Eagle's expense processing allows you to calculate the following three types of performance fees:
- Current Period Variable Expense (PVX). The system calculates this fee ion a daily basis. Each day you input the performance and benchmark returns and the expense process determines the new daily performance fee posting.
- Prior Period Budgeted Expense (PBX). The system calculates this fee once per calculation period (monthly, quarterly, and so on) and then spreads the calculated expense over the number of days in the calculation period.
- Prior Period Estimated Budgeted Expense (PEX). This fee is similar to the Prior Period Budgeted Expense, but with two differences. You can select a NAV Comparison period for this type of fee. If the fee is set up to use average net assets of 1 year, but also has a NAV comparison period of monthly average net assets, the procedure calculates the performance fee using both NAV components and applies the fee that is of the smaller value. Also, this type of fee always calculates a true-up amount for the prior period to ensure the fee is accurate for the prior period.
You can set up performance fees only at the Total Fund level. Funds can elect to compare the performance of one share class to a benchmark, but the system always accrues the fee amount at the Total Fund level, and allocates it to all classes according to the fund's allocation methodology if the fund is a multiple class fund.
The system can calculate average net assets up to a five-year period and can calculate a prior period performance fee without posting the fee to the accounting ledger.
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