Performance fees on supplier instrument

  • The performance fee calculation is only applicable to Unitised Instruments
  • Performance fees report can be generated Per instrument or In bulk
    • Per instrument: Navigate to the instrument -> More Actions -> Performance fees
    • In bulk: Instruments -> All instruments -> More Actions -> Performance fee report. NOTE: Only if an instrument has been set as “Is performance fee active” will the instrument be included in the Bulk report.

 

Navigate to the instrument and select the FEES button then scroll down to the Performance fees section

The following values needs to be set for the performance fee calculation:

    • Is performance fee active, if set the instrument will be included in the Bulk Performance Fees report (Instruments -> All instruments -> More Actions -> Performance fee report)
    • Performance fee start date
      • This is the date where the system will start calculating the Performance fee from
      • If the period is set to i.e. 24 months the “Performance fee start date” should be one month prior to this date
      • Refer to the Price index start value and Benchmark index start value as these need to be captured for the Performance fee start date from the manual calculation sheets
    • Performance fee net accrual reset date, on this date the Net Accrual will start accumulating from zero. The Payments for the next month after this date will also be taken into account for the Net Accrual.
    • Performance period description, this is a free text field to describe the Performance fee i.e. 12.5% Above benchmark cap over rolling 2-year, capped at 1% p.a.
    • Performance periods, can be set to 12, 24 or 36 months
    • Cumulative performance fee period, can be set to 12 or 24 months and used to calculating the ROLLING CUMULATIVE PERFORMANCE FEE %
    • Price index start value and Benchmark index start value, refer to the manual calculation sheets on the Performance fee start date less one month. If this is a new performance calculation set both values to 100.

Performance Fees

  • Hurdle rates, set the Hurdle rate for the Performance fees calculation
  • Performance fee sharing rates, set the Performance fee sharing rate for the Performance fees calculation
  • Annual performance fee caps (incl VAT), set the Annual performance fee caps (incl VAT) for the Performance fees calculation

 

NOTE: Multiple values can be set per date for the following values:

  • Performance periods
  • Hurdle rates
  • Performance fee sharing rates
  • Annual performance fee caps (incl VAT)

 

The following values are also impacting the performance fee calculation:

  • Price, prices need to be captured for the period selected for the Performance Fees, refer to Instrument Card -> More Actions -> Prices
  • Benchmark Compositions, A Benchmark has to be added to the Collective Investment Scheme, navigate to the Collective Investment Scheme -> More Actions -> Benchmark Compositions
  • Benchmark, A Benchmark price / rate need to be captured for the period selected for the Performance Fees, navigate to Instruments (Main Menu) -> Benchmarks

 

Last Updated on 12 months ago by Debra Hart