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

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