Costs
When investing, you will encounter costs that have an impact on your return. Investing in funds involves both direct and indirect costs, the same goes here at the Circle Fund investment fund.
Below is an overview of the costs per participation class.
Management fee
0.125% per month.
The management fee is 1.5% per annum and is per month afterwards (0.125%) charged.
Performance fee
15% per year.
The performance fee is 15% per year and is per year afterwards charged (see explanation).
Management fee
0.1% per month.
The management fee is 1.2% per year and is per month afterwards (0.1%) charged.
Performance fee
10% per year.
The performance fee is 15% per year and is per year afterwards charged (see explanation).
Explanation
We use a perpetual high watermark (HWM) and a Hurdle Rate (MARR) of 10% when calculating performance fees.
Perpetual High Watermark (HWM)
The perpetual high watermark prevents you from paying compensation for the services you previously paid for. Indeed, any negative return on your investment after payment of a performance fee must first be fully compensated before a performance fee is charged again.
10% Hurdle Rate (MARR)
A hurdle rate (or minimum acceptable rate of return) is a threshold of return that must be exceeded before we, as manager of the Circle Fund, can receive our performance fee. We have a 10% hurdle rate, which means that you do not have to pay a performance fee for the first 10% return per year.
The favorable combination of a low cost structure and the “hurdle rate” ensures that your return with us can be significantly higher than with funds without a “hurdle rate”.
Costs
When you invest, you will have to deal with costs. These costs affect your return. Investing in funds involves two types of costs (direct and indirect). This also applies to investments in the Circle Fund.
From €100,000
The direct costs for participation class A (EUR) are:
The management fee is 1.5% per annum and is per month afterwards (0.125%) charged.
The performance fee is 15% per annum and is per year afterwards charged.
We use a perpetual high-watermark and a hurdle rate of 10%.
From €500,000 or $500,000
The direct costs for participation class I (EUR & USD) are:
The management fee is 1.2% per annum and is per month afterwards (0.10%) charged.
The performance fee is 10% per annum and is per year afterwards charged.
We use a perpetual high-watermark and a hurdle rate of 10%.
Indirect costs
In addition to direct costs, as an investor, you also have to deal with indirect costs. These are the costs you pay in addition to your direct costs. This includes product/fund costs and transaction/spread costs. These costs are borne by the fund.
.png)
.png)
.png){kind=logo}
.png)
.png)
.png)
Want to know more about Circle Fund?
We would love to get to know you without obligation.