Compensation Structure
Wooji Capital Compensation Structure
The compensation structure for Wooji Capital is designed to align the interests of our investment team with our clients. It is based on a combination of a management fee and a performance fee. Below is a detailed breakdown:
Management Fee
A management fee of 1% per annum is charged on the total assets under management (AUM). This fee is typically calculated and deducted quarterly (0.25% per quarter) based on the value of the portfolio at the end of each quarter.
The management fee is used to cover operational expenses including but not limited to research, salaries, office expenses, administrative and legal costs, and other overheads.
Performance Fee
In addition to the management fee, we charge a performance fee of 10%. This fee is calculated based on the net profits generated for the clients. The performance fee serves as an incentive for our team to ensure the funds perform optimally.
The performance fee is subject to a “high-water mark” principle. This means we only charge the performance fee on new profits. If in any given period the fund’s value falls, we do not collect a performance fee until the fund’s value returns to its previous peak.
To ensure alignment of interests, performance fees are typically calculated and charged annually. They are only charged on the net new profits earned by the fund during that year.
In summary, Wooji Capital’s compensation structure ensures that the majority of our earnings come from making our clients’ portfolios profitable. We believe this structure aligns our interests with those of our clients, and incentivizes our team to strive for superior performance.
