Understanding Strategy Fee Options

When managing a PAMM account, it’s important to understand the two main types of fees associated with investment strategies: Performance Fee and Management Fee. 

 Performance Fee 

• Definition: A reward for the achieved results, always expressed as a percentage (%). 
• Calculation Principle: Each strategy is evaluated based on the High Watermark principle (the highest capital value reached). 
• Payment: The fee is distributed at the end of the calculation period. 
• Purpose: This parameter determines the commission amount payable to the manager and agent on behalf of the investor. 
• Manager’s Role: The percentage for the manager is specified in the Manager’s Fee field and is charged from investment accounts. 

 Management Fee 

• Definition: A fee for account management, set as a percentage (%) by the manager. 
• Payment: This fee is deducted from the investor’s balance and paid at the end of the calculation period. 
• Frequency: The calculation period can be monthly or yearly, depending on the manager’s choice. 

 Key Takeaways 

• Performance Fee = reward for results, based on High Watermark. 
• Management Fee = fixed commission for managing the account. 
• Both fees are calculated and paid at the end of the chosen period.