This is a discretionary investment management account with a diversified investment strategy whereby clients can access our expertise and benefit from maximum returns through risk diversification.
Fee Structure
There are two choices of fee structure:
Flat Management Fee
A management fee of (negotiable) will be charged. The fee will be calculated and paid quarterly in arrears in the months of March, June, September and December, based on the weighted average method by reference to the market value of the Portfolio at the end of each month.
The fee will be pro-rated in respect of the initial period of our appointment. Should the balance in the account be fully withdrawn or the account closed before the end of the respective quarter, the management fee charged shall be pro-rated according to the total number of days the account was under management in that quarter.
This fee will be subject to a minimum of USD250 per quarter, i.e. the greater of the actual management fee or minimum fee will be charged. Payment of this fee will be made under advice by automatic deduction from your account.
Performance Based Fee
A combination of both administrative fee and performance fee will be charged:
Administrative Fee
A minimum basic fee of (negotiable) per annum will be charged. The fee will be calculated and paid quarterly in arrears in the months of March, June, September and December, based on the weighted average method by reference to the market value of the Portfolio at the end of each month.
This administrative fee shall be pro-rated in respect of the initial period of our appointment. Should the account be closed or the asset in the account be fully withdrawn before the end of the respective quarter, the administrative fee charged shall be pro-rated according to the total number of days that the account was under management in that quarter.
This fee shall be debited, under advice, to your account.
Performance Fee
An annual performance fee will be payable annually in arrears in addition to the administrative fee subject to the following terms and conditions set hereinbelow:
Definitions
For the purpose of calculation of the performance fee:
"Annual return" stated hereinbelow shall refer to the percentage (%) annual return.
"Hurdle rate" stated hereinbelow shall refer to the minimum rate of return that has to be achieved before the performance fee can be charged.
"Accumulated Annual return" stated hereinbelow shall refer to the percentage (%) accumulated Annual return that is cumulated from the year subsequent to the year that the percentage accumulated annual return was positive.
Criteria
For the first period of calculation, performance fee will be charged if the Annual return is above the Hurdle rate.
For subsequent years, performance fee will be charged only if :
the Annual return is higher than the Hurdle rate; and
the current year's Accumulated Annual return is positive.
Performance Fee
The performance fee shall be charged based on the following scale:
Annual Return
(based on the weighted average capital) Performance Fee
0-10% Nil
>10% 20%
If the previous year's Accumulated Annual return (%) is positive, then the performance fee shall be calculated based on the absolute return of the Portfolio less the Hurdle rate.
If the previous year's Accumulated Annual return (%) is negative, then the performance fee shall be calculated based on the current year's Accumulated Annual return (%) and the current year's weighted average capital less the Hurdle rate.
Hurdle Rate
For the first year/period under calculation, the Hurdle rate shall be 10%.
Thereafter, the Hurdle rate will be subject to change from time to time in accordance with the prevailing market conditions. The Hurdle rate for the current year shall be the Hurdle rate for the preceding year unless SJAM informs you of a new Hurdle rate within the first month of the fiscal year.
Should the account be closed or the asset be fully withdrawn before the end of the year/period of calculation, the performance fee (if any) shall be calculated up to the date the instructions are received to close the account.
The Administrative and Performance Fee shall be subject to a minimum of USD250 per quarter, i.e. the greater of the actual management fee or minimum fee will be charged. Payment of this fee will be made under advice by automatic deduction from your account.
Source:http://www.sjam-iassist.com/investment_products.asp
