Fees

Clients in Hennion & Walsh’s portfolio management program pay no commissions, trading costs, brokerage fees or other administrative charges. Our service is paid for with a single annual fee that is both calculated and charged quarterly. And we don’t hide our fee, it is itemized clearly and transparently on your statements.

Private Investment Management (PIM) Standard fee table:

Asset Under Management (AUM) Annual Fee %
First $250,000 1.50%
Next $250,000 1.40%
Next $500,000 1.25%
Next $4 million 1.00%
Over $5 million 0.75%

The fees above are applied in a “wedding cake” style, meaning we calculate your fee by looking at your total assets under management (AUM), and calculating the fee for each AUM range, and ultimately blending the fee. For example, if you are considering placing $1 million in our private investment management program, your fee would be calculated as follows:

Assets Under Management (AUM) Annual Fee%
First $250,000 1.50%
Next $250,000 1.40%
Next $500,000 1.25%
Blended Fee 1.35%

In some cases our investment policy committee may decide that it is in a client’s best interest to allocate a specific portion of a portfolio to a separately managed account. In such cases, this portion of the portfolio only may be subject to a modified fee schedule.

Are Management Fees Tax Deductible?

You may be able to claim your management fee on taxable accounts as a deduction to your federal taxes if:

a) You can file it under “Certain Miscellaneous Deductions” on Schedule A
AND
b) Schedule A deductions total more than 2% of your Adjusted Gross Income (AGI)
AND
c) You are not subject to the Alternative Minimum Tax (AMT)

As to the tax-deductibility of management fees on non-taxable accounts (IRAs etc), there is unfortunately no clear-cut answer. Although most tax professionals believe that management fees on non-taxable accounts can indeed be claimed as a deduction, others believe they can only be claimed if the account in question creates taxable income for that year. To find out whether your management fees on a non-taxable account are tax-deductible, please consult with your tax professional.

If you have any questions about the tax-deductibility of your management fees, please consult a tax professional.

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