3.38.5 Series Method of Performance Fee Calculation

This topic provides information on series method of performance fee calculation details.

In the series method of performance fee calculation, a new series is created for a fund each time there are new subscribers for each pricing period during the performance fee period. These series are maintained separately until the time they are consolidated with other series belonging to the same fund.

The consolidation for each of the subsequent series issued usually happens at the end of every accounting period. For the consolidation to happen, an incentive fee needs to be paid for each of the series, including the series in which it is being merged, which could be done quarterly, half-yearly, or annually.

Note:

You need to manually create new fund series for each fund pricing period and also handle the consolidation of the fund series operationally. The system does not provide any automated tasks to achieve this.