Aperture utilizes performance-linked fee structures. The strategies employed charge a fee competitive with that of passive ETFs in the same category when performance is at or below its stated benchmark. As outperformance is generated, each strategy is charged a performance-linked fee of 30% on returns generated in excess of the stated benchmark.
Aperture is a response to the proliferation 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 Alliance Bernstein and Co-Head of Investment Management at Goldman Sachs, and by Generali, one of the largest insurance companies in the world1. Generali will contribute up to $4BN in investment capital to the individual strategies on the Aperture platform which are intended to create better, fairer outcomes for investors.
Aperture’s investment teams receive modest base salaries by industry2 standards, and stand to earn most of their compensation from performance-linked fees. Our investment team can receive up to 35% of the performance-linked fees due to Aperture on realised outperformance, or 10.5% of total outperformance.
1. Source: Generali. Total premium income exceeding EUR 68 billion in 2017 (present in 50 countries). Generali’s total AUM was approx. €500 billion at the end of June 2018.
2. We compared our typical investment team professional’s base compensation to the salaries of people with the titles “Chief Investment Officer” and “Senior Portfolio Manager” in the Greater London, United Kingdom area using LinkedIn Salary, which bases its estimates on information voluntarily provided by members and employers as of 15/08/18.
*Important information: Investments involve risks. Past performance is not a reliable indicator of future performance and can be misleading. There can be no assurance that an investment objective will be achieved or that there will be a return on capital. You may not get back the amount initially invested. Before taking any investment decision, please always read the associated legal documents.
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Produce outperformance by aligning investors with their clients.*
To redefine the revenue model of the asset management industry by providing outperformance at a fair price.*
* Investments involve risks. Past performance is not a reliable indicator of future performance. There can be no assurance that an investment objective will be achieved or that there will be a return on capital. You may not get back the amount initially invested.
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 assessment 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 investors. 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 realised outperformance generated from the Aperture model that drive our earnings potential. We charge fees similar to comparable passive products when strategies perform at or below their stated benchmarks, and only charge increased fees based on returns that exceed such stated benchmarks. Our investment teams aim to generate consistent performance, not to take excess short-term risk. They limit the assets in their strategies because they are paid to perform; we will never incentivise our investment teams 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 investment teams 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.