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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An additional attraction for all qualified investors will be the fund's performance-based fee structure.
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;
Performance-based fee, 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.

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