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TriDelta innovates with new optional fee structure

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Introducing TriDelta Partnership Fees – No Gain, No Pain

At TriDelta we pride ourselves on proactively responding to market trends and also client feedback. We have had a few clients say; “I lost money, how come you made money?” when market performance was poor in bad market years.  To date, this is just the way investment management fees are charged. TriDelta Financial has now decided to deal with this concern head on.

TriDelta Financial (tridelta.ca) and its Investment Counselling arm, TriDelta Investment Counsel (trideltainvestments.ca) will offer all clients with $500,000 or more of investment assets and a risk profile ranging from Balanced to Growth (minimum of 50% Equity and/or Alternative Investment asset mix to qualify), two options for fees.  One is traditional while the other is a new innovation in the Canadian market.

The Partnership Fee is effectively – if you lose money over a year, your investment management fees will be returned to your account.  Even if you have low returns (from 0% to under 3%) TriDelta will provide a partial refund of your management fee.  On the other hand if you have strong returns, starting at 7%, you will pay a performance bonus.

The message is clear.  If you do well, we do well.  If your returns are low, we do not do well either.  It aligns the interests of TriDelta Financial with our clients in a way that has simply not been found in the Canadian investment world.

Basics of our Partnership Fee program:

Based on Rate of Return on a Household Portfolio over a year, after traditional fees are charged:

  • If return is less than 0%, there is a refund of all traditional fees.
  • If return is between 0.00% and 2.99%, there is a refund of 0.5%.
  • If return is between 3.00% and 6.99%, the traditional fee applies.
  • If return is between 7.00% and 10.99%, there would be a 1% partnership fee.
  • If return is between 11.00% and 14.99%, there would be a 2% partnership fee.
  • If return is 15%+, there would be a 3% partnership fee.

The launch date on this TriDelta initiative is scheduled for Jan 1st 2017.

To participate in the Partnership Fee program, there is a 0.2% annual administrative fee charged.  This fee covers the administrative costs of the program, and is not considered part of ‘traditional fees’.

As you will appreciate this fee structure will only appeal to certain investors, but the important point is that we will offer this alternative subject to certain restrictions.

If you’re interested in exploring this further, please contact your financial advisor or if you’re not currently a client send a request to tedr@tridelta.ca and we will have a Wealth Advisor contact you to schedule a meeting.

Ted Rechtshaffen
Written By:
Ted Rechtshaffen, MBA, CFP
President and CEO
tedr@tridelta.ca
(416) 733-3292 x 221
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