incentive fee

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Incentive fee

Compensation paid to commodities trading advisers or to any practitioner who achieves above-average returns. Sometimes called performance fee.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.)
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

incentive fee

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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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.

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