incentive 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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7 million accrual for the capital gain incentive fee under GAAP was USD 19.
The agency now accepts dry and wet palay up to 30% moisture content and provides additional incentives such as drying incentive fee, delivery fee and cooperative development incentive fee for cooperatives.
Despite significant adverse equity markets' movements in the GCC and MENA region during the last quarter of 2014, some of the company's flagship funds crossed the high watermark thresh-holds for incentive fee (carry) generating KWD0.
Despite significant adverse equity markets movements in the GCC and MENA region during the last quarter of 2014, some of the Company's flagship funds crossed the high watermark thresh-holds for incentive fee (carry) generating KD 0.
The agreement also provides for the company's continued management of the transferred collateral through December 31, 2013 for a fixed fee of $10 million annually plus reimbursement of certain costs and an incentive fee equal to a specified percentage of the excess of the equity value of the transferred collateral over a baseline valuation amount.
Some EUR2m of the price was delivered on Tuesday, while the remainder will be received by the vendor upon the receipt of the plant's incentive fee, TerniEnergia specified.
In investigating the possibility that managers with compensation tied to performance act opportunistically, we find no evidence for any of the three moral hazard risks that regulators fear: 1) funds with an incentive provision are no riskier than similar funds without it, 2) managers do not alter the risk profile of their funds according to the realized performance while approaching the incentive fee calculation date, and 3) ICs managing a portfolio of funds with similar mandates do not lower their funds' correlations to stabilize their stream of income from performance fees.
Invariably, programs should embrace an incentive fee strategy that achieves and sustains maximum contractor performance with a measurable value to the government.
OFPP issued a checklist for handling incentive fee contracts.
20) Incentive fee contacts fared better; still, half of the twenty-seven contracts reviewed failed to meet the target price, a key component of mission success.
The company would receive hourly fees and an incentive fee of 5 percent of the fair market value of any donated or purchased site.
These fees are intended to motivate excellent contractor performance in areas deemed critical to an acquisition program's success, with award fees being appropriate when contracting and program officials cannot devise objective incentive fee targets related to cost, technical performance, or schedule.