As a regular Stoic client, we keep you regularly informed via our news update about various relevant matters that are happening at Stoic:
As of January this year, our annual management fee consists of a fixed component of € 1.210,- (including VAT), regardless of the size of the assets, and a variable portion of 0.30% (including VAT) on the assets. That is good news for clients with somewhat larger assets. We are happy to explain why.
The lower the costs, the higher your return. That is why at Stoic we are continuously looking to see whether costs can be reduced further. With the recent fee adjustment, management fees for the larger assets will (significantly) go down. We had to conclude that it was mainly the larger assets that in our view actually still paid too much, even though this was already considerably lower than with our peers. The smaller assets paid - fair is fair - actually too little. After all, we perform the same activities for every client, such as continuously monitoring the portfolio, rebalancing, reporting, etc..
That is why we have now chosen a pricing model with a fixed and a variable component. This way, costs are distributed more fairly and larger clients no longer pay too much and smaller clients no longer pay too little. The tipping point, where the new fee is lower than the previous fee, is at an invested amount of € 400.000,-. For clients with more than € 400.000,- in invested assets, the new management fee will therefore be more favorable.
What if the fee in your case turns out to be a bit more expensive?
Because of the fixed component, the new management fee does not turn out more favorable for all clients. However, naturally we respect the existing agreements and will only apply the new fee if your management fee goes down. If not, we will simply continue to apply the ‘old’ agreement for the management fee. No problem.
Door Freddy Forger