Fee Transparency
Aligned Fees. Honest Advice.
We believe you should understand exactly what you pay, what it covers, and why it costs what it does. Two models. One standard: your interests first.
The Fee Philosophy
Two ways to pay us.
Both put you first.
A transparent 1.25% for comprehensive wealth management, or 0% management fee with a 20% performance fee charged only on gains above your chosen hurdle. You choose the alignment that fits — we publish both, in full.
Wealth Management
Comprehensive financial planning and portfolio management for clients focused on building net worth, retirement planning, and long-term security.
$125 per $10,000 annually
Industry average: 1.02% (2024 Advisory HQ RIA Fee Study)
What's Included
- Full discretionary portfolio management
- Comprehensive retirement roadmapping
- Ongoing financial planning and strategy
- Quarterly portfolio reviews
- Tax-aware investment strategies
Available to all clients
Performance Partnership
True alignment of interests -- we do not charge a management fee. We only earn when your account grows. For qualified clients.
On new profits only · High-water mark applies
Hurdle rate: 10% annual fixed rate or S&P 500 Total Return Index
$0 cost in down or flat markets
What's Included
- Full discretionary portfolio management
- Zero management fee in all market conditions
- Performance fee only on gains above hurdle rate and high-water mark
- Client-selected hurdle: 10% fixed or S&P 500
- $0 cost in down or flat markets
- Direct portfolio manager access
Available to qualified clients per SEC Rule 205-3
Our Commitment
What You Will Never Be Charged
Full Disclosure
Total Cost of Ownership
Fund expense ratios vary by investment vehicle. We favor low-cost index funds and ETFs where appropriate. Custodian platform fees may apply to certain account types.
No lock-up periods or termination penalties. Fees are pro-rated and refunded for any prepaid but unearned portion upon termination.
How Advisors Get Paid Matters
The financial industry uses many compensation labels. Understanding the differences matters because compensation structures create incentives -- and incentives drive behavior.
As a fiduciary, we are legally required to act in your best interest. Our advisory compensation comes directly from you through transparent, published fee schedules. We have no incentive to recommend one product over another, to trade more frequently, or to move you into higher-cost investments.
Fiduciary (Us)
Paid by clients. No revenue sharing. No product sales incentives.
Fee-Based
Charges fees AND earns commissions on some products.
Commission-Only
Paid entirely by product companies. Maximum conflicts.
Interactive Tool
Compare the Models
Adjust the portfolio size and expected return to see how each fee model performs over a 10-year period. Try the preset scenarios to see how different market conditions affect the comparison.
Fee Comparison Calculator
See how different fee models affect your portfolio over 10 years.
Area chart comparing portfolio values over 10 years. Starting at $1,000,000 with 7% annual return and 10% hurdle rate. After 10 years: Wealth Management model ends at $1,734,638, Performance Partnership ends at $1,967,151. Total fees over 10 years: Wealth Management $173,524, Performance Partnership $0.
| Year | AUM Fee | AUM Net Value | Perf Fee | Perf Net Value | High-Water Mark |
|---|---|---|---|---|---|
| 1 | $13,375 | $1,056,625 | $0 | $1,070,000 | $1,070,000 |
| 2 | $14,132 | $1,116,456 | $0 | $1,144,900 | $1,144,900 |
| 3 | $14,933 | $1,179,676 | $0 | $1,225,043 | $1,225,043 |
| 4 | $15,778 | $1,246,475 | $0 | $1,310,796 | $1,310,796 |
| 5 | $16,672 | $1,317,057 | $0 | $1,402,552 | $1,402,552 |
| 6 | $17,616 | $1,391,635 | $0 | $1,500,730 | $1,500,730 |
| 7 | $18,613 | $1,470,436 | $0 | $1,605,781 | $1,605,781 |
| 8 | $19,667 | $1,553,700 | $0 | $1,718,186 | $1,718,186 |
| 9 | $20,781 | $1,641,678 | $0 | $1,838,459 | $1,838,459 |
| 10 | $21,957 | $1,734,638 | $0 | $1,967,151 | $1,967,151 |
| Total Fees | $173,524 | $0 |
Fee difference between models: $173,524 lower with Performance Partnership over 10 years
Hypothetical illustration only. Assumes constant annual return with no withdrawals or contributions. Actual results will vary. Past performance is not indicative of future results. Performance Partnership model uses 20% performance fee on gains exceeding the 10% hurdle rate, with high-water mark protection; Wealth Management model uses 1.25% AUM fee.
Common Questions
Frequently Asked Questions
What is a fiduciary?
A fiduciary is legally and ethically required to act in your best interest at all times. As a registered investment advisor, we are held to this standard. This means we must put your interests ahead of our own and disclose any potential conflicts of interest.
How is your fee collected?
Fees are deducted directly from your investment account. Wealth Management fees are billed quarterly in arrears based on average daily account value. Performance Partnership fees are billed annually in arrears. Interactive Brokers mails monthly statements directly to you showing all activity, including any fees charged.
Do you earn commissions on products you recommend?
No. We do not earn commissions from the investment products we recommend, receive referral fees, or accept revenue sharing from fund companies. Our advisory compensation comes directly from the fees you pay us. Your account does incur small brokerage commissions paid to Interactive Brokers for trade execution, but those go to the custodian, not to us.
What is the minimum to work with you?
We do not have a strict minimum. Fit matters more than account size. We need to be aligned philosophically on investment approach and expectations. We are not the right fit for everyone, and that is acceptable. If we are not the right match, we will refer you to other advisors we know and trust.
How do you differ from a broker?
Brokers are held to a suitability standard, meaning they must recommend products that are suitable for you but not necessarily in your best interest. We are held to a fiduciary standard, which is a higher bar. Additionally, brokers typically earn commissions on transactions, which can create conflicts of interest. We earn fees only from you.
Where are my assets held?
We use Interactive Brokers as our primary custodians. Your assets are held in a segregated account in your name. We have Limited Power of Attorney to manage the investments, but we never take custody of the assets themselves.
What is a high-water mark and how does it protect me?
The high-water mark is the highest portfolio value ever achieved. We only charge a performance fee when your portfolio exceeds this mark. If your portfolio declines, we must first recover all losses before any performance fee applies. You never pay fees on the same dollar of gains twice. Combined with the hurdle rate, this means fees are charged only on gains that exceed both the prior peak and the chosen hurdle rate.
What is the hurdle rate and what options do I have?
At account opening, Performance Partnership clients select one of two hurdle rates: a 10% annual fixed rate or the S&P 500 Total Return Index. Client selects one hurdle rate at account opening. Performance fee applies only to gains exceeding the chosen hurdle. This ensures we earn a performance fee only when we deliver returns above a meaningful threshold.
What costs exist beyond your advisory fee?
In addition to our advisory fee, your portfolio may incur fund expense ratios (0.03% - 0.20%) and custodian platform fees. Fraction-of-a-penny commissions at IBKR Pro (typically $0.35-$1.00 per trade). We favor direct holdings and direct indexing, occasionally using low-cost index funds and ETFs, to minimize these underlying costs.
What does it mean that you are a fiduciary?
As a registered investment advisor, we are legally and ethically required to act in your best interest at all times. This is a higher standard than the suitability standard that brokers follow. It means we must disclose all conflicts of interest, provide advice that serves your goals, and never put our interests ahead of yours. Our advisory compensation comes directly from you through transparent, published fee schedules.
Can I terminate the advisory relationship at any time?
No lock-up periods or termination penalties. Fees are pro-rated and refunded for any prepaid but unearned portion upon termination.
Who is eligible for the Performance Partnership model?
The Performance Partnership is available to qualified clients as defined by SEC Rule 205-3. Generally, this requires a net worth of $2.2 million (excluding primary residence) or $1.1 million in assets under management with our firm. These thresholds were last updated August 2021 and are next reviewed July 2026.
Where can I review your regulatory disclosures?
Our Form ADV Parts 1 and 2 are available on our website at /form-adv and through the SEC Investment Adviser Public Disclosure (IAPD) database. These documents detail our services, fees, conflicts of interest, and disciplinary history. We encourage all prospective and current clients to review them.
Important Disclosures
Performance-based fee arrangements may create an incentive for an investment adviser to make investments that are riskier or more speculative than would be the case in the absence of a performance fee. The high-water mark provision is designed to mitigate, but does not eliminate, this potential conflict.
The Performance Partnership model includes a hurdle rate selected by the client at account opening. Client selects one hurdle rate at account opening. Performance fee applies only to gains exceeding the chosen hurdle. Available options: 10% annual fixed rate or S&P 500 Total Return Index. The benchmark-linked hurdle reflects the historical average of the S&P 500 Total Return Index ( 10.26% annualized). Past index performance does not guarantee future results.
The Performance Partnership model is available to qualified clients as defined by SEC Rule 205-3. Thresholds: net worth of $2.2 million (excluding primary residence) or $1.1 million in assets under management. Last updated August 2021; next review July 2026.
Bancroft Booth Capital Advisors is a State-Registered Investment Adviser with the Texas State Securities Board. Registration does not imply a certain level of skill or training.
Not sure which model fits? Let us help.
Schedule a no-obligation conversation. We will explain both models in the context of your specific situation.