performance fee


A type of fee that gives a portion of the returns of a fund or investment to the manager as a reward for positive performance. The fee is generally a percentage of the profits made on the investments. This type of fee is designed to reward managers for increasing the value of a portfolio, since investors will see value only when the portfolio grows.

Use performance fee in a sentence

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
performance drag performance fund