Fees
unique flexibility, your choices, and good value
Fees
Unique flexibility, options and good value
The fee schedule for Endeavour has been designed to be good value compared to the Fund’s peer group but also uniquely flexible – to give investors the choice of what kind of fee they pay.
There are no entry or exit fees for Endeavour.
| Shareclass | Investment Mgt + | Admin = | Ongoing Charges (OCF) |
|---|---|---|---|
| IF (to be renamed A) acc/dist | 0.75% any investment | 0.27% | 1.02% |
| SP acc only | 0.40% any investment | 0.27% | 0.67% |
| PF acc only | 0.00% | 0.27% | Performance variable |
There are three main share classes available to investors. The OCF fee for each share class is the Ongoing Charges Figure and is comprised of investment management and administration cost. The administration cost for each share class is the same and is expected to reduce as the fund grows in size each year.
Shareclasses and Flexibility
The IF share, to be renamed A, is available to any type of investor for the smallest available investment sum, with both gross distributed income and accumulation units available. A variety of regular savings facilities can be used including ISAs and minimum regular savings of £50 can be made.
The SP is accumulation and available to all forms of pension investor and pension savings, charitable foundations and endowment funds.
The PF is a performance fee option in case some investors might want to use it to create a more flexible fee rate, paying the same administration costs as everyone else but instead of a management fee, they pay one fifth of the outperformance of the Fund versus the benchmark. (See below for more detail).
(The RF, or newly named Z share, is the most expensive share class and is now reserved for Tellsons Founders.)
Performance Fee
Performance fee share classes can represent good value for sceptical investors who want be able to pay less in the event the fund underperforms its expectations. They can also be unpopular because they can be too complex and because many investors do not like it if they think they are paying extra for strong performance. We offer the PF as an option in case some investors prefer the chance of paying less when performance disappoints and don’t mind paying more when performance is successful. In any case this performance fee is designed to cost approximately the same as the fixed fee if Endeavour delivers it’s targeted return over the cycle, not more! Because Endeavour is a multi-asset total return fund carrying less risk than equity-only funds, it is the stability of returns that is more important for the Fund than outright performance so investors should feel reassured the managers will be less incentivised to take undue risk purely to earn excess performance fees.
In the PF share class, investors pay their share of administration charges like other investors but instead of the investment management fee, one fifth of the performance generated above the Performance Benchmark is payable, subject to a high water mark of the previous level of performance already paid out. The benchmark is the average of:
1) the total return of an index of UK Government Gilts with maturities less than five years;
2) rolling 5 year Consumer Price Inflation.
This Benchmark has been designed to reflect as close as possible what we believe to be the equivalent of risklessness over the long-term: riskless government return in the form of short-dated Gilts combined with rates of inflation over preceding five year periods. Over most of the post World War II period, this benchmark has also been remarkably consistent at an average of around 3.5%. Any investment strategy such as the Fund which takes the risks of corporate bond and equity investment should generate a greater return than riskless government bonds and at the same time protect from inflation over the long-term.
Please see the Prospectus for a more detailed explanation of the Performance Fee and how it might work in different scenarios.
The UCITS regulations require a dilution charge to be levied on large inward and outward investor flows from the Fund to protect other ongoing investors’ returns, so the ACD of the fund may implement the dilution levy in certain market conditions at their discretion.