Learning outcomes

At the end of this course participants will be able to:

• Describe what is meant by Gross Asset Value and calculate a basic performance fee.

• Calculate a performance fee in a period after a fee has crystallized and calculate a performance fee incorporating a hurdle rate.

• Discuss why the correct accounting and allocation of performance fees amongst investors is important.

• Calculate and allocate performance fees using the Series of Shares method.

• Calculate equalization credits and convert an equalization credit balance to shares.

• Calculate an additional performance fee*; and convert an additional performance fee to a redemption of shares.

• Describe how equalization credit and additional performance fee balances can change over time; and describe what happens upon redemption under the equalization credit method.

Who is the course for?

• Fund accountants, trustees, auditors.

• Investor services teams will also benefit.

Course Content (Summary)

• Introduction to performance fees

• High water marks

• Hurdles

• What’s the problem with performance fees

• Equalization credits

• Additional performance fees

• Accounting for performance fees

• More challenges

• Other methods – series of shares

Trainer Profile