When you invest through a Custom Loans portfolio or manually in individual loans, there are no fees involved. However, investing with a Core Loans portfolio is subject to an annual portfolio management fee of 0.39%. Please note that the Legacy portfolios, such as High Yield and Conservative, are exempt from this fee; it applies only to Core Loans portfolios.
How the Core Loans Fee is Calculated
The 0.39% fee is based on your Core Loans portfolio’s daily balance and is charged monthly. The balance is assessed at the end of each day, and the fee is calculated accordingly.
Example Calculation:
If your Core Loans portfolio maintains a steady balance of €1,000 throughout the month, the monthly fee would be:
- Daily Fee: €1,000 x 0.39% / 365 days = €0.0107 per day
- Monthly Fee: €0.0107 x 30 days = €0.32
This results in a total annual fee of approximately €3.90.
Important Note on New Investments
The fee applies only to investments made via the Core Loans portfolio starting from October 7th. Investments executed before this date are not subject to the fee.