Performance Fees

A practical guide to performance fees with a particular focus on the equalization credit method. 

Single User

€49

Purchase gives you 30-day access to videos, script and online test

Multiple Users

€14*

Free Trial

Multiple Users | 365 Day Access *Assumes 8 courses for 200 users. Contact us for a quote for your organisation.

Single User Discounts

  • Purchase 2 get 10% discount
  • Purchase 3 get 15% discount
  • Purchase 4 get 20% discount
  • Purchase 5 get 25% discount
  • Purchase 6 or more get 30% discount

7 Training Videos

  • Introduction to Performance Fees (10 mins)
  • High Water Mark & Hurdles (10 mins)
  • What’s The Problem With Performance Fees? (5 mins)
  • Series of Shares Method (11 mins)
  • Equalization Credit Method - Equalization Credits (12 mins)
  • Equalization Credit Method - Additional Performance Fees (11 mins)
  • Equalization Credit Method - More Challenges (9 mins)

Details

  • Prepared By Alan Farrell
  • Duration 71 mins
  • CPD/CPE Credits 1.0
  • Contents 7 Videos | Documents | Test

Who is this For?

Participants who need to understand how performance fees are calculated, allocated and accounted for using the equalisation credit method and the series of shares method.  Participants should already be familiar with the basics of net asset valuations (NAVs) and how a fund processes subscriptions and redemptions.

Learning Outcomes

At the end of this session 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.
  • Also known as equalization debit, contingent redemption or contingent liability.

Single User

€49

Purchase gives you 30-day access to videos, script and online test

Multiple Users

€14*

Free Trial

Multiple Users | 365 Day Access *Assumes 8 courses for 200 users. Contact us for a quote for your organisation.

Single User Discounts

  • Purchase 2 get 10% discount
  • Purchase 3 get 15% discount
  • Purchase 4 get 20% discount
  • Purchase 5 get 25% discount
  • Purchase 6 or more get 30% discount