Configure the management fee calculation settings
The management fee can be calculated as one of the following:
The annual percentage of the subscribed investment account’s balance or equity at the moment of fee payment, which is paid periodically (daily, weekly, or monthly):
Management fee = Fee%/100 * Number of active days/Year * Account balance (or equity)
The percentage of the subscribed investment account’s balance or equity at the moment of fee payment, which is calculated for a selected period (daily, monthly, or weekly):
Management fee = Fee%/100 * Number of active days/Period * Account balance (or equity)
In the settings described below, you can select if you want to use balance or equity for the calculations.
In the formulas:
Fee% is the management fee percentage specified in a fee plan.
Number of active days is the number of days an investor has been subscribed to a master account or the number of days passed since the last payment.
Year is always considered to be 365 days for calculation purposes.
Period is the payment period specified in the fee plan. Possible values:
Daily – the fee is charged every day. The period duration is 1 day.
Weekly – the fee is charged every Monday. The period duration is 7 days.
Monthly – the fee is charged on the first day of each month. For calculation purposes, the period duration is always considered to be 30 days.
Account balance (or equity) is the subscribed investment account’s balance or equity at the moment of fee payment.
In the procedure described below, you can select if you want to use balance or equity for the calculations.
Select the management fee calculation settings:
Go to Investment Platform and expand the required platform instance.
Expand Settings, and select Fees Settings.
Go to Management Fee.
In the Calculation Formula dropdown, select either of the two options:
Based on Equity – to use the equity value of a subscribed investment account for calculations
Based on Balance – to use the balance value of a subscribed investment account for calculations
In the Period for percentage calculation dropdown, select either of the two options:
% / year – to calculate the management fee as the annual percentage
% / period – to calculate the management fee as the percentage for a selected period
Click Save to apply the changes.
Example 1
Suppose that the management fee is configured to be calculated as the annual percentage, based on the subscribed investment accounts’ balances:
Management fee = Fee%/100 * Number of active days/Year * Account balance
In the fee plan for a master account, the management fee is set to 15 percent annually, which must be paid daily. An investor subscribed to the master account on April, 15. The next daily management fee is charged on April, 16.
Suppose that the investment account’s balance is 3000 USD at the moment of fee payment on April, 16. In this case, the management fee amount is calculated as follows:
Fee% = 0.15
Number of active days = 1 day
Year = 365 days
Account balance = 3000 USD
0.15 * 1/365 * 3000 = 1.23 USD
Example 2
Suppose that the management fee is configured to be calculated as the percentage for a selected period, based on the subscribed investment accounts’ balances:
Management fee = Fee%/100 * Number of active days/Period * Account balance
In the fee plan for a master account, the management fee is set to 2% monthly. An investor subscribed to the master account on April, 15. The next monthly management fee is charged on May, 1.
Suppose that the investment account’s balance is 3000 USD at the moment of fee payment on May, 1. In this case, the management fee amount is calculated as follows:
Fee% = 0.02
Number of active days = 30 - 15 = 15 days
Period = 30 days
Account balance = 3000 USD
0.02 * 15/30 * 3000 = 30 USD
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