incentive fee

(redirected from Performance-Based 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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Adjusted net revenues of $626 million were flat compared to the third quarter of 2014, as lower base and performance-based fees and higher investment losses were offset by higher Bernstein Research revenues.
The policy provides specific guidance to investment managers and staff regarding the preferred structure of fulcrum fees (fees centered on a target, or "fulcrum," performance level, which are increased or decreased for better or worse performance) and performance fees (additional, performance-based fees paid when an investment manager achieves an investment return that beats a specified benchmark).
LWM strongly believes in performance-based fees with no minimum investment period, no lock-in period and no penalty for early-exit, thus founding the core values of the company on a client-centric approach.
When asked which pricing model they would prefer for On Demand solutions, most recipients (24%) answered Don't Know, with the remainder very much split between flat fee payments, usage-based charging, traditional up-front license fees and performance-based fees.
In any event, performance-based fees are no panacea.
RELATED ARTICLE: A few words about performance-based fees.
Why did we decide to introduce performance-based fees at GTE?
The performance-based fees paid to the Trading Advisors may create an incentive for the Trading Advisors to make investments that are riskier or more speculative than those they might have made in the absence of such performance-based fees.
The software and service NIA provides have minimal costs associated with them, and NIA will earn performance-based fees in assisting our clients across all 50 states, as they navigate the complexities inherent to health insurance choices, and provide them with the best choices so they can have access to the best solutions to suit their individual needs.
Sequentially, adjusted net revenues were down 3%, driven by lower performance-based fees and Bernstein Research revenues, partly offset by slight investment gains compared to investment losses in the prior quarter and higher base fees.
Healthways achieved 92 percent of performance-based fees related to clinical improvement.

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