At Zignaly, investors don’t pay upfront management fees. Instead, we use a Profit Sharing model. The Wealth Managers only earn when you earn.
This model already gives you an edge over traditional investment services, but there’s another layer of protection that often goes unnoticed: the cost advantage of Z-Indexes. Let’s unpack what that means.
The Hidden Cost of Moving Between Services
In traditional Profit Sharing services, when you decide to leave one service, maybe because performance isn’t what you expected, you take your funds out and join a new one.
But here’s the catch:
When you leave a service that’s currently in losses, you lose your High Water Mark (HWM).
That means the next Wealth Manager starts fresh, as if those losses never happened. So when your new service recovers those same losses, you’ll still pay a success fee, even though you’re just getting back to where you were before. Essentially, you’re paying twice for the same profits.
How Z-Indexes Solve This
With Z-Indexes, you don’t have to worry about that. If a service within a Z-Index underperforms, it can be removed or replaced — but your investment stays within the same Z-Index structure.
And the best part?
You keep your current High Water Mark!
That means you never “reset” your performance history. You’re only ever charged success fees when your portfolio exceeds your previous peak value — not when it merely recovers from a dip.
Why This Matters
Let’s make it practical:
You invest $1,000.
It grows to $1,300 — this becomes your High Water Mark.
The market turns, and your balance drops to $1,100.
If you switched to another Wealth Manager outside the Z-Index, your new HWM would reset to $1,100.
When you grow back to $1,300, you’d pay success fees again on those recovered $200 — even though they’re not “new” profits.
But in a Z-Index, you’d keep your $1,300 HWM.
So no fees would apply until your balance surpasses that level again.
Result: You save money, keep your performance history, and maintain full alignment between your growth and your Wealth Managers’ rewards.
In Short
The Z-Indexes model ensures you get the cost advantage of consistent performance tracking — no matter how strategies within the index evolve.
You keep your High Water Mark.
You avoid paying twice on recovered profits.
You stay protected and aligned for long-term growth.
Because at Zignaly, your success is quite literally the only way we earn.