performance fee


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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.)

performance fee

A fee paid to an investment manager based on the performance of a client's portfolio, determined by a specified standard. For example, an investment manager might be paid a regular fixed fee plus an incentive fee based on the change in value of the client's portfolio. Also called incentive fee.
References in periodicals archive ?
The LRFA is the Local Radio Freedom Act , a resolution that would prohibit Congress from imposing "any new performance fee, tax, royalty, or other charge relating to the public performance of sound recordings on a local radio station for broadcasting sound recordings over the air, or on any business for the public performance of sound recordings on a local radio station broadcast over the air."
The company's gross profit will be subject to taxes and a performance fee.
There is a performance fee of 20 per cent over 1 Month EURIBOR, for both share classes.
- Incorrect performance fee of 10% of the net amount of compensation for the affected parts of the flawed execution.
The Local Radio Freedom Act (LRFA)--a bipartisan resolution that opposes "any new performance fee, tax, royalty, or other charge" on local broadcast radio stations--now has 187 cosponsors in the House and 22 in the Senate.
M2 EQUITYBITES-July 15, 2016-Macquarie Infrastructure declares no performance fee for Q2 2016 to MIMUSA
The Cayman Islands-domiciled fund will charge a 1.5 per cent management fee and will be offered in a "long-only" format with a 10 per cent performance fee, and in a hedge version that will short the MSCI World Index and charge a 20 per cent performance fee.
In a press statement, the bank said, 'The virtual freeze in lending markets made private equity realisations both difficult and limited which in turn has affected performance fee income due to the lower number of realisations and lower exit prices.
Performance fees increased $69.0 million (155.8%) to $113.3 million in 2017 from $44.3 million in 2016, primarily related to the performance fee generated in the third quarter by Invesco's Mortgage Recovery Fund.
6), is a bipartisan resolution thatopposes "any new performance fee, tax, royalty, or other charge" on local broadcast radio stations.
Performance fee: 10% above EONIA with highwater mark
Fourteen Representatives and two Senators have joined as co-sponsors of a resolution that opposes "any new performance fee, tax, royalty, or other charge" on local broadcast radio stations.

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