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Why do I pay a licensing fee on Motif Thematic Portfolios?

28 February 2018 in Inside Motif

From grocery shopping to buying a new car, there’s always a cost to doing business. It’s the same when it comes to investing. While some investing fees cover the costs of building and rebalancing the investment products, others cover trading costs and expenses.

But not all investing portfolios are created equal. At Motif, we assess a fee on each thematic portfolio that our investment team builds. We call this fee a “licensing fee” because each portfolio follows a proprietary methodology that scientifically selects and weights each security to align with the investment thesis and to generate performance. Each one of our thematic portfolios gives you access to our unique approach that combines data-driven insights with objective fundamental research, algorithmic portfolio design, cutting-edge technology, and analytics.  

While you can try to avoid certain fees by building a portfolio on your own, sometimes that means dealing with an unknown quantity of research and modeling behind each portfolio, which can be a tall order. To date, our team has built more than 200 thematic portfolios that make it easy for you to invest in economic, socio-political, and technological forces that are shaping the global economy, without having to do the heavy lifting.  Now, for a small fee, that’s a lot of bang for your buck.