The current pricing can be found here.

**If you opened a portfolio before 28.09.2023 and you have not yet converted your portfolio to the new monthly fee, the pricing model below will apply to each of your portfolios.**

Our pricing model has two components:

🌱 **A fixed monthly fee of €3.90. ***There is no monthly fee until your portfolio value reaches €1000.*

🌱 **A shared success fee, applied on your portfolio end date. ***If we don’t exceed the gain target, we charge no fee on your gains.*

## 🌱 What’s the monthly fee?

Our **€3.90 monthly fee** covers all expenses that occur in the process of investing your money into sustainability oriented instruments. You never have to pay any additional transaction costs.

For €3.90 a month we are:

🍃 building and managing your personal portfolio

🍃 covering all transaction fees to buy ETFs that match your values

🍃 keeping your funds safely in the bank

🍃 regularly screening for the best ETFs across all service providers

🍃 rebalancing your portfolio - not just to maintain risk levels but also to increase the portfolio returns on market movements.

🍃 engaging with top leaders of the biggest companies in our portfolios to push them to more positive change.

To help you get started with impact investing on Grünfin, **you don’t have to pay the monthly fee until your portfolio value **(contributions/payments + gain) **reaches €1000.**

Some investment products charge a percentage of your assets, meaning that the higher the value of your portfolio, the more you’ll pay every year. We charge a flat fee, which means that **the higher the value of your portfolio, the less you pay on a relative basis.**

## 🌱 How does the success fee work?

We apply the shared **success fee when you close your portfolio **- but only if we exceed the set target.

When you create your personal portfolio, we set an indicative portfolio value target (see below). This becomes the threshold for our success fee, meaning that **if we don’t exceed the target, we charge no fee on the actual gain**. If your actual gain exceeds the target, our success fee will be **15% of the amount above your gain target**.

You’ll see the personalised portfolio target when you create your portfolio. The targets will increase when you pay one-time payments or increase monthly payments. If you skip a payment or decide to pay less, the target will be adjusted accordingly.

Most financial institutions and banks charge a percentage of your total assets as their fee regardless of how your portfolio is doing. We designed our pricing model to depend on the performance — so **we’re always on your side**.

## 🌱 How do we set the portfolio targets?

The indicative portfolio gain target is set based on your risk selection and time period. A longer investment period and higher risk tolerance indicate a higher growth target, which means a larger proportion of stocks in your portfolio.

We base our targets on the assumption that bonds grow at 2% and stocks grow at 8% per year on average.

If we consider the S&P500 as the benchmark for the stock market and individual portfolios, we can see that the average annual return since adopting 500 stocks into the index in 1957 through 2021 is roughly 8%.

*As of February 2022, the 10-year US Treasury bond yield is 1.9% and the German Government bond is 0.2%.*

## 🌱 An example of our success fee

Let’s assume you pay €200/month over 10 years (total payments of €24,000) with the indicative gain for your portfolio set at €12,000 (equal to a 50% gain over your total invested amount).

This means €36,000 (€24,000 + €12,000) is the portfolio target and the magic number against which the success fee will be measured.

If the value of your portfolio by the end of the holding period does not exceed €36,000, you will pay no success fee.

However, if the value of your portfolio exceeds €36,000 and ends at €40,000, for example, your gain above the target is €4,000. We would then apply our success fee as 15% of that €4,000 – that’s a fee of €600 at the end of the 10-year period.

## 🌱 An example of 3,90€ fee and ongoing charges:

Grünfin applies a portfolio management fee of €3,90 per month or €46,80 per annum. This is a direct cost to your portfolio and covers the services Grünfin provides regarding portfolio management, fund selection and is inclusive of transaction fees whereas the custody (safekeeping of your assets) is free of charge. For example, assuming a €10.000 investment, this fee would equal 0,468% per annum.

The exchange-traded funds (ETFs) and/or index funds held in your portfolio have ongoing charges which are indirect costs to your portfolio. It is the manager of the fund, and not Grünfin, who applies this charge. The ongoing charge is deducted from the price of the fund unit (i.e. already included in the fund unit price) rather than paid as an outflow from your portfolio. The ongoing charges of the funds in your portfolio range between 0,07% and 0,40% per annum (you can find the exact fund rates from the particular fund Key Investor Information Document (KIID); the link found in your Portfolio Structure view) and vary on the portfolio theme and risk level you select.

For example the ongoing charges of funds (in other words, indirect costs to the portfolio): for Climate theme portfolios range between 0,14% and 0,30% depending on your chosen portfolio risk level; for Gender equality theme portfolios range between 0,14% and 0,20% depending on your chosen portfolio risk level; for Health theme portfolios range between 0,14% and 0,40% depending on your chosen portfolio risk level and for S&P 500 Planet Friendly theme portfolios range between 0,07% and 0,14% depending on your chosen portfolio risk level.

When adding Grünfin's direct portfolio management fee of €46,80 per annum (or 0,468% assuming a constant portfolio value of €10.000) and the indirect ongoing charges of the funds as indicated above you get the sum of your direct and indirect charges of your portfolio per annum.