Here at Heritage Investors, we manage your accounts in a fee arrangement. Meaning we are not paid by commissions, sales or transaction charges, revenue sharing, kickbacks, or any other form of compensation in the management of your investment accounts. This is important because it means we are paid by your account’s balance, not by selling you services or options you don’t need in order to earn a commission.
The Portfolio Management Fee Structure
Clients new to Heritage Investors will be assessed two different fees: Fee’s based on the total assets under management (AUM) and technology fees. The specific amounts of these fees will be clearly communicated during our initial meetings.
Estimated Portfolio Management Fees:
To give you an idea of what you might expect to pay, here are five blended yearly rates based on our fee schedule:
|Assets Under Management Blended Fee Schedule Example:||Estimated Breakdown per year|
Actual Portfolio Management Fees:
The actual ongoing management fees* based upon assets are as follows:
|Assets Under Management||Fee Breakdown per year|
|$5,000 - $250,000||1.20% up to $250,000|
|$250,001 - $600,000||1.20% on the first $250,00 plus 1.10% on the difference|
|$600,001 - $1,500,000||1.20% on $250,00, plus 1.10% on $350,000, plus 1.0% on the difference|
|$1,500,001 - $3,500,000||1.20% on $250,00, plus 1.10% on $350,000, plus 1.0% on $900,00, plus 0.9% on the difference|
|$3,500,001 - $5,000,000||1.20% on $250,00, plus 1.10% on $350,000, plus 1.0% on $900,00, plus 0.9% on $2,000,000, plus 0.75%
on the difference.
|$5,000,001 and up||Negotiable|
- $300,000 in Assets Under Management = $3,550 per year (1.20% on $250,000 + 1.10% on $50,000)
- $2,000,000 in Assets Under Management = $20,350 per year (1.20% on $250,000, + 1.10% on $350,000, + 1.0% on $900,000, + 0.9% on $500,000)
These management fees are paid pro-rata in January, April, July, and October in advance at the beginning of each billing period and are assessed based upon the account asset value(s) on the last business day of the previous billing period. When an account is established, the management fee is charged for the remainder of the current billing period and is based upon the initial contributions. Some transaction fees are passed on to our clients and could be higher in the first year as our strategy is implemented.
* The fee schedule above is for new individual clients of Heritage Investors, LLC., who meet the minimum asset management requirement and who are assigned a Heritage Investor Advisor to assist them with discretionary investment management services. This fee schedule for institutional/401(k) management or other ancillary business areas at Heritage Investors differ from the aforementioned fee’s.
Effective date: 1/1/2021
We would be happy to walk you through our portfolio management fees in greater detail with a complimentary, no-obligation consultation. Begin moving toward your financial goals by calling 865-690-1155 or scheduling a meeting with our team.
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