on the number of days the account was open during the quarter. Quarterly fee adjustments for
additional assets received into an account during a quarter or for partial withdrawals may also be
provided as negotiated. For fees paid in arrears, there are no pre-paid fees that would be subject to
refund.
Assets Under Management - Fee Schedule 2:
Maximum Annual Wealth Management Retainer Fees:
1.50% on assets under $750,000
1.00% on assets between $750,000 and $3,000,000
0.85% on assets between $3,000,000 and $5,000,000
0.60% on assets in excess of $5,000,000
Client’s asset management accounts subject to Fee Schedule 2 are billed quarterly in advance. Wealth
Management fees are based solely upon the quarter end market value of the accounts per household
and are assessed in advance at the end of each calendar quarter.
Payments will be calculated and deducted from Client’s account on a quarterly basis. The custodian
will deduct the fee from Client’s account and remit the fees to Advisor or an Agent authorized by
Advisor to collect such fees on its behalf.
Part 2A - 5
The H Group, Inc.
Part 2A of Form ADV – Brochure
Fees for a partial quarter at the commencement or termination of an agreement will be prorated based
on the number of days the account was open during the quarter. Quarterly fee adjustments for
additional assets received into an account during a quarter or for partial withdrawals may also be
provided as negotiated.
Financial Planning & Advisory Hourly Fee Schedule:
We may also provide investment advice or financial planning to Clients on an hourly or fixed rate fee.
Our maximum hourly rate is $250.00 per hour (plus applicable taxes) depending on the complexity of
the issue being addressed. Fixed fee project pricing is quoted for each project, depending on the scope
of work performed. Notwithstanding the above, fees are generally negotiable.
We may modify the terms of any fee agreement by giving Clients 30 days written notice in advance.
Wealth Management Retainer Fees may be negotiable under certain circumstances. Payment of fees
may result in the liquidation of Client's securities if there is insufficient cash in the account.
Clients may be charged a one-time set-up fee of up to $250.00 per account. A quarterly fee of up to
$37.50 may be charged per account for administrative services. Clients also pay trading fees and
commissions on discretionary trades initiated by us. Clients will also be charged up to $35.00 per trade
as an administrative fee by us for any Client directed trades. Notwithstanding the foregoing, fees are
generally negotiable.
Clients may also be required to pay other miscellaneous charges or fees directly to the custodian (e.g.
wire fees) as stated in the custodial agreements. Additionally, mutual funds and/or exchange traded
funds have additional internal expenses which generally include a fund management fee, other fund
expenses, and a possible distribution fee. In addition, some funds charge a redemption fee on shares
bought and sold within a short period. Funds describe their expenses in their prospectuses, summary
prospectuses, or product descriptions. Clients are advised that these fees are separate and additional
expenses incurred by the Client. See Item 12 for additional information on Brokerage Practices.
Our fees include the time necessary to work with Client's attorney, accountant or other third party
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