The fee covers management, reporting, committee time and the quarterly letter. The scale below is a sample for this fictional firm, shown the way a transparent manager would publish it.
The percentage applies only to the slice of assets within each band, not to the whole portfolio at once. Sort the columns to see how the blended rate falls with scale, and ask us for a worked example if you are comparing managers.
| First £2m to £5m | 1 % | Quarterly letter | 2 |
|---|---|---|---|
| Next £5m to £10m | 1 % | Quarterly letter | 3 |
| Next £10m to £25m | 1 % | Quarterly letter plus portal | 4 |
| Above £25m | 0 % | Bespoke reporting | 4 |
No. Dealing costs are charged at cost by the broker and shown in the quarterly letter, with nothing added by Ashgrove.
Where we use funds, their ongoing charges are disclosed in the letter. We favour low-cost building blocks and never accept rebates.
Quarterly in arrears from the portfolio's cash balance, based on the average value of assets over the period.
No. A performance fee would reward risk taking we do not want, so our only incentive is for clients to stay and recommend us.
It falls with the portfolio, because it is a percentage of assets. We would rather share a client's bad year than bill as if it never happened.
Registered charities and endowments receive a reduction of ten basis points on every band, reviewed each year by the investment committee.
Tell us the likely size of the relationship and we will return a one-page illustration of the fee over ten years, assuming flat markets.