The fee schedule of Asset Mgt-Follow SMART Service
1. Subscription Fee
- Charging Method: Collected as a one‑time fee upon initial subscription and each additional investment. Typically ranges from 0% – 1%. This fee is not included in the strategy’s asset base.
- Calculation Method: Deducted from the investment amount (e.g., if you invest USD 30,000, the subscription fee is approximately USD 297.03, and the actual amount invested in the strategy is approximately USD 29,702.97).
Formula:
Net Subscription Amount = Subscription Amount ÷ (1 + Subscription Fee Rate)
Subscription Fee = Net Subscription Amount × Subscription Fee Rate
Example:
Mr. A subscribes to a Macro Hedge Strategy with HKD 252,500 and a subscription fee of 1%. After successful authorization:
- Net Subscription Amount = HKD 250,000
- Subscription Fee Deducted = HKD 2,500
- The amount displayed in the APP is the Net Subscription Amount (HKD 250,000).
2. Management Fee
Rates vary by strategy; please refer to the trading rules for the applicable rate.
- Standard Policy: Typically 1% – 2% per annum. Accrued and frozen daily, collected monthly.
- Special Policy: For certain older strategies, management fees for the lock‑up period are collected in advance. The first fee is charged upon expiry of the lock‑up period; thereafter, it is accrued daily, frozen, and collected monthly.
Case 1:
Rate: 1% per annum
Daily Fee = Net Asset Value × 1% ÷ 365
Daily amounts are accumulated and deducted in a lump sum at the end of each month.
Case 2:
Rate: 1% per annum; Lock‑up: 30 days; Fee collected in advance.
- Subscription Date: September 15 → First deduction on October 15
- First Fee = Actual Invested Amount × 1% ÷ 365 × 30
- Second deduction will take place on October 31
3. Performance Fee
- Rules: Calculated from the date of your first subscription. Typically accrued semi‑annually (some products use monthly or quarterly cycles). Charged as 10% – 30% of the profit generated. Applied either on the scheduled accrual date or upon redemption. (Calculated separately for each customer and each strategy.)
Strategies do not support partial redemption, only full redemption. Since this service is not structured as a fund, returns from initial subscriptions and additional investments are not calculated separately; performance fees are uniformly based on the ending Net Asset Value. Any additional funds invested mid‑term are included in the total initial capital base.
Scenario 1:
Initial Investment: HKD 1,000,000 → NAV after 6 months: HKD 1,080,000
Performance Fee = HKD 80,000 × 20%
Scenario 2:
Initial Investment: HKD 1,000,000 → Additional HKD 500,000 after 3 months → Total: HKD 1,500,000 → NAV after 6 months: HKD 1,550,000
Performance Fee = HKD 50,000 × 20%
Example:
Subscription Date: March 1, 2025 (Strategy A, accrual every 6 months)
If held long‑term: Next accrual date = September 1, 2025
If redeemed early on June 17, 2025: Performance fee is automatically calculated after liquidation on the termination date.
- Core Mechanism: High‑Water Mark Principle
For details, please refer to "What is the 'High‑Water Mark' Performance Fee?"
Follow SMART’s fee structure adheres to the principle: "Fees are charged only when returns are generated for investors." All charges are fully disclosed and transparent.
How to view records:All fees (management fee, performance fee, etc.) are listed separately and clearly.Path: uSMART APP → [Trade] → [More] → [Fund Flow] → Select [Discretionary Account Services].
4. Transaction Fees
Trading of individual stocks and ETFs within a strategy incurs commissions and platform fees. Actual charges are displayed in the APP.
Note: These fees differ from the commission package applicable to your personal securities account. Commission rates and platform fees may also vary between different strategies.
