PMS Fees Illustration

a. Capital Contribution / Opening Value (Rs.)

b. Management Fee (% per annum)

c. Other Expenses (% per annum)

d. Performance Fee(% per annum)

e. Hurdle Rate of Return (% per annum)

f. Brokerage and Transaction Cost (% per annum)

g. Gain (%)

Calculation

	Particulars		Values
i	Capital Contributed / Assets under Management	i = a	₹10.00
ii	Gain / (Loss) on Investment based on the Scenario	ii= i*g	₹0.10
iii	Gross Value of the Portfolio at the end of the year	iii= i + ii	₹10.10
iv	Average Assets Under Management	iv= (i + iii) / 2	₹10.05
v	Other Expenses	v= iv x c	₹0.00
vi	Brokerage and Transaction cost	vi= iv x f	₹-0.10
vii	Management Fees	vii = (iv + v + vi) x b	₹-0.10
viii	Total Charges Before Performance Fee	viii = v + vi + vii	₹-0.20
ix	Gross Value of the Portfolio before Performance fee	ix = iii + viii	₹9.90
x	High Water Mark Value (HWM) (Capital contributed for 1st year and second year onwards as defined in the PMS agreement.		₹10.00
xi	Hurdle Rate of return or as defined in the PMS agreement	xi = i x e	₹0.10
xii	Gross Value of the Portfolio before Performance fee is greater than High Water Mark Value + Hurdle rate of return	xii = ix > (x+xi) then Yes else No P Fees	No
xiii	Portfolio return subject of Performance Fee	xiii = ix - x - xi	₹0.00
xiv	Performance Fee	xiv = xiii x d	₹0.00
xv	Net value of the Portfolio at the end of the year after all fees and expenses	xv = ix + xiv	₹9.90
xvi	% Portfolio Return	xvi = ((xv - i) / i) %	-1.00%
xvii	High Water Mark to be carried forward for next year. When performance fee is charged from the portfolio itself.	xvii = Max (x , xv)	₹10.00
xvii	High Water Mark to be carried forward for next year. When performance fee is paid separately by the investor to the PM.	xvii = Max (ix , x)	₹10.00

Is performance fee charged from portfolio itself?

Notes:

Management Fee is assumed to be charged annually in the illustration. However, it can be charged at any frequency (Daily, Monthly, Quarterly, Semi-annually, Annually) as defined in the PMS agreement and permitted under SEBI regulations.
Management Fee can be based on Average portfolio value or closing portfolio value, or other methods as defined in the PMS agreement.
Returns are assumed to be generated linearly throughout the year.
Other Expenses include Account Opening charges, stamp duty, Audit Fee, Bank charges, Fund Accounting charges, Custody Fee, demat charges, or other miscellaneous expenses.
Brokerage and transaction costs are illustrated based on Average AUM but are charged on actual trades.
All Fees and charges are subject to GST.
High Water Mark for the 1st Year is the Capital invested. For subsequent years, it is the year-end closing value after all charges and fees, unless otherwise defined in the PMS agreement.
Hurdle Rate is calculated based on the Higher of (HWM or previous year closing capital), but may differ as per the PMS agreement.
Hurdle Rate is prorated if the performance fee period is less than 1 year or if there are inflows/outflows from the portfolio.
This illustration shows High Water Mark carry forward scenarios for fair treatment of the investor.
This is a generic illustration; each portfolio manager may modify it as per their PMS agreement terms and conditions.
Portfolio Managers should also refer to the illustrations in Annexure 4A of the Master Circular for Portfolio Managers dated June 07, 2024.