4 Steps to assess your Performance Fee Operational Practices

Performance Fee Operations Model

Fund Elements Performance Fee Operations Model provides an end to end view of all the elementary steps required to calculate performance fees for your Investment Funds. It provides transparency for everyone who needs to know about the actions that need to be taken and the information that flows between your teams.   

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Step 1 - Your Funds

The first step we take is to work with you to build your performance fee operations model. This involves a walk through to familiarize you with processes and information flows and validate each step. We create a space for you to work in and update the model to reflect the resources, the systems and/or service providers, you use to complete the performance fees calculations for your funds. We will confirm the information you will need to collect in the data tables during the assessment phase. 

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Step 2 - Assessment

The assessment step is when the collaborative software on which the Performance Fee Operations Model is built provides you with the heavy lifting you need to complete the review across all of your funds and services providers. Avoid email and spreadsheet chaos by sharing your space with those who need to contribute. The data tables are attached to the relevant processes and are quick and easy means for your teams to give feedback on each assessment point.

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Step 3 - Reporting 

The assessment step provides the data you need to analyse your performance fee practices for all of your funds. It provides the operational intelligence you need to identify and agree the key issues. Group the results by client, investment fund or sub-fund. Filter by performance fee calculation type to compare Investor Level and Investment Pool dependencies. Identify and report on compliance versus non compliance with guidance. Isolate exceptions that apply across clients and systems.

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Step 4 - Change Management

The last step involves identifying and managing the actions required to address the issues identified. The built in functionality allows you to:

  • Enable your teams to raise change requests and collaborate with you to agree the approach

  • Package change requests into releases with target dates for completion

  • Build a Register of Performance Fee Spreadsheets

  • Connect each entry in the register to the physical location of the spreadsheet

  • Connect each entry to the issues identified in the data tables.

  • Build and agree additional process controls for Performance Fees calculated using spreadsheets.