Overview
Heritage Asset Advisors Ltd., LLP (“Heritage”) is an independent investment advisory firm based in Houston, Texas.
Heritage was founded in 2007 and is privately held. The firm’s principal owners include Patrick F. Shinn and Anne E. Shinn.
Advisory Services
Heritage provides investment advisory services related to debt and equity securities, mutual funds, index funds, exchange-
traded funds, options, and other investments to individuals, pension and profit sharing plans, trusts, estates, charitable
organizations, and business entities (collectively, "Client(s)") through two programs with different levels of service and fees:
(i) an hourly consulting arrangement and (ii) a wrap fee program. A separate wrap fee program brochure will be provided
to wrap fee clients, and is available to other interested parties upon request.
(i) Hourly Consulting
Heritage provides advisory services to a portion of its clients (“Hourly Clients”) through an hourly consulting
arrangement. Services may include advice regarding future trades for the Hourly Client to enact, asset allocation
changes, periodic rebalancing or any other service requested by the Hourly Client. Upon request from such Hourly
Clients, Heritage will meet or confer on an hourly basis, with charges dependent upon the level of Heritage
personnel providing the service and due immediately upon provision of consulting services. To become an Hourly
Client an individual or organization must:
• Complete a Client Profile that describes the Hourly Client’s financial needs, investment objectives, time
horizon, risk tolerance, and personal restrictions on investing in certain securities or types of securities, as
well as any other factors relevant to the Client’s specific financial situation (the “Client Profile”) and any
other supporting documentation;
• Complete an Hourly Consulting Agreement which requires the Hourly Client to accept responsibility for all
transaction, margin, wire and custodial fees; and
• Initiate all services to be provided by Heritage and make the ultimate decision regarding the purchase or
sale of investments. Services will only be provided when specifically requested and Hourly Accounts will
not be regularly monitored or continuously supervised.
Depending upon the nature of the services requested the Hourly Client may:
• Complete a new account agreement with Charles Schwab & Co., Inc. (“Schwab”) or another custodian /
broker-dealer approved by Heritage for participation in the Program (“Custodian”); and
• Open a securities brokerage account with the custodian / broker-dealer (“Account”) and deposit those
assets designated for participation into the Account.
(ii) Wrap Fee Program
The Heritage Asset Advisors Ltd., LLP Wrap Fee Program (“the Program”) is a fee-only investment advisory
program sponsored by Heritage. The Program provides Wrap Fee Clients with investment advisory services and the
ability to trade in eligible securities without incurring separate brokerage commissions or transaction charges. As
further discussed in the ‘Fees & Compensation’ section of this brochure, a portion of the wrap-fee paid to Heritage
by the Wrap Fee Client is retained by Heritage for its investment advisory services after paying the Program’s
custodian and broker-dealer its asset-based compensation, described in greater detail below.
To join the Wrap Fee Program an individual or organization must:
• Complete a Client Profile that describes the Wrap Fee Client’s financial needs, investment objectives, time
horizon, risk tolerance, and personal restrictions on investing in certain securities or types of securities, as
well as any other factors relevant to the Client’s specific financial situation (the “Client Profile”) and any
other supporting documentation;
• Complete the investment advisory wrap fee agreement (the “Program Agreement”) and become a client
(“Wrap Fee Client”) of the Program;
• Complete a new account agreement with Charles Schwab & Co., Inc. (“Schwab”) or another custodian /
broker-dealer approved by Heritage for participation in the Program (“Custodian”); and
• Open a securities brokerage account with the custodian / broker-dealer (“Account”) and deposit those
assets designated for participation in the Program into the Account.
After an analysis of the information provided by the Client in the Client Profile, Heritage shall assist the Client in developing
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an appropriate investment strategy for the assets in their Account (the “Investment Strategy”). Thereafter, Clients will be
contacted periodically and are requested to provide Heritage with information regarding changes to their financial situation or
investment objectives affecting their Client profile. Heritage shall periodically reassess the current Investment Strategy based
on any other information provided by the Client regarding their Client Profile.
Assets Under Management
Heritage manages assets on a discretionary and non-discretionary basis. As of 12/31/2023, discretionary and non-
discretionary assets under management (including cash) totaled approximately $239,896,883 and $5,765,276 respectively.
FEES & COMPENSATION
Heritage is compensated for its investment advisory services based on (i)
hourly charges (for Hourly Clients only) or (ii) a
percentage of assets under management (for Wrap Fee Clients only).
Hourly Compensation
Hourly charges are assessed and due at the close of the meeting (or upon delivery of the service). Charges are based upon the
hourly rate of the individual providing the service. Patrick Shinn is billed at $200/hour, and all other investment advisory
personnel at $100/hour. Hourly Clients are responsible for any brokerage transaction, margin, wire, and custodial costs and
fees. Additional information about brokerage fees is provided in the ‘Brokerage Practices’ section of this brochure.
Wrap Fee Compensation
Clients in the Wrap Fee Program pay an annualized fee for participation in the Program (the “Program Fee”) ranging between
0.75% and 1.50% of the market value of the assets being managed by Heritage professionals under the Program (see table
below). The Program Fee may be negotiable under certain circumstances.
Assets Under Management Annual Wrap Program Fee
$0 to $625,000 1.5%
$625,001 to $1,000,000 1.25%
$1,000,001 to $3,000,000 1.0%
Greater than $3,000,000 0.75%
The Program Fee is payable quarterly, in advance, based upon the market value of the assets in the client’s account (the
“Account”) as reported by the account custodian on the last day of the previous quarter. Additional deposits and withdrawals
of funds and/or securities to the Program may be made to the Account at any time. Program Fees are calculated
pro rata for
partial billing periods (and additions or withdrawals of assets totaling $10,000 or greater) based upon the value of the assets
in the Account and the number of days in the calendar quarter. If the Client terminates their agreement with Heritage, the
Program Fee will be assessed
pro rata and refunded to the Client in a timely manner.
Heritage’s Program Agreement and the Client’s agreement with the Custodian authorize the Custodian to deduct the Program
Fee from the Client’s Account and remit it directly to Heritage. In arrangements where the Program Fee is deducted directly
from the Client’s Account, the Custodian will send the Participant a statement, at least quarterly, indicating all amounts
disbursed from their Account, including the amount of the Program Fee paid directly to Heritage.
Participation in the Program may cost Clients more than purchasing brokerage and advisory services separately. The number
of transactions made in an Account, as well as the commission rate charged by a broker-dealer for each transaction, would
determine the relative cost of the Program versus paying for execution on a per transaction basis and paying a separate fee for
advisory services. However, Heritage does not generally seek to offer accounts where Clients pay for services on a per
transaction basis and the Program Fee may be higher or lower than fees charged by other sponsors of comparable investment
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advisory programs. Effective 10/7/19, Schwab eliminated commissions for online trades of U.S. equities, ETFs and options
(subject to $0.65 per contract fee). We encourage Clients to review Schwab’s pricing to compare the total costs of entering
into a wrap fee arrangement versus a non-wrap fee arrangement. To see what you would pay for transactions in a non-wrap
account please refer to Schwab’s most recent pricing schedules available
at www.schwab.com/aspricingguide.
Program participants may incur certain charges imposed by third parties in addition to the Program Fee. Such charges
include but are not limited to charges imposed directly by a mutual fund, money market fund or exchange traded fund
purchased in the Client’s Account which are disclosed in the fund’s prospectus (e.g., fund management fees and other fund
expenses, including mark-ups and mark-downs), certain deferred sales charges on previously-purchased mutual funds, odd-
lot differentials, spreads paid to market makers from whom securities were obtained by the broker-dealer, fees for trades
placed away from the Custodian at another broker-dealer, transfer taxes, wire transfer and electronic fund fees, and other fees
and taxes on brokerage and securities transactions.
Heritage is charged an asset-based fee directly by its primary Custodian / Broker-Dealer (Charles Schwab, as noted below in
the Other Financial Industry Activities & Affiliations section) which has been negotiated by Heritage. Clients are not
separately charged transaction fees in the Wrap Fee Program. The asset-based fee that Heritage pays to Charles Schwab is
intended to cover trading costs in the Wrap Fee Program. This asset-based fee does not apply to cash, and therefore, Heritage
has a conflict of interest in allocating Client assets to cash in the Program to avoid paying the asset-based fee. Heritage
mitigates this conflict of interest by disclosing it to clients. Heritage also believes that this conflict is mitigated by Heritage’s
desire to increase the value of a Client’s portfolio.
PERFORMANCE-BASED FEES & SIDE-BY-SIDE MANAGEMENT
Heritage accepts hourly and asset-based fees as discussed above. The firm does not currently accept performance-based fees.