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Fulcrum Fee
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An additional, performance-based fee an advisor charges a client.
The advisor charges the fee when he or she achieves a return above a specified Benchmark.
This is one of the only performance-based fees that advisors are allowed to charge clients. A couple of conditions must be met in order for an advisor to charge a fulcrum fee. First condition is that the returns must exceed the appropriate Benchmark (and if they don't, the base fee must be reduced).The other condition is that the only clients that can be charged are the following: registered investment companies, individuals with an account value greater than $1 million and individuals with an account value greater than $750,000 and a Net worth greater than $1.5 million.
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| Posted by
marcus evans limited
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