Fee and Commissions
Asset management consists of Performance Periods.
Performance periods are annually based . These periods can vary due to investor preferences. The investor can start to benefit from private portfolio management at the begining of a term as well as in the middle of a term. The investor can also leave the private portfolio management system without paying any exit commision at all.
In private portfolio management system, Management Fees are charged at the end of the months on the basis of the amount being managed.
Performance Fee is based on the over – performance of the portfolio. If the performance of the Portfolio is above the benchmark performance , a fee is calculated based on the over performance. In private portfolio management, Performance Fee is determined on the basis of the benchmark chosen.
How to calculate the performance fee? (For example performance fee is 20%)
| Start | Earnings | The end of the performance period Net Value (*) |
|
| Asset Value | 1,500,000 | %13 | 1,695,000 |
| Benchmark Asset Value |
1,500,000 | %10 | 1,650,000 |
| Difference | %3 | 45,000 |
| Performance Fee | %20 | 9,000 |