The forthcoming Unicorn UK Smaller Companies fund will be run with a performance related annual mana...
The forthcoming Unicorn UK Smaller Companies fund will be run with a performance related annual management charge.
Peter Walls, a director of Unicorn, said the charging structure would be similar to that of Gartmore's focus funds, which has a 2% annual management charge on funds where it has returned top quartile performance and rebates this to investors when performance dips below top quartile. This is based on month to month performance and to date applies to Gartmore's UK, European and Global Focus funds.
Unicorn's Falcon investment trust already has such a charging structure in place. charging an annual management fee of 1% per annum, but in months where the fund has outperformed the market, a percentage of this outperformance, capped at 1%, is levied, taking the maximum amc to 2%.
If the trust falls 5% and the market drops by 10%, a performance fee will not be levied, despite the fund's outperformance.
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