incentive fee

(redirected from Performance Based Fee)

Incentive fee

Compensation paid to commodities trading advisers or to any practitioner who achieves above-average returns. Sometimes called performance fee.

Incentive Fee

A fee paid to an asset manager or other investment adviser whose investment decisions perform particularly well. When an asset manager makes money for clients, he/she also makes money for the company for which he/she works. These companies offer incentive fees in order to encourage wise (and profitable) investments. Incentive fees usually come out of the portfolios that do well, rather than out of the company's general funds. They are also called performance fees. See also: Bonus, Manager Universe (Benchmark.)

incentive fee

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The Department administered a contract fee reduction for fiscal year 2013 pursuant to the Performance Based Fee clause under contract number DE-AC02-76SF00515 between the Department and Stanford.
In addition to advising IATA on all legal matters, Eversheds will offer a tailored pricing model, with tiered blended rates for each region, an innovative performance based fee element and project management provisions covering all 158 countries.
Tier One Capital is also among the first in the industry to offer clients the option of a performance based fee for investment management.
The new performance based fee underscores the team's ability to provide investors exposure to large cap stocks--the market's most efficient sector--through a fund which has historically demonstrated an ability to capture excess return as well," said Rich Gershen, Executive Managing Director, Business Management Strategy.
In addition, Parkway is eligible for a performance based fee at the end of the fund's life that will be achieved after OPERS and Parkway have achieved an annual cumulative preferred return of 10%.
The project is fully funded by the Inter-American Development Bank (IDB) and includes performance based fees, which will be paid only if contract targets are achieved.
Contrast that to TNP's performance based fees where TNP would not be paid asset management fees until funds from operations of the company exceed certain thresholds.
Each Underlying Fund/Pool will pay management fees, brokerage commissions, operating expenses and performance based fees to each manager it retains.

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