Fees and High  Watermark

Our Fees

We charge a small fixed fee of 0.17% (17 bps) p.a. to actively manage your US equity portfolio.

 

We also charge a performance-linked fee of 30% on your portfolio's excess return above the S&P 500 index, only if the following conditions are met:

1).  we exceed the S&P 500 index return, and

2). we exceed your account's accumulated total return in comparison to the S&P 500 index. See below, for more information about high watermark protection. 

As an example, our fee for managing an investment portfolio of say, $250,000 for 1 year would be $425 (calculated as $250,000 x 0.17%). A performance fee is charged only if the following conditions are met:

1).  we exceed the S&P 500 index return, by 2% for example, which equates to an outperformance of $5,000, and

2). we exceed your account's accumulated total return in comparison to the S&P 500 index. 

In this example, our performance fee would be $1,500, calculated as $250,000 x 2% outperformance x 30%. 

Therefore our total fees will be $1,925 for 1 year, calculated as $425 + $1,500. 

High Watermark

 

The high watermark is the highest return your account has achieved in comparison to the S&P 500 benchmark since the account was launched.  

 

A performance fee is only charged when your account's accumulated total return in comparison to the benchmark reaches a new high. When this happens, the high watermark is reset at this level.

 

High watermarking keeps track of accumulated losses, based on the relative performance of your account versus the broad market index, S&P 500, from prior periods. We cannot charge a performance fee if accumulated losses exist.