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Charges levied against a
portfolio by the portfolio manager or a third party provider.
provides custom fee algorithms for
management and incentive fees. Management fees are typically charged as a
percentage of the AUM. Incentive fees are performance-based
with hurdle or high watermark
algorithms being most commonly used to calculate them.
A fee contract is the user-defined schedule of fees by
which Webfolio automates their calculation, in
accordance with the frequency and algorithms to be used.
To allow reusability of fee schedules, Webfolio
has a fees template concept. A template is a schedule of fees
that can be copied into a portfolio fees contract. More than
one template can be created with a unique name for different billing schedules.
After a template schedule has been copied into a contract,
the contract can then be further modified as required.
A flat fee is a monthly or yearly charge usually invoiced
on an annual basis. At each portfolio valuation, the flat fee
is accrued (or amortized) according to a methodology
associated with the fee layer contract (e.g., linear / pro
rata temporis or actuarial amortization).
Foreign Exchange activity.
An operation for a future dated exchange of currencies
contracted with a counterparty at a predetermined forward
For evaluation purposes, an unrealized gain/loss is calculated
for the Forward as the current date approaches the contracted
forward date. The forward rate used for estimation is a linear
interpolation at the valuation date of the known forward
A Free Constraint is an information level, text-only
statement that is not tested during valuation of a portfolio,
but it is shown on the executed Constraint List for that
portfolio as a failed constraint. The compliance officer can
review the constraint manually to determine if an action needs
to be taken.
Webfolio module designed to provide investment
managers with the tools needed to create and manage positions.
It is a stand-alone module, but is fully integrated with the
rest of Webfolio.
The maximum amount (AUM) set for a fund by the fund's
An investment vehicle whose holdings consist of shares in
hedge funds and/or private-equity funds. Some of these
multi-manager vehicles limit their holdings to specific
managers or investment strategies, while others are more
diversified. Investors in funds of funds have to be willing to pay
two sets of fees, one to the fund-of-funds manager and another
set of (usually higher) fees to the managers of the underlying
The high-level fund that is the base for the creation of
classes and series. Constraints, for example, may use the
fund parent to calculate a result as opposed to the actual
underlying class or series. See products, class,
In addition to a fund management style, a fund may have a
philosophy that sets the investments selected, or the method
of interaction with investors, as examples.
A constraint created for a property of a
fund, as distinct from a constraint for the portfolio's
underlying funds. For example, a property constraint could
be that a portfolio's currency must be USD.
A future constraint can be created for the properties of a
future. A Future Rate constraint can be created for properties
of a Future Rate.
Foreign exchange, with respect to foreign currency rates
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