Here are just a few commonly asked questions from people interested in investing in our flagship fund.
If you have any other questions then feel free to contact us on the form at the bottom of the website.
How do the fees work?
Fees work in 2 ways.
1) A Performance fee (incurred quarterly) - This is 20% of any net profits made. If there are no profits, then Augustus King doesn't get a fee. It’s sometimes called an incentive fee, and is designed traditionally for the money manager to not just milk large fixed fees from investors based on their assets under management . But rather to encourage the production of actual raw profits for their investors!
Let’s say Month 1 the fund returns £700 profit to your account, Month 2 the fund is down -£200 on your account, and Month 3 you’re up £1,000.
You would have made £1,500 over the quarter. 20% of that would be paid as your performance fee to Augustus King, totalling £300. This means you’d carry £1,200 profit over to the next month’s account balance.
2) A Management fee (incurred quarterly) - this is 0.5% of your average assets under management over that quarter. This fee only applies if your account balance is in profit overall.
So if you have an average of £20,000 under management for the past 3 months, then you’d pay £100 for that quarter’s trading. In essence, it amounts to 2% over the year.
Both these fees are redistributed from your account to Augustus King automatically and will be reflected on your statements so that you can see the breakdown of everything.
This means you don’t have to arrange for different payments every quarter, it’s all taken care of seamlessly.
Is there a minimum deposit required?
No, this fund was set up originally to primarily trade the funds of family and close friends. As such, the emphasis is not on squeezing large deposits out of investors for the gain of the fund, but rather to provide some risk-mitigating diversification to the savings of those I care about.
But if you really want an answer then I’d say the largest amount that you can currently imagine yourself losing half of and still not losing any sleep over it. But if you think you would start to sweat then lower the amount. It’s important that you can comfortably withstand drawdowns on your account and stick with the fund for as long as possible, as this is where the large gains come from. Even the world-renowned Warren Buffet regularly incurs 50% losing streaks twice a decade or more, but if you were to look at his track record I’m sure you’d agree it’s enviable.
Yours will be too if you can stomach the drawdowns and stick with the programme.
Am I able to withdraw my money whenever I like?
Of course, although two things to be aware of are that you gain significantly more money when you leave your funds compounding in your account, than if you make regular withdrawals. Additionally, at times I may require up to 1 month’s notice to be able to trade out of open positions in which your funds might be actively invested.
Is now a good time to invest in this fund?
Honestly, if I knew the answer to that then I’d be an oracle who could predict the markets. The truth is, nobody can responsibly claim to be able to do that, and so in lieu of a satisfying response, my most sincere advice is that the best time to invest in this fund is when it’s experiencing an extended drawdown. The second best time (if not currently in a drawdown)...is now!
This is because the one thing I’m most confident about is that trend following is the most sustainable and consistently profitable system that beats the markets in the long term.
Got More Questions?
Please feel free to send me your questions on the form beneath, I'll endeavor to answer them for you ASAP.
Thanks for your interest in the fund.