Our Fees
Our incentive fee is structured so that management’s interest completely aligns with that of our clients.
01
We take no percent of asset under management (AUM) fee. We only take a percent of profit after a threshold is reached.
02
Performance-based fee:
Clients pay 25% of the annualized gain in the market value of their asset under management (AUM) after a fixed 5% gain hurdle. For example, a client has $100 AUM at the start of the year, and their portfolio gains 30% to $130 at year end. The client would be charged 25% of $25 (25% of the 25% gain after deducting 5%).
03
High watermark:
In addition, there is a high watermark that will be applicable for a rolling 5 years basis. Therefore, the client will not be charged a performance fee until the AUM has returned to its original value, in case of losses. The 5% hurdle will not apply during these years and will not be cumulative.
04
Billing annually
The billing and deduction of the fees will be done on an annual basis from the clients brokerage account directly.
The client must consent in advance to direct debiting of their investment account. Payment by check is also acceptable.
Clients should be aware that they will be responsible for all fees imposed by the custodian for trading and other related costs, which can include but not be limited to brokerage commissions, transaction costs, custodian fees, transfer fees, redemption fees on short –term investments, cashiering fees and/or taxes or penalties levied by governmental authorities.
Termination of Services Clients who pay fees quarterly in advance will receive a refund for unearned fees upon termination. Either the client or Boonipat Advisory may terminate the Firm’s services without penalty at any time. The Firm determines the amount to be refunded to the client, if any, by subtracting its fees earned as of the time of termination from any amounts collected in advance as of the time of termination.