A partner's note on fees

Fees are the part of this industry discussed least clearly, which is usually a sign the incentives are worth a closer look. So let me be plain.

Every fee structure creates a behaviour. A fee on assets rewards gathering assets, whether or not the next pound is invested well. A fee on annual performance can reward swinging hard with your money, since the manager shares the upside but not the downside. Neither is wrong on its own. Both need watching.

We have tried to set ours up so we only prosper when partners do, over the horizons we actually invest across rather than one lucky year. We would rather charge a little less and be trusted a lot longer. The cheapest fee going is poor value if it buys you a manager quietly working for themselves.

The views above are the firm's own and are provided for information only. They are not investment advice, nor an offer or solicitation to invest. Capital at risk; the value of investments can go down as well as up, and past performance is not a guide to future results.