Performance-based fee compensation relies on performance fee models that require that specific parameters be clearly stipulated in the investment management agreeement. This case study is one example of the misinterpretation that can occur when the fee model’s parameters are not specifically defined.
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Avoiding misintrepretation in calculating performance-based fees
fees, investment management, investment management agreement
In the future to avoid this kind of misrepresentation, Government authority should consider standardizing how fee to be calculated such that Mandatory provident fund investors are protected.
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