Fees That Encourage Shared Success
It is always our intention that every client relationship will be a long term one. For this reason we will outline with you in our first meeting who we are, what we do and how we are remunerated. From our point of view we need to gain a thorough understanding of your circumstances and, more importantly, your dreams and aspirations for yourself and your family. This meeting is an opportunity to get to know each other before we agree to work together to ensure there is a synergy. There is no charge for this first meeting.
Initial Advice Preparation
The work covered in the initial preparation of advice includes developing the strategies, preparing the recommendations and the basis on which they are given, along with information about all fees and costs that may be incurred when you accept our recommendations. The fee for this document will vary depending on your individual circumstances and the complexity of advice required however this will be agreed with you prior to any advice being developed.
Implementation Fees
If you adopt the investment proposals, an implementation fee of between 1.1% and 3.30% (inc. GST) may apply to your initial investment capital and any lump sums that are added to your portfolio(s). Any other ad hoc implementation fees will be outlined to you in your SOA.
Investment Management / Ongoing Fees
The fees to manage your portfolio(s) will vary depending on your risk profile and the size of your portfolio. Once this is known a detailed fee schedule will be disclosed and agreed with you at the outset.
Where we are managing multiple portfolios on your behalf we are able to aggregate the combined Funds Under Management (FUM) to calculate your Investment Management Fee. Fees are deducted on a monthly basis.
Performance Based Fee
Before implementing your portfolio we agree on performance benchmarks that align with the objectives for your portfolio. Where we are able to generate performance in excess of these benchmarks, net of the ongoing management fees, we then share in 22% (inclusive of GST) of any excess return.
Our fee structure ensures our interests are aligned with yours. Where we have been able to generate excess returns, you benefit from strong returns and we are also rewarded. Should the performance of your fund not reach the agreed benchmark, this shortfall will be recovered prior to us earning any subsequent performance fee.
Brokerage
Brokerage charges are an additional cost to your portfolio, paid at rates which we have negotiated and which are very competitive when compared to charges for similar services. A portion of the brokerage is paid to Vivid Financial as we manage the execution of trades on client portfolios.