True Potential has launched a new fund range with a "unique" fee charging mechanism based on a share of growth generated annually.
The funds will have an ongoing charge figure of 0.6 per cent.
The share of growth fee will be set at 10 per cent of the increase in value generated over a 12-month period, including a high-water mark set annually.
The five funds will be managed by True Potential's in-house investment management team and use a mixture of passive investments from HSBC and active funds from BMO Global Asset Management.
Mark Henderson, senior partner at True Potential, said: "This asymmetrical fee arrangement aligning the investment manager with the client has been a long-held aspiration for us.
"Simply put, if we do not see growth in the year we do not charge a share of growth fee.
"This is a unique arrangement in the market and demonstrates our commitment to innovation and providing clients with true value for money."
The high-water mark will be calculated annually and based on the higher of the price at the start of the fund accounting year and the price at the end of the accounting year, which is 30 April.
True Potential has been looking to create funds where the cost varies depending on performance - meaning investors pay less if the funds return less - for several years.
After the FCA expressed concern that investors would not understand the investment vehicles, True Potential said it was still looking for a way to make this idea work.
But in the meantime it focused on launching a range of active funds charging 0.6 per cent.
The new funds will be available through the financial advisers who use True Potential's technology and investments as well as direct-to-consumer service True Potential Investor.
Last month True Potential published its annual results, which showed profits rose by 61 per cent from £15m to £24m during 2017.
Meanwhile assets on True Potential's investment platform rose by 40 per cent and now stand at almost £7bn.
Simon Torry, a chartered financial planner with SRC Financial Services, said: "I don't particularly like performance-related fees. I think they can affect advisers' decisions and clients don't know at the outset what they are going to be charged.
"I wonder whether these things are a little bit of a gimmick because I would have thought the objective of the fund manager is to provide good performance. They shouldn't need a financial incentive to do so."