Calculate fund management fee
Management fee is calculated as a percentage of assets under management. You can find available management fee formulas below: Management fees available in FA Fund management.
To handle management fees for a fund, see Set up, accrue and capitalize management fee.
Management fees available in FA Fund management
Formula | Description | Transaction type |
|---|---|---|
Accrued management fee (ACT/ACT) | Accrued management fee with fixed annual percentage. | Management fee,MFEE |
Accrued management fee on end of period GAV (ACT/365) | Accrued management fee with fixed annual percentage. The calculation is based on the end of period GAV. GAV includes:
| Management fee,MFEE |
Accrued management fee on end of period GAV (ACT/ACT) | Accrued management fee with fixed annual percentage. The calculation is based on the end of period GAV. GAV includes:
| Management fee,MFEE |
Accrued management fee with daily transactions (ACT/ACT) | Accrued management fee with fixed annual percentage. This fee formula is a variant of "Accrued management fee (ACT/ACT)" that creates a separate fee transaction for each date during the calculation period. | Management fee,MFEE |
Set up, accrue and capitalize management fee
You can specify a management fee on the fund or on the share class level. Fund-level fees are calculated first, in the order you place them in the Fund wizard, followed by the share class fees.
To set up fee calculation, accrual and capitalization:
For fund-level fees, define the fees in the Fund wizard. For share class-level fees, define the fees in the Share class wizard. Open the Fee structure tab, and add the fee formula and other parameters. For each fee, select Use crystallization schedule for capitalization in Additional options. For details about fee settings, see Create a fund and Add share classes.
Define the fee capitalization schedule. Open the Schedules tab in the Fund wizard, click Add fee crystallization schedule and choose the schedule parameters. For details about schedule settings, see Create a fund.
Open the fund portfolio in FA Back and go to the Accounts tab. Select the cash account you want to use for fee capitalization and mark it with the “Fee capitalization” tag.
After you set up fee accrual and capitalization, FA Fund management creates accrued fee transactions every time you calculate NAV. On the fee capitalization date, the fee amount is transferred from the cash account to the accrued fees account when you accept NAV.