A useful fee comparison explains both the rate and how it is applied. The same headline percentage can produce different cash flows depending on the class, calculation base, timing and distribution rules.
Fund documents may include management regulations, a prospectus, subscription terms, a private placement memorandum or partnership agreement, depending on the vehicle. Identify the documents governing the exact investment rather than assuming every Portuguese fund uses an LPA.
Identify the investor class
Record the class, currency, minimum subscription, subscription window and payment terms. Different classes may have different fees, distribution policies and access conditions. Compare the documented terms rather than making assumptions based on whether investors are institutional or pursuing Golden Visa.
Subscription fees: deducted or charged on top
Consider a hypothetical EUR 100,000 subscription with a 3% entry charge:
| Assumption | Initial cash outflow | Amount after entry charge |
|---|---|---|
| Charge deducted from EUR 100,000 | EUR 100,000 | EUR 97,000 |
| Charge paid on top | EUR 103,000 | EUR 100,000 |
This example describes cash mechanics, not the amount recognised for an immigration application. Confirm that separately using the actual documentation and legal guidance.
Management and operating costs
A management fee may be calculated on NAV, commitments, invested capital or another contractual base. Record the base, frequency, accrual convention and any change during the fund's life.
Also identify depositary, administration, audit, transaction and other disclosed costs. NAV performance reflects costs included in the NAV calculation; avoid deducting them a second time when interpreting historical returns.
Performance fees and carry
Compare the mechanism as well as the percentage:
- The base to which the fee applies.
- Any hurdle or preferred return and its accrual start date.
- Simple or compound calculations where relevant.
- High-water marks, catch-up and crystallisation rules where applicable.
- Whether the mechanism is fund-wide or linked to individual realisations.
A hurdle determines the order or conditions of profit allocation. It does not guarantee an investment return. See capital distributions.
Investment periods and cash flows
For closed-ended strategies, distinguish fundraising, investment, realisation and extension periods. For open-ended funds, distinguish the recommended holding period from the dealing schedule.
A subscription funded upfront and one funded through staged capital calls have different cash-flow timing. Compare dated investor-level cash flows after the charges applicable to the class. This explains differences in IRR without implying different investment quality.
Distributions and liquidity
Identify income distributions, return of capital, reinvestment provisions, redemption conditions and transfer arrangements. For Golden Visa research, legal and tax treatment should be confirmed for the actual transaction; labels such as dividend or capital reduction do not settle every question.
Put the information together
The fee and distribution simulator models how assumptions interact. Its outputs are illustrations, not forecasts.
Portugal Funds connects source documents, fee structures, investor classes and portfolio information for independent comparison. Our research consultancy can explain documents and analytical findings without providing personal investment recommendations.