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.

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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On the contrary, ETFs are investment vehicles that can carry low, high or even performance-based fees.
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).
Performance-based fees prove very difficult to define in these situations, Ternoey notes.
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.
Over the life of the site contract, LITCO replaced the base fee with performance-based fees and revenue generated from technology transfer royalties brought to the marketplace, as well as profits from successful industrial partnerships.
Prohibit contingency or performance-based fees and the use of auditing services as a marketing tool.
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.

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