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Pay-for-performance (Investment)
A pay-for-performance fee structure, in relation to the investment industry, describes a management fee that is paid to a financial adviser or investment manager when their performance returns exceed those of their designated benchmark. The performance fee is generally calculated as a percentage of the investment outperformance gained. The rationale for a pay-for-performance fee is that it provides a low-cost base solution for investors and aligns their interests with investment managers who only get compensated for outstanding performance. Typically, investors pay a base fee for investment management services and performance fees are paid dependent upon the investments’ performance over a given period in relation to the industry benchmark used. With increasing attention on the cost of fees for investment services, the onset of alternative investment firms including performance-based investment management firms are increasingly on the rise. One Canadian pay-for-performance fi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Investment Management
Investment management is the professional asset management of various securities, including shareholdings, bonds, and other assets, such as real estate, to meet specified investment goals for the benefit of investors. Investors may be institutions, such as insurance companies, pension funds, corporations, charities, educational establishments, or private investors, either directly via investment contracts or, more commonly, via collective investment schemes like mutual funds, exchange-traded funds, or REITs. The term asset management is often used to refer to the management of investment funds, while the more generic term fund management may refer to all forms of institutional investment, as well as investment management for private investors. Investment managers who specialize in ''advisory'' or ''discretionary'' management on behalf of (normally wealthy) private investors may often refer to their services as money management or portfolio management within the contex ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Management Fee
In the investment advisory industry, a management fee is a periodic payment that is paid by an investment fund to the fund's investment adviser for investment and portfolio management services. Often, the fee covers not only investment advisory services, but administrative services as well. Usually, the fee is calculated as a percentage of assets under management. In manage property sector, is also used. Usually under management contract. Is used for running hotels, and restaurants. Mutual funds In a mutual fund, the management fee will include any fees payable to the fund's investment adviser or its affiliates, and administrative fees payable to the investment adviser that are not included in the "Other Expenses" category. Management fees paid to mutual funds and other registered investment companies are set forth in the advisory agreement which must be approved by the fund's board and shareholders; in general, these fees are heavily regulated under the Investment Company Act of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Adviser
A financial adviser or financial advisor is a professional who provides financial services to clients based on their financial situation. In many countries, financial advisors must complete specific training and be registered with a regulatory body in order to provide advice. In the United States, a financial adviser carries a Series 7 and Series 66 or Series 65 qualification examination. According to the U.S. Financial Industry Regulatory Authority (FINRA), qualification designations and compliance issues must be reported for public view. Details of formal compliance issues can be found on thInvestment Adviser Public Disclosure(IAPD) website and details of non-formal issues can be found oOnesta FINRA specifies the following groups who may use the term ''financial advisor:'' brokers, investment advisers, private bankers, accountants, lawyers, insurance agents and financial planners. Financial advisors need to be able to take the full picture of the client's financial sit ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Investment Manager
Investment management is the professional asset management of various securities, including shareholdings, bonds, and other assets, such as real estate, to meet specified investment goals for the benefit of investors. Investors may be institutions, such as insurance companies, pension funds, corporations, charities, educational establishments, or private investors, either directly via investment contracts or, more commonly, via collective investment schemes like mutual funds, exchange-traded funds, or REITs. The term asset management is often used to refer to the management of investment funds, while the more generic term fund management may refer to all forms of institutional investment, as well as investment management for private investors. Investment managers who specialize in ''advisory'' or ''discretionary'' management on behalf of (normally wealthy) private investors may often refer to their services as money management or portfolio management within the context ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Performance Fee
A performance fee is a fee that a client account or an investment fund may be charged by the investment manager that manages its assets. A performance fee may be calculated many ways. With respect to a separate account, it is often based on the change in net realized and unrealized gains, although in some cases, it can be based on other measures, such as net income generated. While not very common, some fund managers have attempted to link the performance fee to both upward and downward movement in a fund's gains, such as the shock absorber fee, where the fund manager gets penalised (before the investor) for adverse movement in the fund value. With respect to hedge funds and other investment funds, it is generally calculated by reference to the increase in the clientfund's net asset value (or " NAV"), which represents the value of the fund's investments. Performance fees are widely used by the investment managers of hedge funds, which typically charge a performance fee of 20 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Management Fee
In the investment advisory industry, a management fee is a periodic payment that is paid by an investment fund to the fund's investment adviser for investment and portfolio management services. Often, the fee covers not only investment advisory services, but administrative services as well. Usually, the fee is calculated as a percentage of assets under management. In manage property sector, is also used. Usually under management contract. Is used for running hotels, and restaurants. Mutual funds In a mutual fund, the management fee will include any fees payable to the fund's investment adviser or its affiliates, and administrative fees payable to the investment adviser that are not included in the "Other Expenses" category. Management fees paid to mutual funds and other registered investment companies are set forth in the advisory agreement which must be approved by the fund's board and shareholders; in general, these fees are heavily regulated under the Investment Company Act of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Investment Management
Investment management is the professional asset management of various securities, including shareholdings, bonds, and other assets, such as real estate, to meet specified investment goals for the benefit of investors. Investors may be institutions, such as insurance companies, pension funds, corporations, charities, educational establishments, or private investors, either directly via investment contracts or, more commonly, via collective investment schemes like mutual funds, exchange-traded funds, or REITs. The term asset management is often used to refer to the management of investment funds, while the more generic term fund management may refer to all forms of institutional investment, as well as investment management for private investors. Investment managers who specialize in ''advisory'' or ''discretionary'' management on behalf of (normally wealthy) private investors may often refer to their services as money management or portfolio management within the contex ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Sharpe Ratio
In finance, the Sharpe ratio (also known as the Sharpe index, the Sharpe measure, and the reward-to-variability ratio) measures the performance of an investment such as a security or portfolio compared to a risk-free asset, after adjusting for its risk. It is defined as the difference between the returns of the investment and the risk-free return, divided by the standard deviation of the investment returns. It represents the additional amount of return that an investor receives per unit of increase in risk. It was named after William F. Sharpe, who developed it in 1966. Definition Since its revision by the original author, William Sharpe, in 1994, the ''ex-ante'' Sharpe ratio is defined as: : S_a = \frac = \frac, where R_a is the asset return, R_b is the risk-free return (such as a U.S. Treasury security). E_a-R_b/math> is the expected value of the excess of the asset return over the benchmark return, and is the standard deviation of the asset excess return. The ''ex-p ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
The Journal Of Finance
''The Journal of Finance'' is a peer-reviewed academic journal published by Wiley-Blackwell on behalf of the American Finance Association. It was established in 1946 and is considered to be one of the premier finance journals. The editor-in-chief is Antoinette Schoar. According to the ''Journal Citation Reports'', the journal has a 2020 impact factor of 7.544. It is listed as one of the 50 journals used by the ''Financial Times'' to compile its business-school research ranking and ''Bloomberg Businessweek''s Top 20 Journals. Editors The editorial board The editorial board is a group of experts, usually at a publication, who dictate the tone and direction the publication's editorial policy will take. Mass media At a newspaper, the editorial board usually consists of the editorial page editor, ... of the journal of finance consists of the editor, co-editors and associate editors. The executive editor is Antoinette Schoar ( MIT), the first female in the position. The following ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Active Management
Active management (also called ''active investing'') is an approach to investing. In an actively managed portfolio of investments, the investor selects the investments that make up the portfolio. Active management is often compared to passive management or index investing. The average actively managed mutual fund in the US underperforms the average passive mutual fund. As a consequence, mainstream economic advice is to invest in passive mutual funds. Approach Active investors aim to generate additional returns by buying and selling investments advantageously. They look for investments where the market price differs from the underlying value and will buy investments when the market price is too low and sell investments when the market price is too high. Active investors use various techniques to identify mispriced investments. Two common techniques are: * Fundamental analysis. This approach analyzes the characteristics of individual investments to evaluate their risk and p ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Performance-related Pay
Performance-related pay or pay for performance, not to be confused with performance-related pay rise, is a salary or wages paid system based on positioning the individual, or team, on their pay band according to how well they perform. Car salesmen or production line workers, for example, may be paid in this way, or through commission. Many employers use this standards-based system for evaluating employees and for setting salaries. Standards-based methods have been in ''de facto'' use for centuries among commission-based sales staff: they receive a higher salary for selling more, and low performers do not earn enough to make keeping the job worthwhile even if they manage to keep the job. In effect, the salary would be re-evaluated up, or down, periodically (usually annually) based on the performance of the individual or team. The reward is the salary: with an expectation to be high on the pay band for high performance and low on the band for low performance. In comparison, the per ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Performance Fee
A performance fee is a fee that a client account or an investment fund may be charged by the investment manager that manages its assets. A performance fee may be calculated many ways. With respect to a separate account, it is often based on the change in net realized and unrealized gains, although in some cases, it can be based on other measures, such as net income generated. While not very common, some fund managers have attempted to link the performance fee to both upward and downward movement in a fund's gains, such as the shock absorber fee, where the fund manager gets penalised (before the investor) for adverse movement in the fund value. With respect to hedge funds and other investment funds, it is generally calculated by reference to the increase in the clientfund's net asset value (or " NAV"), which represents the value of the fund's investments. Performance fees are widely used by the investment managers of hedge funds, which typically charge a performance fee of 20 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |