Wednesday, January 5, 2011

Performance Fee Index

The performance fee index is the benchmark which is used for calculating fund performance fees, if any. For example a fund may have a target or benchmark of the risk free return, and that their performance fee is calculated as a proportion e.g. 10% of the difference between the total return minus the risk free return. The details of the performance fee calculation will be in the fund's prospectus or other official documentation.

Synonyms: Performance fee benchmark

Comments?
If you have any further questions or would like to add to this fund management term, then please submit your thoughts below.

No comments:

Post a Comment