Fulcrum Fee

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Fulcrum Fee

A fee than an investment adviser may charge a client if the return on a portfolio exceeds some agreed-upon benchmark. A fulcrum fee is one the few performance-based fees than an investment adviser may assess; one cannot charge it to small investors, only to institutional investors and high net-worth individuals.
References in periodicals archive ?
When should fulcrum fees (1) be preferred over flat fees or other performance fee structures?
Fulcrum fees are centered on a base fee that is adjusted up or down based on performance relative to a clearly defined benchmark.
With fulcrum fees, a manager who outperforms the hurdle variable receives a proportion of the positive differential, while they suffer a symmetrical deduction from the management fee in the case of underperformance.
Since then, only a handful of US managers have been brave enough to adopt fulcrum fees.
6 million of the revenue in the fourth quarter 2009 was from incentive and fulcrum fees versus none in the 2008 period.
5 million in 2008, mainly on increased fulcrum fee revenue of $14.
The policy provides specific guidance to investment managers and staff regarding the preferred structure of fulcrum fees (fees centered on a target, or "fulcrum," performance level, which are increased or decreased for better or worse performance) and performance fees (additional, performance-based fees paid when an investment manager achieves an investment return that beats a specified benchmark).
We receive incentive and fulcrum fees for certain institutional client assets as well as for preferred issues for our closed-end funds, fulcrum fees for the Gabelli Global Deal Fund (NYSE: GDL) common shares, and incentive fees for investment partnership assets.
We receive incentive and fulcrum fees for our investment partnership assets, certain institutional client assets as well as preferred issues for our closed-end funds.
We receive incentive and fulcrum fees for our investment partnership assets, certain institutional client assets as well as preferred issues for our closed-end funds and on our new closed-end fund launched in January 2007, the Gabelli Global Deal Fund.
As previously discussed in our third quarter 2005 earnings press release, fourth quarter 2005 operating profit was expected to decrease from the fourth quarter 2004 due to lower income from management fees earned on preferred shares issued by our closed-end funds and fulcrum fees from institutional accounts.