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Marketing Strategies : The Management And Performance Fees

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Marketing Strategies • Pricing The management and performance fees (2 and 20%, respectively) are the standards for the fund industry. However, the following fee structure can motivate clients to increase their investments: • Fund Promoters Fund Promoters are a good alternative for starting investment funds as they work on commissions. They are paid between 15% and 30% of the revenue generated by clients’ they acquired. • Capital Introduction Programs Capital Introduction Programs are one of the strategic advantages that our third party service providers will bring. These service providers have the channels to promote the fund to new investors. This service is uncompensated as they will benefit from the symbiotic relationship with the “Investment Company”. • Educational Programs Production of educational material is an excellent, cost-effective tool for increasing the fund’s awareness. The Investment Manager can publish branded material on a website or send a branded quarterly newsletter addressing the most recent financial events. Educational Programs are an outstanding way to show that the manager is knowledgeable and improve the “Investment Company” reputation. • Other Considerations o “Word of Mouth” is one of the most powerful tools for promoting a fund. o Experienced investors prefer Investment Companies that invest in their fund, therefore, is important that the “Investment Company” reinvests revenue in the fund. o The more AUM that a fund has, the more attractive

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