Guiding Principles behind
Innovative Fee Structure
Fees should be appropriate for all:
The Avenue Total Return Equity Portfolio has a management
fee of 1.5% of assets under management.
Note: For Equity Portfolios under $500,000, the management
is 2.0% of assets under management.
Fees should be reduced if the investment
does not make you money:
If our client’s do not achieve an absolute return over the calendar year, the management fee is cut in half or reduced from 1.5% to 0.75%.
Fees should reward an investment manager
does make you money:
If our client’s annual return exceeds 10% over the calendar
in addition to the management fee payable, Avenue Investment
Management also will receive a performance fee equal to 10% of
the excess return for that calendar year. Note however,
that this performance fee is also capped to a maximum of 1%.