Performance fees use three methodologies. You can set up a performance fee expense with Performance Fee Rule Type set to Current Period Variable Expense.
When you use this methodology, you perform the following general types of tasks:
- Set up performance fee rules.
You set Fee Approval to AutoApprove. For more information, see Manage Performance Fee Rules. - Set up performance fee expenses.
If you select a NAV Component of Average Net Assets, you can specify the Rolling Avg Net Asset Calculation option of Actual or Estimates. For more information, see Manage Performance Fee Expenses. - Add and update performance returns for funds and benchmarks.
Current Period performance fees need return data from the previous accounting date. For information, see Manage Performance and Benchmark Data. - Calculate performance fee activity at the beginning of each calculation period.
Fees for Current Period Variable Expense rule types do not need approval. For more information, see Calculate Performance Fee Activity. - Process the expense accruals.
You can run accruals manually, schedule them, and/or use Automated Event Wrapper to run them.
For a detailed example of the workflow used for this method, see Current Period Variable Expense Workflow Example.
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