Annual Fixed $ Fee Type
To charge a fixed fee for Portfolio management, regardless of the funds under advice within the Portfolio, create a Fee Schedule and set Fee Type to 'Annual Fixed Dollar' and enter the dollar amount for the year in the Fee Amount.
In the instance that the fee is generated for a full calendar month, the Annual Fixed Dollar fee will be converted into a monthly fee. For any period other than a month, it will be calculated according to the monthly rate for any whole months plus the equivalent daily rate for any additional days.
((annual amount/12)* number of calendar months) + (annual amount/365)* number of additional days).
Annual Fixed % Fee Type
To charge a flat percentage for Portfolio management, create a Fee Schedule and select the 'Annual Fixed Percentage' as the Fee Type and enter the agreed percentage in the Fee Amount.
The calculations for the Annual Fixed Percentage fee are calculated based on the number of days in the reporting period, regardless of whether this also happens to be a calendar month.
Funds Under Advice will sum all included holding accounts, including those with a negative balance.
Holding Accounts with negative balances can be excluded from Funds Under Advice if required in the Exclusions configurations
Example: Investment Assets = $1m, Loan = -$300k, Funds Under Advise = $700k.
Example: Annual Fixed Percentage fee = 0.5%
| Report Period | Funds under Advice | Fee Calculation | Fee Amount |
|---|---|---|---|
| 20 days | $2m | 20 x daily amount | $547.95 |
| 1 month (31 days) | $2m | 31 x daily amount | $849.32 |
| 3 months & 2 days (94 days) | $2m | 94 x daily amount | $2,575.34 |
Annual Tiered % Fee Type
To charge a tiered percentage fee based on the funds under advice, create a Fee Schedule with a Fee Type of 'Annual Tiered Percentage' and enter the relevant values in the tiers (up to 10 tiers are supported).
As with the other fee types based on the funds under advice, the funds under advice are either as of the last day of the report or selected as average for the reporting period. (Average for the reporting period is the sum of the total market value of all investments for each day during the period divided by the total number of days in the period.)
Funds Under Advice will sum all included holding accounts, including those with a negative balance.
Example: Investment Assets = $1m, Loan = -$300k, Funds Under Advise = $700k.
Holding Accounts with negative balances can be excluded from Funds Under Advice if required in the Exclusions configurations.
How is Funds Under Advice (FUA) is calculated?
FUA (Funds Under Advice) is calculated based on the average market value over the period you are applying the fee for.
For example, let's look at a portfolio where a fee is being calculated over four days. The average is worked out by calculating the market value of each investment over the period and dividing by the number of days the fee is being applied.
| 28-Jan | 29-Jan | 30-Jan | 31-Jan | Average | |
|---|---|---|---|---|---|
| BHP | 33,050.00 | 33,740.00 | 34,600.00 | 34,830.00 | 34,055.00 |
| NAB | 40,623.08 | 39,834.92 | 39,818.50 | 39,178.12 | 39,863.66 |
| TLS | 25,160.00 | 27,115.00 | 27,115.00 | 26,435.00 | 26,456.25 |
| Total Average F.U.A | 100,374.91 |