Skip to main content
Skip table of contents

Fee Management

Key Terminologies

Following are the list of terms and their definition related to the subject of Fees.

Management Fee

Success Fee

Commission which company charges for management of Client Portfolio

Commission which company charges when there is a return on the Portfolio for the period

Management Fee Minimum Amount

High Water Mark (HWM)

Indicates the minimum amount of management fee for the charging period

the highest peak in the Value that Portfolio has reached

Key Functionality

To better understand the process of fee calculations take a quick tour below.

Fee Management Overview

System provides managers with ability to calculate Success and Management Fees automatically by period. Fees are calculating related to specific Client Portfolio. Please note that if Market Place module is active (Strategies and Recommendations Products are using by the Company) System calculates fee separately by each product part of portfolio and non-product part of portfolio.

On the image below there is portfolio allocation by products and non-products. It means that management and success fees by Portfolio (its frequency and rates) will be calculated according to the mandate agreement. Fees by each product (on the example there are 3 products) will be calculated according to product agreement (frequency and rates is specific for each product).

Fee lifecycle

In the Luna Wealth Platform Managers can trigger automatic calculation of success and management fee. Each fee has to pass through the similar workflow which is shortly described on the image below.

There three key stages of fee:

Fee should be calculated and checked

Each fee calculates automatically based on the agreement rates and portfolio details (such as positions and transactions).

If fee is calculated successfully it will be created and visible with “Calculated” status reason. To check fee details it is possible to export fee report.

Indicate that invoice is sent to the client

When invoice is sent to the Client Fee in the system should be also indicated as sent. System will automatically create fee withdrawal order on client bank account and book relevant cash amount.

When fee is paid it will be closed as Received

When fee is paid relevant transaction will be received in the custody report. System will match automatically order information with received transaction if payment details is the same. Fee will be also closed as Received in the fee table with “Received” status reason.

Portfolio Fees

Portfolio Fees can be calculated manually from the Fee screen by one or several Client Portfolios. To calculate Fee it is required to have fee rate and its frequency on the Mandate information.

🔜 Schedule of Client Fees calculations

If portfolio was transfered to the system and already had fee history, It is possible to indicate HWN and its date to relate on the previous data in the calculations

(info) See guides how to calculate fee by the Client Portfolio

Product Fees

Product fees are also calculating manually from the Fee screen. To calculate fee it is required to indicate Success and Management fee rates and frequency on the Product page.

🔜 Schedule to calculate product fees

(info) See guide how to calculate fee by the Product in the Client Portfolio

JavaScript errors detected

Please note, these errors can depend on your browser setup.

If this problem persists, please contact our support.