Fund Performance Fees

We’re proud to be one of the only fund managers with a fee based purely on performance.

What's So Special About Our Pay for Performance Fees?

Only Pay for Performance

Most funds charge a flat fee, regardless of how they perform.
We don't.

No surprise fees

No platform, account fees.
No entry, exit or ongoing charges.
No administration, custody fees.
No commission. That's our style.

In it together

Our fair fee structure means you pay when we outperform, and we refund during periods of underperformance.

Fee Simulator

When we beat the benchmark, 50% of the outperformance is paid into a reserve, from which we take our fee.

And when the benchmark beats us, refunds are issued at the same 50% rate from the reserve. So we share the good times and the bad.

Try this tool to see our fee in action.

The benchmark value dropped, but not your investment so the fee is half the outperformance. After fees, you may have the same or less than your original investment but have fared better than the market as a whole.

We didn't outperform the benchmark, so no fee.

We beat the benchmark so the fee is half the outperformance. Fewer than one in eight funds outperformed their benchmarks by more than 5% (annualised over 5 years to the end of 2015). So, it’s not an easy thing to do. Source: Lipper for IM

We didn't outperform the benchmark, so no fee. However, refunds are due.

The value of your investment decreased but by less than the benchmark, so you pay a fee of half the outperformance.

Your investment decreased in value and we didn't beat the benchmark, so no fee. However, refunds are due.

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Fund return

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Benchmark return

Relative performance

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Fee charged

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Your fund value

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Our Fees Explained

Sections in this Video
Total Duration: 8:23
  • Chapter 1: Our Fee Explained
    1:30
  • Chapter 2: What's a Benchmark?
    0:59
  • Chapter 3: Active vs Passive Funds
    1:31
  • Chapter 4: How our Fee Works
    1:56
  • Chapter 5: The Reserve
    1:11
  • Summary: About Us
    1:09

The value of your investments may go down as well as up, so you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results.

Questions?

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How Refunds Work

So, half of the fund's outperformance against its benchmark is taken as a fee. But, equally, half of any underperformance in relation to the benchmark is also paid as a refund. This helps cushion you during periods of underperformance.

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Live Chat with our friendly support team from 9am to 9pm, Monday to Friday

If you think our funds suit your needs

Fees compared

Passive funds, which track a benchmark, are gaining in popularity. This is partly because active funds, which aim to beat their benchmark, tend to have higher fees.

With us, you get the best of both worlds. If the fund’s benchmark isn’t matched, you pay less than a passive fund (zero, in fact). However, because we're an active fund you also get the opportunity to outperform the benchmark.

But remember, passive funds generally don’t underperform their benchmarks by more than the fees charged. Active funds can and do underperform by more. At least with us, during periods when this happens, a fee refund mechanism applies.

* Our fee is less than the average charged by active funds, unless we beat the benchmark by more than 2.75%. Fewer than one in four active funds achieve this level of performance.

(Average flat fee of 1.39% assumes a 0.75% Annual Management Charge, 0.29% additional expenses and 0.35% platform fee. The 1 in 4 figure refers to peer group funds over the last 5 years. Source: Lipper for IM, Q4 2015)

Questions?

Live Chat with our friendly support team from 9am to 9pm, Monday to Friday

If you think our funds suit your needs

Global Equity Fund Global Balanced Fund UK Equity Fund
Fees applied in 2016Our fees vary because they are based on performance. Figures here apply to the 12 months ended 30 June 2016.
Platform/ account feesFund platforms often charge between 0.25% and 0.45% per annum of assets held. We don't. 0% 0% 0%
Entry/ exit chargesSome funds apply one-off charges when you buy or sell investments. We don't. 0% 0% 0%
Annual Management Charge (AMC)*A fee to the fund manager. We don't charge a fixed management fee. 0% 0% 0%
Operating expenses*Other operating expenses - such as those levied by the auditor and custodian. We cover these costs rather than charging them to the fund (up to 0.1% of NAV or £1m per annum). 0% 0% 0%
Performance feesA fee amounting to 50% of benchmark outperformance is payable. Details are available below. 0% 0% 0%
Trading costsCosts associated with buying and selling stocks and shares on the fund's behalf 0.09% 0.10% 0.31%
Total cost 0.09% 0.10% 0.31%
Other related information
Portfolio turnoverThe percentage of assets within the fund that are bought or sold over one year. 35% 42% 51%

Enhanced disclosure on fees as recommended by the Investment Association is also available

Performance fee details

When the fund underperforms its benchmark, this reserve is used to issue refunds at the same rate. As such, half of the underperformance is refunded back to the fund.

The reserve is also used to pay the fund manager a fee. This "draw" is capped at 1/3 of the value of the reserve. The fee is calculated and paid daily, but the rate is annualised.

Furthermore, the draw is capped at an annualised rate of 2.5% of the value of the Standard share class of the fund. This limits the draw when the reserve is large compared to the size of the fund.

The draw will continue as long as there is money in the reserve, regardless of whether the fund is out- or underperforming.

Because the reserve applies to the whole fund, individual investors may benefit from it to different degrees, depending on when they invest or withdraw their money.

Questions?

Live Chat with our friendly support team from 9am to 9pm, Monday to Friday

If you think our funds suit your needs

Questions?

Live Chat with our friendly support team from 9am to 9pm, Monday to Friday

If you think our funds suit your needs