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

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)

• 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

At the end of the course, participants can download a certificate of attendance via their House of Training customer portal.