The art of transparency

If you are investing money with a company, would you really like there to be any secrets? We believe our clients have the right to know all information pertaining to their portfolios – including the investment manager fees. One of our key principles is transparency and therefore we fully disclose the underlying investment manager’s fees including performance-based fees.

It is common practice within the industry for investment managers to quote fees on several bases:

  • Flat-base fee (without performance-based fee)
  • Sliding fee scales (without performance-based fee)
  • Base fees plus performance-based fees

The fees quoted by investment managers are dependent on many factors. These include, but are not limited to, whether or not the investment manager’s portfolio includes global exposure, the legal vehicle required by the client, the existing relationships between various service providers and investments held with the platform provider.

Performance-based fees are often appealing to clients as they believe performance-based fees align their interests with that of the investment manager. However, in many cases, performance-based fees are designed to offer upside in manager fees that is not proportionate to the delivery of true consistent outperformance and the level of risk assumed.

We therefore believe in limited performance-based fees and prefer to show clients the total expense ratios. This encourages comparison between competitors who reflect fees differently.

 Our other key attributes include:

 

The art of transparency
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