Manage Average Net Assets for Performance Fees

You can set up performance fees with a NAV component of either Average Net Assets or User Defined, if you use external NAVs. If you select Average Net Assets as the underlying NAV component, the performance fee accruals need an underlying NAV component of average net assets available for up to a five year period.

The system calculates the average net asset amount at the end of the day in order to have the underlying NAV component available to calculate performance fees at the beginning of the next accounting date. As part of the performance fee calculation workflow, you need to execute the transfer average net assets batch event before you trigger the performance fee accrual process. You can perform the transfer manually or automatically.