Standard practice in the investment industry is to charge a percentage of assets under management (“AUM”) as the fee e.g. a 2.01% MER (Management Expense Ratio) is the norm in Canada. Equity Mutual Funds and separately managed investor accounts also bear transaction related costs and custodial charges in addition to any management fees that are paid to the investment manager. In spite of such high fees, history has shown that most fund managers fail to beat the index over time, and the average under-performance is approximately equal to the MER charged by the funds. Moreover, the MER is a tax that acts as a drag on contributed capital cumulatively, as seen in the prospectus filed by various funds.
|Assets Managed||Monthly Fees|
|Up to $10,000,000||1% per annum charged monthly|
|More than $10,000,000||0.50% per annum charged monthly|
Our fee is half of the average mutual fund fee. We do not charge any success fee or benchmark related fees. We intend to manage you funds conservatively for the long run and benefit our clients via asset growth over medium to longer term. We don’t intend to hit home runs for our clients. We intend to collect enough singles over time to add up to a winning total.