An additional attraction for all qualified investors will be the fund's performance-based fee
An additional attraction for all qualified investors will be the Fund's performance-based fee
structure, which, in line with Shariah practices, makes sure that the management makes money only if investors do.
There are also times when a given manager may not be able to offer a performance-based fee
in its least costly delivery mechanism; sometimes a fixed fee in a commingled fund offers the lowest costs, and there may be other administrative factors to consider (such as the cost and risks of establishing international swap dealer agreements) in a separate account structure in order to obtain a performance fee.
respondents to Fulbright & Jaworski's survey, 60 percent of them rated the performance-based fee
to be the most effective AFA.
An impressive new cash management system, the wealth management industry's first performance-based fee
and the concept of private funding circles are just three such innovations that stand to significantly set the new team apart.
And they can make better than billable hour profits by proposing performance-based fee
structures and leading these engagements with clients.
A performance-based fee
structure is an incentive for the fund manager to perform.
those with a performance-based fee
arrangement with the manager), to increase the manager's fees or demonstrate superior investment performance;
, tied to the profitability of the client's invested assets.
Some early evidence shows that portfolios with performance-based fee
structures perform better than transactions with fixed-rate servicing contracts.
On a limited number of its accounts, the Company is entitled to receive a performance-based fee
depending on the absolute performance in the account over a specified time period or in some cases by the out-performance in the account relative to a chosen benchmark.
Automated performance-based fee
calculations: The equalization method automates equalization of performance fee accruals, secures compliance with legal requirements, and treats investors fairly.