Training - UCIs Fund Accounting - Mastering the calculation and control of performance fees

How long does the training course last?

8,00 hours(s)

In which language(s) is the training course taught?

When will the next session take place?

Who is organising this training course?

Fondation créée en 2015 par la Chambre de Commerce et l’Association des Banques et Banquiers Luxembourg (ABBL), la House of Training est un organisme agréé de formation professionnelle continue qui s'engage à contribuer activement à la compétitivité et à l'attractivité du Luxembourg en développant les compétences de ceux qui font vivre son économie.

What are the aims or the skills being targeted?

By the end of this course, you will have a good understanding of:

the different methods of calculating performance fees (Models, High Water Mark, Carry Forward Loss, Hurdle Rate, Benchmark)
operational risks, crystallisation and issues relating to performance fees
the fundamental principles of performance fee equalisation methods (series, equalisation)

What does the training course cover?

Examples of prospectuses
Examples of calculations
The rationale behind the performance fee as a method of calculating (part of) the management fee
The risks associated with unfair/abusive use or miscalculation of the fee
Odyssey of the performance fee:

1. Design and controls

who wants what, how and when - The product
the different elements (Definition of the concepts of ‘hurdle rate’, ‘High water Mark’, crystallization).

2. Development and testing/controls
3. Operational life/operations and controls

calculations
(methods of) payment

4. Events in the life of the product and controls

events ((merger of share classes/sub-funds - change of jurisdiction of the UCI - changes in the calculation method (change in design - change in interpretation - change in calculation formula) etc ))
setting up procedures for change and controls
The future of performance fees/trends