PM 14.4: Manager Contracts and Fees

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Last updated 3:04 AM on 2/4/26
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4 Terms

1
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  • Limited Partnerships

    • Advantages:

    • Disadvantages:

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2
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Advantage and disadvantage of fees based on AUM

  • Adv: rewards clients on the PM’s skill and ability to grow the asset base

  • Disadv: incentive for PM to engage in safe strategies once the assets are attained

3
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Symmetrical structure with full upside & downside exposure

  • fee =

  • comment on investor and manager relationship

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4
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State the fee for each of the following:

  1. Bonus with full upside & limited downside exposures

  2. Bonus with limited upside & downside exposures

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