Aceeda

Performance-Based Fees

For Investment Advisory Services.

A performance-based investment fee ties a portfolio manager’s compensation to the results they achieve. While there are various ways to structure this type of fee, we aim to keep it straightforward. Our performance-based fee is applied only when a client’s account reaches a new high in value. A percentage is charged on only the return, not the original balance. If a client’s account balance does not have a return, we do not get paid, hence this is known as a performance-based fee. This aligns incentives to create a “win-win” for both the investment adviser and client.

Under the Investment Advisers Act of 1940, investment advisers may charge performance-based compensation to “qualified clients”. A qualified client is defined as an individual or entity with at least $1.1 million in assets managed by the adviser or a net worth exceeding $2.2 million, excluding the value of their primary residence.

If the client does not qualify for performance-based fees, Aceeda Wealth Management can utilize asset-based fees. Read more