Allocation Methods
At the heart of MAM is the ability for the trader or Managed Funds Manager to allocate the trades by individual sub account lots, percentage, or proportional allocation to suit the overall structure to their trading or fund management style. Alongside the allocation method is the allocation parameters for quick and efficient implementation.
The MetaFX MAM supports 10 allocation methods.
Performance Fees
The MetaFX MAM also allows ACY’s clients to set performance fees. Whereby the software will calculate the fees automatically at the beginning of each month.
The performance fee is a monthly fee requested by the money manager. The fee is based on the High watermark (HWM) principle. The performance fee is agreed before creating the MAM account – clients agree to this by means of a signed LPOA (Limited Power of Attorney) that is also provided free by ACY Partners.
Management Fees
The management fee is the cost of having the client’s moneys professionally managed by the money manager or fund manager. The fee compensates professional money managers to select securities for a fund’s portfolio and manage it based on the fund’s investment objective. Management fee structures vary from fund to fund, but with MetaFX, it is based on a percentage of assets under management (AUM).
Management fees can range from as low as 0.10% to more than 2% of AUM. This disparity in the fees charged is generally attributed to the investment method used by the fund’s manager. The more actively managed a fund is, the higher the management fees that are charged.
Reports
Easy to use reporting system that allows you to display trading and performance reports across all sub-accounts. The reports feature also allows you to request history reports for each sub- account to monitor the performance for each account individually.
You can export these reports to excel or even to HTML.
Commissions
The commissions tab will allow you to calculate performance by High Watermark (HW) algorithm or as a Volume Based fee.
- The High HW algorithm is calculating commissions based on the amount earned by the sub account which is higher than the amount earned for the previous period. The high-water mark ensures that the manager does not get paid large sums for poor performance.
- The Volume based fee is charged for volume traded on the sub account