DEFINITION of 'Fulcrum Fee'
An additional, performance-based fee an advisor charges a client. The advisor charges the fee when he or she achieves a return above a specified benchmark.
INVESTOPEDIA EXPLAINS 'Fulcrum Fee'
This is one of the only performance-based fees that advisors are allowed to charge clients. A couple of conditions must be met in order for an advisor to charge a fulcrum fee:
1) The returns must exceed the appropriate benchmark (and if they don't, the base fee must be reduced).
2) The only clients that can be charged are the following: registered investment companies, individuals with an account value greater than $1 million and individuals with an account value greater than $750,000 and a net worth greater than $1.5 million.
A standard against which the performance of a security, mutual ...
A broker that provides a large variety of services to its clients, ...
As defined by the Investment Advisors Act of 1940, any person ...
A service charge assessed by a broker or investment advisor in ...
An account in which a brokerage manages an investor's portfolio ...
Definition of Robo Financial Advisers