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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6% of bond funds charge performance fees, they are responsible for just 3.
All six winners received an opportunity to perform throughout the United States, sharing three years of managed concert tours and more than 300 prearranged engagements valued at more than a million dollars in combined performance fees.
In view of the substantial performance fees, the company managed to return in the black in the third quarter of 2009, executive board member Alexander Schuetz said.
The broker added that performance fees were also running ahead of its expectations and that the results would be well received following recent concerns over exposure to performance fees.
However, the group has never failed to earn a performance fee in any year and the group still looks attractively valued even after stripping out performance fees from profits.
There are those who say that if managers are put on performance fees, they'll take more risks.
Further, the company said that performance fees are payable when the total return generated by it is more than its benchmark index, the MSCI US Utilities Index, both in the quarter and cumulatively.
Cantab partners will also retain a 40% interest in future performance fees.
Lower trading and performance fees were blamed for the profit fall.
Revenue increased 9% from the first quarter 2012, reflecting growth in markets, long-dated net new business and higher performance fees.
He said, 'Islamic financial institutions need to build diversified sources of revenue, relying not only on placement and performance fees, but also on the steady stream of income generated by such unglamorous but essential activities as advisory services, asset management and providing financial services to retail clients.

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