Just as you invest to make money, TMI is in business for the same purpose. As such we operate on a 3/30 fee-only structure. Simply stated, it means that we charge 3 percent (3.0%) of total asset value as a management fee and 30 percent (30.0%) of profits earned.
Whilst our fees are slightly above market averages for similar services, we do not charge accounting or other operational fees that are reasonable and that are a normal cost of managing your investment and which are customary expenses with other investment firms. The only exception to this rule are trading fees[1].
Our management fee of 3.0% of your total account balance is accrued annually and is paid to TMI regardless of performance at the start of each new fiscal year.
The profits earned percentage or PEP of 30.0% is accrued monthly and is paid to TMI at the end of each month. Pep is calculated on the positive difference of the monthly starting account balance minus the ending account balance for that same month.
In the event of a minus difference in your account balance, you will not be accessed the profits earned percentage or PEP.
Hypothetical #1:
Profits Earned:
Your Initial Investment: $100000
3.0% management fee: $3000 ($100000 X 3%)
Trading Balance: $97000
Profit 1st Month: $10800
30.0% Profits Earned Fee: $3240 ($10800 x 30%) (paid to TMI)
Your profit: $7560 ($10800 – $3240)
Your new account balance 1st month: $104560 ($97000 + $7560)
*example excludes trading fees.
Hypothetical #2:
No Profits Earned:
Your Initial Investment: $100000
3.0% management fee: $3000 ($100000 X 3%)
Trading Balance: $97000
Profit 1st Month: -$1800
30.0% Profits Earned Fee: $0 (paid to TMI)
Your profit: -$1800
Your new account balance 1st month: $95200 ($97000 – $1800)
*example excludes trading fees.
[1] NOTE:
Trading fees, those fees charged by third-party financial institutions to trade your investments, will be deducted from your balance on a per trade basis.
A detailed summary of fees accrued will be provided monthly to all investors, including a monthly performance summary of your investments.
For more information about investing with TMI, our fee structure or any other questions you may have pertaining our firm, please contact us.