incentive fee

(redirected from Performance Fees)

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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There are those who say that if managers are put on performance fees, they'll take more risks.
Certainly, if performance fees become a norm, it's going to change the way investment management firms operate their business.
We believe that performance fees are a bad business practice and constitute an ongoing threat to the survival of our company.
There are those who say you can always fire a manager, and that's the ultimate performance fee.
Our performance fee is on a rolling three-year basis, to be settled up at the end of each year.
Global Investors, the performance fees are calculated and recorded only once a year at the end of the fiscal year in accordance with the terms of the advisory agreement.
Global Investors includes management fees that are received and recorded monthly and an annual performance fee, if warranted, that would be paid in the fourth fiscal quarter that ends June 30, 2007.
Based on information released by Endeavour, for the first six months of fiscal 2007, the performance fee to date accruing to U.

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