Pricing /Financial Proposal – Investment Management Fees
IAMZ introduced a sliding scale of fees in 2009 which are as follows:
- $0-$500,000 1.20%
- $500,000- $1,500,000 1.10%
- $1,500,000 to $3,000,000 0.95%
- $3,000,000 to $10,000,000 0.90%
- Over $10 million 0.80%
The 2022 IPEC guideline to cap pension fund fees at 0.80% p.a however remains supreme. This fee structure fell in line with the already existing fee levels for our clients, even when utilizing the sliding scale. Resultantly and in line with the directive, we propose a flat 0.80% fee structure for the whole fund across all asset classes. This is easier to administer making it easier for the fund work out fund costs quickly, without having to factor in all the small details that can add up over time. In addition, the price stays the same regardless of the scope or complexity of the service and there is no hidden cost/no surprises on the bill.
IAMZ does not offer a performance fee alternative but is willing to consider any suggestions from clients. With no ability to hedge in Zimbabwe and with limited asset classes available, IAMZ does not believe that performance fees will add value to clients and may prove expensive.
