Aperture utilizes performance-linked fee structures. Each strategy is charged a fee competitive with that of passive ETFs in the same category when performance is at or below its stated benchmark. If outperformance is generated, each strategy is charged a performance-linked fee of 30% on returns generated in excess of that fund’s stated benchmark, up to a cap.
Aperture is a response to the widespread use of fixed fees in active asset management, which reward managers regardless of whether they produce outperformance for their clients.
Aperture was founded in 2018 by Peter Kraus, former CEO of AllianceBernstein and Co-Head of Investment Management at Goldman Sachs, and by Generali, one of the largest insurance companies in the world. Generali will contribute up to $4BN in investment capital for individual strategies utilizing performance-linked fees intended to create better, fairer outcomes for investors.
Aperture’s investment teams receive modest base salaries by industry1 standards, and stand to earn most of their compensation from performance-linked fees. Investment teams can receive up to 35% of the firm’s performance-linked fees paid on realized outperformance, or 10.5% of total outperformance.
1. We compared our typical portfolio manager and investment team professional’s base compensation to the salaries of people with the titles “Chief Investment Officer” and “Senior Portfolio Manager” respectively in the Greater London, United Kingdom area using LinkedIn Salary, which bases its estimates on information voluntarily provided by members and employers as of 8/15/18.
Produce outperformance by aligning asset managers with their clients.
To redefine the revenue model of the asset management industry by providing alpha at a fair price to every investor who wants it.
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Aperture is changing the way investors interact with portfolio managers and investment teams. We use digital platforms and direct investor engagement to make our thinking transparent because we believe that investors and potential investors should know the people managing their money. Follow our firm and our investment teams on your favorite social platform.
These are the qualities that matter most to us. They guide our actions and reflect our behavior with each other and with clients.
We believe that the path to outperformance is a uniquely human endeavor. It requires humility, patience, self-awareness and focus – all qualities we model in our investment process, in the operation of our firm, and in our interactions with clients. Finding alpha is hard, and it relies on the distinct perspectives of active managers. We are entrepreneurs who question our assumptions, even in the face of success, and make changes when we believe they will generate better results. While we leverage all the tools, data and technologies at our disposal, we fundamentally believe that it is our humanity which ultimately creates unique insights.
Our fee and compensation structures are intentionally designed to align our interests with those of our clients. It is our performance-linked fees paid on realized outperformance that drive our earnings potential. We charge fees similar to comparable passive products when funds perform at or below their stated benchmarks, and only charge increased fees based on returns that exceed such stated benchmarks. Our managers are incented to generate consistent performance, not to take excess short-term risk. They limit their assets under management because they are paid to perform; we will never incentivise our managers to be asset-gatherers.
We make it our responsibility to let our clients know how we think, how we work and how we compensate ourselves. Our managers regularly engage with clients in-person and online, unambiguously sharing their opinions and perspectives. Their compensation structures are fully visible to clients and future clients alike. The ways we openly engage and share information with investors make explicit our sole focus on their performance.