Managing Asset Management

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Middle / Back Office - Front Office - Quant - EDM - Issue Manager - Requestor

Portfolios - Products - Quotations - Operations - Compliance - Fees - Contacts - Comments - Reporting - Workflow - Synchronisation - Security

Fees in Webfolio can be categorized according to the following types:

  • Transaction-based fees
  • Position-based fees
  • Flat fees
  • Management fees
  • Incentive (performance) fees
  • Amortized fees

Because fees affect the portfolio return, it is important that they be accrued at each portfolio valuation or portfolio NAV break so that a new investor will be charged the appropriate fees. The calculation frequency (i.e., accrual frequency) is an important fee property, as are the invoicing frequency and the timing of the calculation of fee layers.

A fee contract is a customer-defined schedule of fees by which the Webfolio fees engine calculates the fees to be charged and when they are to be charged. Fee contracts are set up in the Portfolio view under the Fees tab. Webfolio calculates fees whenever an evaluation is run, either as an estimate, or in an official evaluation (typically monthly). If no fee contract is established for a portfolio, or the current contract has been temporarily disabled, no fees will be generated, apart from any fees entered manually.

Fee Contract Template:
Creating a Fee Contract for a portfolio in Webfolio is simplified by using a fee template.  A template looks exactly like a fee contract but it is not allocated to any specific portfolio. Once a template is created it can be copied to as many portfolios as required.

A template can be set up for every type of fee currently supported in the Webfolio fees engine. After creation, the system keeps it available for view in the Fees Portfolio tab. When a new fee contract is to be added to a portfolio, the user has the option of selecting an existing template to use as a starting point or creating a new fee contract from scratch. A template can be used as is, or modified to suit the portfolio’s specific needs. When completed, the template becomes the Fees Contract for that portfolio.

Manual Fees:
The fees contract does not handle all the fees that are possible, but it does handle the majority and certainly the complicated ones (incentive fees, management fees, to name but a few). The rest can be entered manually via a fees operation.

Types of fees that can be charged via a fees contract template or charged manually include:

  • Administration

  • Audit

  • Commission Incentive

  • Commission Management

  • Custody

  • Flat

  • Incentive

  • Incentive Fee Tax

  • Management

  • Management Fee Tax

  • Miscellaneous

  • Out-of-pocket

  • Professional

  • Publication

  • Retrocession

  • Retrocession Estimation

  • Revision

  • Stamp Tax

  • Transaction

  • Trust

  • Valuation

  • Withholding

Fee Payments:
Processing fee payments for both manual and automated fees is supported in Webfolio. For manual fees, an amount can be directly entered into the amount field. For automated fees, a checklist of fees due is presented. Checking off a due fee adds the amount to the amount to be paid, and marks the fee as paid in the fees list for the portfolio.

Fees list in a portfolio:
Whenever an evaluation is run for a portfolio, if a fee contract exists, the system will determine what fees need to be accrued, reversed, or added to the fees account. The evaluation shows all fee calculations so that it can be verified as required. On an invoicing date, the fees that are chargeable as of that date become due and payable. The list of fees for a portfolio shows all the fees that have been flagged by the fees engine using the portfolio’s fees contract and their current status.

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