The rhymeSIGHT Management Fees module provides a comprehensive set of functions to manage the process of calculating and processing management fees for services undertaken by asset managers.
rhymeSIGHT Management Fees provides a number of methods on which a fee can be calculated including the use of the portfolio market value as at a particular date or an average portfolio market value over a pre-determined period. Other ‘fee basis’ methods include transactional fees and fees for providing safe keeping (i.e. custody) services. For those who provide insurance-based products it is possible to base fee calculations upon premiums and front-end fees are also catered for.
Adjustable fee tariffs can be maintained and associated with a ‘fee type’ which can be associated with an individual portfolio or group of portfolios. Exclusions can be created to exclude specific instruments (such as a director’s holdings in his own company) or instrument types. Should you wish to apply a series of different fee types at the same time, these can be grouped into what is known as a ‘fee type group’. These groups can also be applied to single or multiple portfolios.
The facility to allow portfolios to be grouped can be used to mirror the product ranges on offer or such arrangements as might exist in family offices or those adopted by institutional fund managers.
The trigger for calculating fees can be done automatically using a scheduling mechanism, or if required there is the ability to manually generate fees. The generated fees are available for preview and if required, can be amended, prior to processing. The process of moving from fee generation to fee processing can be automated if required.
In all cases, fees will be posted to the underlying financial accounting framework known as the Nominal (or General Ledger) so that it will be possible to keep accurate records of revenue generated. For institutional fund managers, the fee entries generated can be recorded into a separate trial balance for each fund.