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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.
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