Fees
Under $100,000 - 1.25% of assets under management
$100,000 - $499,999 - 1.125% of assets under management
$500,000 - $999,999 - 1% of assets under management
$1,000,000+ - 20% of profits*
Management fees are billed quarterly. The assets under management fee is based on average assets under management during a quarter. For instance if you have $200,000 average assets under management, the fee will be $625 ($200,000 * (1.25%/4)).
Performance fees are billed annually. The performance fee is based on the profits earned during the year. For instance, if you begin the year with $1.2 million and end the year with $1.3 million, profits are $100,000 and the performance fee is 20% of those profits or $20,000.
Performance fees are also subject to what is known as the “high water mark” provision. For instance, if in the prior year your account decreased from $5 to $4.5 million, future performance fees will only be charged for returns above $5 million. If in the following year, your account increases to $4.75 million there will be no performance fee as it will still be below your “high water mark” of $5 million.
* Performance based fee models are legal only for investors with a net worth of $1 million or greater, or with income of $200,000 or more for the last 3 years.
