| A | B | C | D | E | F | G | H | I | |
|---|---|---|---|---|---|---|---|---|---|
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2 | Fee Calculator | ||||||||
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4 | Assumptions | Amounts | |||||||
5 | Intial Capital Contribution (i) | ₹1,00,00,000 | |||||||
6 | Management Fee (%age per annum) (ii) | 1.5% | |||||||
7 | Performance fee (iii) | 15.0% | |||||||
8 | Hurdle Rate of Return (%age per annum) (iv) | 10.0% | |||||||
9 | Catchup (v) | Full Catchup | |||||||
10 | Brokerage + STT (vi) | 0.15% | |||||||
11 | Other Expenses (vii) | 0.15% | |||||||
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13 | Particulars | Notation | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
14 | Return | A | 25.0% | 25.0% | 25.0% | 25.0% | 25.0% | ||
15 | Opening Assets under Management | B = O(T-1) | 1,00,00,000.00 | 1,19,52,875.00 | 1,43,38,815.83 | 1,71,93,042.15 | 2,06,16,645.86 | ||
16 | Add profit | C = A * B | 25,00,000.00 | 29,88,218.75 | 35,84,703.96 | 42,98,260.54 | 51,54,161.47 | ||
17 | Gross Value of the Portfolio at the end of the year | D = B + C | 1,25,00,000.00 | 1,49,41,093.75 | 1,79,23,519.78 | 2,14,91,302.69 | 2,57,70,807.33 | ||
18 | Daily Weighted Average assets under management | E = (B + D) / 2 | 1,12,50,000.00 | 1,34,46,984.38 | 1,61,31,167.80 | 1,93,42,172.42 | 2,31,93,726.60 | ||
19 | Less: Brokerage & STT & GST | F = E * vi | 16,875.00 | 20,170.48 | 24,196.75 | 29,013.26 | 34,790.59 | ||
20 | Less: Other Expenses | Less: Other Expenses | 16,875.00 | 20,170.48 | 24,196.75 | 29,013.26 | 34,790.59 | ||
21 | Less: Management Fees | H = E * ii | 1,68,750.00 | 2,01,704.77 | 2,41,967.52 | 2,90,132.59 | 3,47,905.90 | ||
22 | Gross Value of the Portfolio before Performance fee | I = D - ( F + G + H) | 1,22,97,500.00 | 1,46,99,048.03 | 1,76,33,158.76 | 2,11,43,143.59 | 2,53,53,320.25 | ||
23 | High Watermark ( Pre-fees) | J | 1,00,00,000.00 | 1,22,97,500.00 | 1,46,99,048.03 | 1,76,33,158.76 | 2,11,43,143.59 | ||
24 | Hurdle | K = B * iv | 10,00,000.00 | 11,95,287.50 | 14,33,881.58 | 17,19,304.22 | 20,61,664.59 | ||
25 | Catchup Correction | L | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||
26 | Performance Fee | M | 3,44,625.00 | 3,60,232.20 | 4,40,116.61 | 5,26,497.72 | 6,31,526.50 | ||
27 | Adjusted Performance Fee | N = L + M | 3,44,625.00 | 3,60,232.20 | 4,40,116.61 | 5,26,497.72 | 6,31,526.50 | ||
28 | Total Fees | O = H + N | 5,13,375.00 | 5,61,936.97 | 6,82,084.13 | 8,16,630.31 | 9,79,432.40 | ||
29 | Ending AUM | P = I - N | 1,19,52,875.00 | 1,43,38,815.83 | 1,71,93,042.15 | 2,06,16,645.86 | 2,47,21,793.75 | ||
30 | % Portfolio return | Q = P / B * 100 | 19.5% | 20.0% | 19.9% | 19.9% | 19.9% | ||
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33 | Notes | ||||||||
34 | 1 | Other Expenses is charged on Daily Weighted Average assets under management. | |||||||
35 | 2 | In the illustration, Performance fee is assumed to be charged annually. However, the Portfolio Manager can charge fee at any frequency i.e. Quarterly, Semi-annually, Annually or at any other frequency as defined in the PMS agreement and as permitted under SEBI regulations. | |||||||
36 | 3 | Returns are assumed to be generated linearly through the year. | |||||||
37 | 4 | Brokerage and transaction cost for the illustration purpose is charged on the Average AUM. However, Brokerage and Transaction cost are charged on basis the actuals trades. | |||||||
38 | 5 | Other expenses include Account opening fee, Franking notarization, Stamp duty, Custodian fee, Fund accounting charges, registrar and transfer agent fee, depository charges, stamp duty, audit fee, Bank charges legal and professional cost and incidental other miscellaneous expenses, as stated in PMS Agreement and are charged on daily average AUM or at actuals as applicable. Here in fee calculator it is charged on Average AUM and considered as 7 bps, however it will be charged as per PMS Agreement and will be upto 0.5% of AUM | |||||||
39 | 6 | This is only a generic illustration, fees and charges shall be levied as per the terms and condition of their PMS agreement. | |||||||
40 | 7 | High Watermark (Pre-Fees) shall mean the higher of either ‘corpus investment value’ or ‘highest NAV (before charging Performance Fee)’ on which client has paid a Performance Fee to the Portfolio Manager’. | |||||||
41 | 8 | High Water Mark (Net of Fees)” is the High Watermark (Pre-Fees) minus the performance fee charged, if any, in the relevant period. | |||||||
42 | 9 | Hurdle AUM is computed by multiplying the hurdle rate with the maximum of Net value of the Portfolio at the end of the previous year after all fees and expenses or High Watermark (Net of fees) . Assuming performance fee is charged from the portfolio itself. | |||||||
43 | 10 | For this illustration, High Water Mark for the 1st Year is the Capital invested and from second year onwards if performance fee is charged, it’s the year end closing value after all charges and fees, else it remains the same. However, in actual, High Water Mark is defined in the PMS agreement and may differ from this illustration. | |||||||
44 | 11 | For this illustration, Hurdle rate is calculated on Higher of (HWM or previous year closing NAV). However, in actual Hurdle Rate of return is defined in the PMS agreement and may differ from this illustration. | |||||||
45 | 12 | All Fees and charges are subject to GST & applicable taxes | |||||||
46 | 13 | The above fee calculator shows the High Water Mark to be carried forward in different scenario for equal and fair treatment to the investor. | |||||||
47 | 14 | High Watermark for 1st year it is Capital contributed. 2nd year onwards as defined in the PMS agreement | |||||||
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