Fees & Compensation
Option 1: % of Assets Under Management
Heron Wealth bases its fees on a percentage of assets under management.
Clients invested in the “separately managed accounts” program generally pay a management fee equal to 1% on an annualized basis with respect to the first $2 million in assets under management in a client account and pay a management fee equal to 0.75% on an annualized basis with respect to assets under management in a client account that exceed $2 million.
Clients invested primarily in mutual funds or exchange traded funds generally pay a management fee equal to 0.75% on an annualized basis.
Clients invested in the “manager of managers” program generally pay a management fee equal to 0.50% on an annualized basis. The client also pays a management fee to the sub-advisors of about 0.50% on an annualized basis.
Clients invested in annuities pay a management fee equal to 0.50% on an annualized basis.
Heron Wealth fees may be negotiated based on the size and type of investments involved. A variance in fees may be appropriate in cases in which a client requests special account structures or has atypical objectives. Heron Wealth reserves the right to change, reduce, or waive our fees in our discretion and to increase or decrease the minimum account size that we accept.
Some client accounts may include exchange traded funds and mutual funds to assist in providing overall liquidity. These funds may charge management fees and expenses in addition to the fees that we charge.
We compute our fees based on the market value of the securities in the account or, in the absence of a readily ascertainable market value, based on the fair value of the securities in the account as we determine fair value in good faith. Marketable securities are marked to market as of 4PM on the last business day of the month.
Option 2: Financial Planning Subscriptions
Financial planning fees are offered on a subscription basis. The minimum monthly fee is $200 for a couple or family, $100 for an individual 30 and older, and $25 for an individual 29 or younger. These fees may be paid by direct debit to the client through Paypal.
Types of Clients
Heron Wealth generally provides investment advice to individuals and families, pension and profit sharing plans, trusts, estates, charitable organizations and small businesses. Client relationships vary in scope and length of service.
Heron Financial Group maintains account minimums for both age and investment platform. Our firm is optimized to serve clients with between $1-10 million in assets, but we recognize that younger clients will build towards those levels over time.
Age based minimums:
The minimum account size is $0 of assets under management for accounts invested primarily in mutual funds and exchange traded funds.
The minimum account size is $500,000 of assets under management for accounts invested primarily in individual stocks and bonds (our “separate accounts” platform.)
The minimum account size is $5,000,000 of assets under management for accounts invested primarily our “manager of managers” program (we place investment of the clients assets with 10-15 outside managers, provide all the reporting, rebalancing and cash distributions for the account.)
Heron Wealth has the discretion to waive the account minimum. Accounts of less than the minimums described above may be set up when the client and the advisor anticipate the client will add additional funds to the accounts bringing the total to the minimum within a reasonable time. Other exceptions will apply to employees of Heron Wealth and their relatives, or relatives of existing clients.