The essence of the Banyan Tree fee structure is simple: we do not get paid till we have added value to your portfolio.
Our only source of revenue is the performance fees that we earn when we have increased the size of your portfolio. This aligns our interests perfectly with yours, and ensures that we work actively towards increasing your returns, while at the same time make all efforts to ensure that the drawdowns in a down market are low. We have been following this philosophy since inception, and believe it is fair (something we feel comfortable charging our friends and family too!!), and we intend to continue with this structure.
- Fixed Fee : Zero fixed management fees.
- Performance Fee
- Performance based management fees would be charged based on performance over and above a hurdle rate of 5%. In case the portfolio return achieved at the end of the year is above the hurdle rate, a Performance Fee would be charged at 20% on the incremental return above the hurdle rate.
- In case the performance of the portfolio is below the hurdle rate of 5% in any year, the Portfolio Manager would have to make up for this hurdle rate and the subsequent year’s hurdle rate before the performance fee would be applicable.
- The client will be billed on an annual basis
- There is no entry or exit load