Transcend Private Client, a financial planning firm, has launched Transcend Direct, which has a pay-for-performance fee structure that’s offered to all clients.

The fee is 0.25%, which covers the base cost of administering a family of funds. The firm earns income only after outperforming its industry benchmark’s return.

When funds do not perform better than the market, clients will pay fees similar to traditional ETFs, notes the firm. When funds outperform, a performance fee is charged that is equal to 20% of the performance of the fund above its industry benchmark.