Am I reading Quadriga's fees correctly?

[Corso482]

Charges to each Series per year (payable pro rata on a monthly basis):
1.85% Management Fee, 1% Offering Expenses, 0.15% Administrative Fees, 2% Selling Commission, 5.63% Brokerage Fee

Does this mean that you're charged 10.63% in fees per year???? :eek:

 

[Ebo]

Racing fuel is expensive in Monte Carlo!

 

[risktaker]

It's the future of investing!

 

[Corso482]

10.63% is absurd. Surely I'm mistaken!!!

 

[RAY]

The Brokerage fee would be one time, up front.

How do you think they get people to invest? That 5%+ is then split between a "broker" and his "house."

So the broker will tell his clients to invest... You should see some of the fees the brokers get on annuities and Life Insurance.

 

[jebara]

It is higher depending on the fund, and there Incentice Fee is calculated on a monthly basis and applies to any new appraeciation (if any) only.) at 25%


How does any make money, from this other then the providers.

 

[PitchBlack]

Quote from jebara:

It is higher depending on the fund, and there incentive Fee is calculated on a monthly basis and applies to any new appreciation (if any) only.) at 25%


How does any make money, from this other then the providers.

An honest fundmanager asks normally 2 kinds of fees:
-management fee: fixed % paid on the capital invested.
-incentive fee: paid on the profits made in the period. These profits are calculated on the difference between this closing period and the previous one. So you only pay on the additional profit. If a fund makes a loss, it will have to make up for the loss, only from the point where the profits exceed the level of the previous billing there can me charged a new incentive fee.

Example with monthly billing:
January: profit 12%, so charged on the 12%
February: loss 15%, so NO incentive fee
march: profit:25%; so charged on 25%-15%= 10%.

I know of funds that had to be closed down after a huge drawdown. They would have to trade for months before being able to regain the loss and be able to bill incentive fees. The structure of the fund was so heavy that expenses were higher than the management fees. The logical thing was to simply close the fund. The investors paid in fact too much fees, and were rewarded with a huge loss just before the fund was closed.

Fundmanagers can ask what they want. If the investor is so idiot to pay 25 different fees it's his own fault. You cannot blame a fund to legally rip off clients. For some funds that's the only aim they have.


Sometimes FUNmanager is a better word than FUNDmanager.
And yes, live is expensive in Monaco if you want to keep up with the neighbors.

 

[Corso482]

Quote from spike500:

If the investor is so idiot to pay 25 different fees it's his own fault. You cannot blame a fund to legally rip off clients.

To play devil's advocate, Quadriga's series B, which charges 10.63% per year in fees, has still netted about 20% per year, on average, in the last three years, and I don't know of any other Fund like Quadriga with such low minimums, so I could see how they justify their fees.

 

[Ebo]

If I am not mistaken, they are their own broker!
Many of these funds have huge expenses.
I made 39.87% in under two years invested in the "B" fund net of fees. I was extremely lucky with my timing and am happy to be out. They are in a little drawdown at the moment.