Performance Fee

[glam-mod]

In the context of GLAM, the performance fee could be structured either as a fixed fee or as a relative fee. A fixed performance fee would be a predetermined amount that is due when the product reaches or exceeds certain performance targets. Alternatively, a relative performance fee is typically a percentage of the performance gains achieved by the product.

The manager of the product sets the terms for how and when the performance fee is accrued and deducted. This includes defining the performance targets, the timing of the fee calculation, and the method of fee deduction. These details are specified to ensure clarity and alignment with the investment objectives of the product.