Our variable fee structure aligns with our core philosophy that we should earn our fees only when our clients achieve financial gains. This approach motivates us to avoid complacency or excessive risk-taking. If the portfolio suffers a significant and permanent decline, it impacts not just the client, but also our eligibility for fees.
FAQ Category: Fee Structure & Taxation
Can you share your fee structure and any additional charges that may apply?
Our fee structure is based on performance. We only charge a fee when the client’s returns exceed a threshold of 5%. Specifically, a performance fee of 20% is levied on the incremental return above this 5% hurdle rate.
If the portfolio’s performance falls below the 5% hurdle rate in any given year, we must first compensate for this shortfall and achieve the hurdle rate for the subsequent year before any performance fee can be applied. Clients are billed annually for this fee.
Importantly, there are no entry or exit loads, and clients are not subject to any lock-in period with our services.