Performance fee.
With the performance fee, our success is your success.
Key facts.
Performance fee:
50% above benchmark
Target return:
three. 3%
five. 5%
seven. 7%
Period charged:
monthly
Annual Management Charge:
0%
Fund & transaction fees:
0.2%*
*These costs are indicative and may vary dependent on the investments in your plan. These charges are levied by selected third party fund providers. The Investment Manager will consider cost when selecting funds.
What makes us different.
Most investments charge fees whether you make money or not.
With Thameside, you pay nothing for the management of your investment. You are only charged for performance.
Each of the investment plans has a target return we aim to meet and exceed each year. Any performance over and above your target rate of return is shared 50/50. Until your plan outperforms, you don't pay us a penny.
Why performance fee only?
Fair in the bad times.
Pay nothing when your investment plan is performing below target.
No hidden fees.
*There are no setup, admin or management fees.
Remove the fee risk.
Your original investment will not be eroded due to paying performance fees.
*You may be charged transaction fees and fees from the investments in your plan of approximately 0.2% a year. These costs are indicative and may vary dependent on the investments in your plan. These charges are levied by selected third party fund providers. The Investment Manager will consider cost when selecting funds.
Fee calculator.
Use our online fee calculator to see how our performance fee could work in practice.
Please remember that actual fees may vary depending on how your investment performs.
How the performance fee works.
A performance fee is a type of fee which aligns us with you, our clients. It is a fee that is only charged during periods of positive return above a benchmark.
To calculate your performance fee, we evaluate a benchmark for each account you hold with us.
The benchmark is derived from the target return of your investment plan - 3%, 5% or 7% return per year.
At the end of each month, we review the actual performance of your plan against your benchmark.
If the actual performance of your plan is over the benchmark, you are charged 50% on the excess performance. If your plan underperforms the benchmark, you are not charged a fee.
We always consider all-time account performance when calculating the performance fee. This ensures that you are not charged twice for the same performance – even if your plan is performing above its benchmark.
The ‘benchmark’ is a measure used for comparison when working out investment performance. By comparing your investment’s performance against a benchmark, we can see if you are on track to be above or below your target rate of return.
The benchmark is derived from the target return of your investment plan - 3%, 5% or 7% return per year.
We break down your annual target return into an equivalent monthly rate. Each month after you start your investment, your benchmark increases.
For example, the five. Plan has a target return of 5% per year. If an account has been open for 2 months, the benchmark would be approximately 0.82%.
For full details on how we calculate the performance fee, please read our Terms & Conditions.
As the 'performance-fee-only' model is a new approach - and based on the performance of the investment plans, it is hard to compare costs directly to any other provider.
Unlike most investments that charge a performance fee, this benchmark is a set figure rather than an index. This is to make it clearer to see when you are on or above target.
You only charged one fee to invest with us – the 50% performance fee.
You may be charged costs by the investments within your plans of around 0.2% a year. These costs are indicative and may vary dependent on the investments in your plan. These charges are levied by selected third party fund providers. The Investment Manager will consider best value when selecting funds.
No. We do not charge a management fee. Any management costs are covered by the performance fee.
The performance fee is charged on a monthly basis. As the performance fee is dependent on the actual performance of your plan, we are unable to predict how much you will pay a month.
The target growth of our plans is quoted after (net of) fees. Until your plan is on track to hit its target growth each month, you are not charged the performance fee.