SaxoSelect Trading Strategy Fees
Fees Explained
Our Trading Strategies are subject to three fees or costs. Trading costs, a service fee, and a performance fee.
- Trading costs are incurred as expected when positions are opened/closed. Our Trading Strategies trade on institutional-level rates with compressed costs, and vary depending on the specific instruments traded.
- The service fee is applicable across all our managed portfolios. The service fee for our Trading Strategies is 0.5% p.a.
- A performance fee is payable to the manager if the quarter-end portfolio value surpasses the previously set highest value at the end of a quarter (“high watermark”). This way the investor and the manager’s interests are aligned. The performance fee is 20%.
For more detailed information visit the dedicated SaxoSelect performance fees page
Schedule of fees
Trading costs are applied directly and immediately in the client’s account.
The service fee is calculated daily but debited at quarter-end.
Performance fee is calculated at quarter-end, after trading costs and the service fee have been applied to the account balance. If the portfolio value (not including any additional deposits/withdrawals) has increased compared to the previous high watermark then the performance fee is payable on the growth.
If the portfolio value has not surpassed the high watermark no performance fee is payable.
Impact of costs on returns
The performance figures we quote are net of trading costs, but exclude the impact of service and performance fees - these fees are unique to each investor depending on portfolio value, date of commencement and any additional funds deposited/withdrawn.
The illustrations below aim to help clients understand and calculate the effect of the Trading Strategy fees on returns in different scenarios.
Note: these are for illustrative purposes only. To reasonably display how service and performance fees are accrued these illustrations are based on a simplified view of returns, assuming a constant increase or decrease in account value. Performance is likely to be more nuanced and experience both positive and negative returns across any given period.
USD 50,000 initial investment. Headline 5% return. 3.9% net of all costs.
Q1 Start Value | USD 50,000 |
Q1 End Value (incl. trading costs) | USD 52,499 |
Q1 End Performance (before service & performance fees) | 5.0% |
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Q1 Service Fee | USD 63 |
Acc. Value less Service | USD 52,436 |
Q1 Performance Fee | USD 487 |
Acc. Value less Performance | USD 51,949 |
Performance after fees | 3.9% |
USD 50,000 initial investment. Headline 10% return. 7.9% net of all costs.
Q1 Start Value | USD 50,000 |
Q1 End Value (incl. trading costs) | USD 55,001 |
Q1 End Performance (before service & performance fees) | 10.0% |
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Q1 Service Fee | USD 65 |
Acc. Value less Service | USD 54,936 |
Q1 Performance Fee | USD 987 |
Acc. Value less Performance | USD 53,949 |
Performance after fees | 7.9% |
USD 50,000 initial investment. Headline 20% return. 15.9% net of all costs.
Q1 Start Value | USD 50,000 |
Q1 End Value (incl. trading costs) | USD 60,001 |
Q1 End Performance (before service & performance fees) | 20.0% |
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Q1 Service Fee | USD 68 |
Acc. Value less Service | USD 59,933 |
Q1 Performance Fee | USD 1,987 |
Acc. Value less Performance | USD 57,946 |
Performance after fees | 15.9% |
USD 50,000 initial investment. Headline -5% return. -5.1% net of all costs.
Q1 Start Value | USD 50,000 |
Q1 End Value (incl. trading costs) | USD 47,500 |
Q1 End Performance (before service & performance fees) | -5.0% |
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Q1 Service Fee | USD 60 |
Acc. Value less Service | USD 47,440 |
Q1 Performance Fee | N/A |
Acc. Value less Performance | USD 47,440 |
Performance after fees | -5.1% |