The Securities and Exchange Commission (SEC), the US financial regulator, has approved the first ever “negative fee” fund, which will pay investors for depositing their money. New York-based Salt Financial has waived its 0.29 per cent fee and will contribute 0.05 per cent to the fund instead meaning an investor will receive $5 (£3.86) for every $10,000 put into the new fund. Read more: UK savers could lose out a combined £100m a year by not saving Investors in the Salt Low Tru Beta US Market ETF will benefit from the fee waiver agreement until the fund reaches $100m of assets. In a filing to the SEC the company said: “The adviser has contractually agreed to waive the fund’s full unitary management fee of 0.29 per cent of the fund’s average daily net assets on the first $100m in net assets until at least 30 April 2020.” It added that it would “contribute to the fund’s assets an amount equal to an annual rate of 0.05 per cent of the funds average daily net assets on the first $100m in net assets". Read more: City 'must change everything' to improve diversity, says Helena Morrissey Salt Financial’s founder and chief investment officer Tony Barchetto said: “In the quest for outperformance, we aim to supply sophisticated investors with the advanced tools to measure, enhance and build their optimal portfolios.”
The SEC has given regulatory approval for an exchange-traded fund that will initially pay investors for holding it. Salt Financial will waive the 29 basis point fee on its Salt Low Tru Beta US Market ETF while contributing an amount equal to 0.05% of the fund's assets, meaning investors will receive $ 5 for every $ 5 invested. In a filing with the SEC , the New York -based firm said it will waive the fee on the first 5 of assets in the fund until daily . The fund is the first "negative fee" ETF product to win SEC approval.