What fees will I pay?

Investment Advisory Fees

• For investment advisory services, we charge an ongoing monthly, asset-based fee of a percentage of the value of your assets in the account we manage, which will be reflected in quarterly statements.  The more assets you have in this type of account, the more you’ll pay in fees, which creates an incentive to encourage you to increase the size of your account.  Advisors receive a standard, fixed percentage of the fee for compensation in order for us to mitigate conflicts of interests.

• Minimum Fee: In some cases, a fee will be imposed if a minimum account size is not maintained, in which you will be charged a percentage of the required minimum account size, regardless of having less in the account. This results in a higher percentage of fees to manage your account..
• Financial Planning:  If you elect to utilize our financial planning services, but do not wish to invest your money with us, we will charge a fee of up to $250 per hour, as agreed upon with your Professional.
• Hourly Fees: Additional fees may be charged for work outside the normal scope of investment advisory services. Fees are negotiable and will be based on individual requirements and the complexity of needs. Typically, fees are based at a rate of $200/ hour and up, depending on services required, or as agreed upon in writing with your Advisor before the engagement initiates. 

Brokerage Services Fees

• Sales Loads: For investments in certain products like mutual funds and annuities, we receive transaction-based fees from the investment product sponsor¹ in the form of asset-based sales charges. These fees are based on the amount invested in a certain product and in some cases may also be dependent on how long you hold the investment position. These sales loads create an incentive for us to recommend certain products or product sponsors based on the fees we collect. 

• For investments in stocks or ETFs, the transaction-based fee is usually charged as a separate commission or sales charge. For investments in bonds, this fee is typically included as part of the price you pay for the investment (called “markup or markdown”). 

• Commissions: we charge a transaction-based fee every time you buy or sell an investment. The amount you pay as a transaction-based fee varies according to the particular investment and amount invested. We collect these fees each time a transaction takes place, which creates an incentive for us to encourage you to trade often. 

Description of Other Fees and Costs

If applicable to your account, we will charge you directly for other fees in addition to brokerage commissions and/or advisory fees, including: (1) account maintenance fees such as custody, trade confirmation processing, corporate actions and transfer fees; (2) cash management fees, such as cash sweep, checking and wire fees; and (3) investment-specific fees such as those for administration of alternatives investments or for foreign securities.  You should understand that these fees are not charged by us if your investment is in an account that is held directly with the fund sponsor. Advisory fees do not include any brokerage commissions, transactional costs, redemption fees, wire transfer fees, overnight check fees, account closing fees, or any other charges imposed by the administrator, custodian, or other service provider. 

You will pay fees and incur costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time.

For additional information, please request a copy of our Regulation Best Interest (“Reg BI”) Disclosure Brochure and review Item 5 of our ADV Part 2A. You may also refer to your account opening paperwork, consult with your financial professional, or contact our Chief Compliance Officer, Thomas Shoemake. 

What are your legal obligations to me when providing recommendations as my broker-dealer or when acting as my investment adviser? How else does your firm make money and what conflicts of interest do you have?

When we provide you with a recommendation as your broker-dealer or act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money may create some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the recommendations and investment advice we provide you. Here are some examples to help you understand what this means: 

Third-Party Payments

We receive compensation from third parties related to investments you make in certain products, including mutual funds, ETFs and annuities.  This compensation includes ongoing distribution charges, such as 12b-1 fees or commission trails, which an investment product charges you and then pays to us.

HORAN Capital Advisors, LLC

HORAN Capital Advisors, LLC (referred to as “HCA”) is under indirect common control with HSI. Depending on the relationship you have with us and the products or services you receive, your financial professional will be paid commission and/or fees from the sale of mutual funds, insurance, and other investments and services offered. Certain officers and directors of HCA also serve as officers and directors of HSI which create an incentive for us to refer business between the two entities. For accounts shared between HWM and HCA, higher fees are applied compared those managed directly by HWM. Under the sub-advisory arrangement, a portion of the advisory fee is paid to both entities under the terms of a Sub-Advisory Agreement between the entities. This incentivizes both entities to utilize each other’s services because of the higher fee schedule, referral opportunities, and fee sharing arrangements. 

HORAN Associates, Inc.

HORAN Associates, Inc. (referred to as “HAI”) is an employee benefits / insurance brokerage firm offering, health, disability, dental, vision and miscellaneous other lines of benefit coverage. HAI owns a 35% stake in HSI, and is under common ownership and control as HSI. We encourage our Professionals to refer you to use companies within our network of organizations.  If you elect to purchase an insurance product through HAI, 
your Professional will receive a discretionary form of compensation from that purchase, therefore creating an incentive to encourage you to buy insurance products with us. 

Internal Solicitors Arrangement

All HORAN affiliated employees, in good standing and after background review, have the opportunity to enter into a solicitors arrangement with HORAN Wealth Management, the investment advisory part of HSI.  Employees that refer business to HWM will receive a solicitor’s fee of 10% of the first years revenue derived from the assets under management. Currently, we do not enter into solicitors’ arrangements with individuals outside of HORAN. 

For additional information, please request a copy of our Regulation Best Interest (“Reg BI”) Disclosure Brochure and see Items 4, 5, 10 and 14 of our ADV Part 2A. You may also refer to your account opening paperwork or consult with your financial professional.  

How do your Financial Professionals make their money?

All of our Professionals are employees of HSI, or one of our affiliated companies.  The employment agreement between each Professional and HSI sets out the payments we make to them.  Those who provide investment advisory services receive a portion of the advisory fee you pay.  Those who provide you brokerage services receive a portion of the commissions or markups/markdowns from your trades.  Employees that market retirement plans to businesses receive a commission based on the sale of a plan. HORAN collects an ongoing management fee for administering the plan. Receiving a portion of the advisory or brokerage fees you pay to us creates an incentive for them to encourage you to increase your investment account size or trade more frequently.  Our Professionals also receive different levels of compensation for selling different types of investments or services.  This could include, for example, a share of the 12b-1 fees², trail commission³, or sales loads⁴ paid to us by an investment product sponsor.  Although your Professional is required to recommend investment products or manage your account in your best interest, these additional forms of compensation create a potential incentive for them to recommend specific financial products. 

Do you or your Financial Professionals have legal or disciplinary history?

Firm - YES. Financial Professionals - No. 

These may be reviewed in detail via FINRA’s BrokerCheck.  Visit www.investor.gov/CRS, or FINRA’s BrokerCheck for free and simple search tools to research our firm and our financial professionals. 

Additional Information

For additional information about our products and services, visit www.Investor.gov or BrokerCheck.Finra.org, or visit our website: https://www.horanassoc.com/ and review your account agreement.

For additional information on advisory services, see our Form ADV brochure on the SEC's Investment Advisers Public Disclosure website ("IAPD"), which can be found on Investor.gov, or on our website and any brochure supplement your Professional provides.

To report a problem to the SEC, you can visit www.Investor.gov or call the SEC’s toll‐free investor assistance line at (800) 732‐0330. To report a problem to FINRA, you can visit www.finra.org or call their help line at (240) 386-4357.

If you have a problem with your investments, account or financial professional, please contact our Chief Compliance Officer, Thomas Shoemake, in writing at 8044 Montgomery Road, Ste 640, Cincinnati, Ohio 45236 or by email at TomS@horanwealth.com.

¹ Sponsor means the underwriting insurance company, mutual fund, or other investment company.
² A 12b-1 fee is an annual marketing or distribution fee on a mutual fund. The 12b-1 fee is considered to be an operational expense and, as such, is included in a fund's expense ratio.
³ A trailing commission is a fee that you pay a financial professional each year that you own an investment. The purpose of a trailing commission is to give an advisor an incentive to review a client's holdings and provide advice.
⁴ A load is a sales charge paid by mutual fund investors to the brokers or agents who sell the fund to them.