Fee structure is equal to 50% of any investment returns. Any earned fees would be offset against
Fantastic news! We've Found the answer you've been seeking!
Question:
Fee structure is equal to 50% of any investment returns. Any earned fees would be offset against prior losses until those losses had been entirely recouped. Fees are billed quarterly. The JV's profits are equal to fees less the JV's expenses and are split equally between TOM and USCB.
Suppose the quarterly returns of MAB’s investment in 2008 are shown in the table below. The initial AUM is $50 million. What is the total fee charged to MAB each quarter in 2008 and what is the income received by TOM?
Quarterly return of 2008 | Total Fee | Income to TOM |
Q1: -2% | ||
Q2: 1% | ||
Q3: -1% | ||
Q4: 4% |
Related Book For
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
Posted Date: