FEE STRUCTURE

Value-added investment management

The purpose of Eau Rouge is to add value for clients to the returns generally available in the market. This we have done extremely well, after fees, since inception. When choosing an investment manager and assessing the fees charged, the true value of the service should always form part of an investor’s deliberations. We are gratified to have been able to so handsomely compensate our clients in the past, and, of course, this remains our goal for the future. A full discussion of the methodology used to calculate the value-add shown in the chart below is included here. Investors are reminded that the value of investments can go up or down, and the full amount invested may not be recovered. Past performance is not necessarily indicative of future performance, and returns are never guaranteed.

Progressive value of Eau Rouge SA Equity portfolio

Our fee structure is transparent and highly competitive with others in the market. We are committed to sustaining a business capable of delivering service excellence to clients for the long term, and to that end we have built Eau Rouge into a robust business with rigorous systems and processes which monitor and mitigate operational and investment risk, and a resource base of highly skilled people. Staying at the forefront demands continual investment. This requires a fee structure which is fair to both the client and to Eau Rouge. We do not charge a performance fee. We do not believe investment managers should require an incentive fee to do their job well, but instead we align our interests with yours by investing our own money as we do yours.

Our fee structure

Value of managed account	Annual fee*
Up to R1 000 000	1.50% of the value
R1 000 000 to R5 000 000	R15 000 plus 1.25% on excess over R1 000 000
R5 000 000 to R15 000 000	R65 000 plus 1.00% on excess over R5 000 000
R15 000 000 to R25 000 000	R165 000 plus 0.90% on excess over R15 000 000
R25 000 000 to R50 000 000	R255 000 plus 0.80% on excess over R25 000 000
R50 000 000 to R100 000 000	R455 000 plus 0.70% on excess over R50 000 000
R100 000 000 to R250 000 000	R805 000 plus 0.65% on excess over R100 000 000
R250 000 000 to R500 000 000	R1 780 000 plus 0.60% on excess over R250 000 000
Above R500 000 000	R3 280 000 plus 0.55% on excess over R500 000 000
Minimum annual fee R12 000*

*Excluding VAT

Our fee structure is rigorously tested against the more important competitors in the market to ensure that it remains fair to the client and, of course, Eau Rouge. The aim is to ensure that this translates, at the very least, into a superior value proposition for the client over the longer term.