At Equitile fees are designed to encourage better investment behaviour and foster a healthy relationship with our clients. We work from a simple principle – clients shouldn’t pay for something they don’t get.
We only charge our management fee on assets up to the level that covers our ongoing costs and provides our clients with a stable investment management service – through good times and bad. On assets above that level we charge performance fees based on absolute investment returns.
For us it’s a matter of fairness. By capping our management fees we share our economies of scale with our clients, who enjoy falling fixed costs as our business grows. At the same time, as assets grow, our fees become increasingly reliant on investment returns. This incentivises us to make earning you impressive returns our priority ahead of asset gathering.
We believe an investment management industry more reliant on performance fees linked directly to investor returns would act more responsibly, be less willing to fund asset price bubbles and foster a more stable financial system.