Portfolio Managers (PM) can allocate a customizable share of their performance fee to associates: users linked to the fund by the PM.
Read more about the performance fee and how the performance fee is calculated.
There are currently 2 types of performance fee-sharing models for funds:
-
Auxiliary offer
- The PM shares a percentage of all performance fees generated in a fund with one auxiliary associate. A PM can only have one auxiliary associate per fund.
-
Referral offer
- The PM shares a percentage of the performance fees generated in a fund by the investors invited by the referral associate. PMs can have up to 100 active referral associates per fund, while any referral associate can be linked to multiple funds at a time. PMs cannot make themselves a referral associate for any funds they manage.
Note: fee-sharing is only available for funds.
Click any of the tabs below for more information about fee-sharing:
- Calculating fee-sharing
- Setting up fee-sharing
- Auxiliary associates
- Referral associates
- Performance fee notifications
Calculating fee-sharing
PMs set the fee-sharing rate anywhere between 0.1% and 100%, at a precision of 0.1%. This rate determines the amount of performance fee shared with an associate at the end of the billing period, depending on PM’s performance in the fund.
Performance fees are paid at the end of the billing period depending on the fee-sharing model.
For auxiliary associates:
- Shared fees: amount paid to an associate by the PM.
(Shared fee = total performance fee amount from all investments in a fund x fee-sharing rate)
- Personal fees: amount the PM receives personally.
(Personal fee = Total performance fee amount from all investments in a fund - shared fee)
For referral associates:
- Shared fees: amount paid to an associate by the PM.
(Shared fee = total performance fee amount from all investments made by investors the associate invited to the fund x fee-sharing rate)
- Personal fees: amount the PM receives personally.
(Personal fee = Total performance fee amount from all investments in a fund - shared fee)
Setting up fee-sharing
PMs set up performance fee sharing in the Portfolio management area of their Personal Area (PA). Associates must have an Exness account registered to accept invitations to become a fund’s associate.
Fee-sharing is set up differently depending on the type of associate being invited:
Auxiliary associates
Auxiliary associates are invited to join a fund with an auxiliary offer. PMs have the option to edit or delete pending auxiliary offers until they are accepted by the associate.
Note: it is no longer possible to create new auxiliary offers. PMs with existing auxiliary offers that are pending or active will see them in the Fee sharing tab. Only new referral offers can be in the Associates tab.
With an active auxiliary offer, the auxiliary associate will receive a percentage of the difference between the total fund performance and the fees shared with referral associates linked to the fund.
Learn more about auxiliary associates below:
- Changing the auxiliary offer
- How auxiliary associates accept an offer
- How auxiliary associates are paid out
Changing the auxiliary offer
- Before an offer is accepted: PMs can manually change or cancel the offer only until an associate accepts the auxiliary offer, with changes applied immediately.
- After an offer is accepted: PMs can only change the fee-sharing rate and/or remove the associate from the fund if they contact Support for further assistance. Changes made this way only take effect the following billing period, continuing with the old set conditions until the end of the current billing period.
Note: changes can take up to 3 working days to be confirmed after the start of the next billing period if the associate is already linked to a fund.
How auxiliary associates accept an offer
- Associates are sent an offer link which open a confirmation page with:
- PM’s name
- Fund description
- Fee-sharing conditions
- The fund’s performance is shown to the associate before they accept the invitation. Any changes the PM makes to the fee-sharing conditions are updated on the confirmation page.
- If the PM cancels fee sharing altogether before the associate accepts the invitation, the confirmation page will return an error message and encourage the associate to contact their PM.
- The associate clicks Accept Offer, which begins these automatic processes:
- A link is created between the associate and that fund.
- An email is sent to the associate with a partner link which the associate may share with potential investors. It is not necessary to share this partner link to be eligible for fee-sharing.
Note: investors must have the latest version of the Exness Investor app to use the partner link.
- The PM can now see the associate’s details listed in the fund’s Fee sharing tab, including the associate’s name, country, and masked registered email address.
How an auxiliary associate receives shared fees
Auxiliary associates should consider the following:
- They are paid into their Portfolio Management commission account at the end of the billing period.
- If they don’t have a commission account, one is created automatically when they receive their first payout.
- They can withdraw their shared fees immediately after receiving them, or at any time, using any withdrawal method supported in their region.
- When they receive payouts from multiple funds, each fund will be paid as separate transactions into the same commission account.
Referral associates
Referral associates receive a customizable share of the performance fee earned in a fund, based on the investors they invite to the fund. A user becomes a referral associate after accepting a referral offer sent to them by the PM. PMs can create up to 100 referral offers, each with custom fee-sharing rates, and have up to 100 active referral associates per fund.
Learn more about referral associates below:
- How to invite a referral associate
- How referral associates accept an offer link
- How referral associates are paid out
How to invite a referral associate
- Log in to your Personal Area (PA).
- Open the Portfolio management area.
- Select an existing fund by clicking View details for it, or create a new fund and return to these instructions after selecting it.
- Open the Associates tab.
- Click Invite Referral Associate.
- Enter a fee-sharing rate from 0.1% to 100%. Click Continue.
- Give this referral associate a unique offer name for your reference, then click Create offer.
- Click Copy link to save the offer link so that it can be sent to an associate.
Created offers appear in the Associates tab with either one of these statuses:
- Pending: an offer that an invited referral associate has not accepted.
- Active: an offer that a referral associate has accepted, linking them to the fund.
Note: up to 100 referral offers and 100 active referral associates are supported by a single fund.
How referral associates accept an offer link
- Once an invited referral associate open the offer link, a confirmation page is presented with these details:
- Fund name
- Offer terms including offer types, fee-sharing rate, and next payment date.
- Portfolio Manager details
- When the referral associate clicks Accept Offer, these automatic processes begin:
- A link is created between the referral associate and that fund.
- An email is sent to the referral associate with a partner link they can share with potential investors to join that fund.
Note: investors must have the latest version of the Exness Investor app to use the partner link.
- The PM will see the referral associate’s details under the Associates tab, which include:
- Associate’s name
- Country of residence
- Masked registered email address.
How referral associates are paid out
Referral associates receive only the share of performance fees from the fund earned through investors that have used the referral associate’s partner link.
Referral associates should consider the following:
- They are paid into their Portfolio Management commission account at the end of the billing period.
- If they don’t have a commission account, one is created automatically when they receive their first payout.
- They can withdraw their shared fees immediately after receiving them, or at any time, using any withdrawal method supported in their region.
- When they receive payouts from multiple funds, each fund will be paid as separate transactions into the same commission account.
Performance fee notifications
Here are some instances where emails are sent out to clients with regards to performance fees:
| Event | Description | Recipient |
| The associate joins a fund |
When an associate clicks Accept Offer when accepting an offer link. This email contains the following data:
|
Associate |
| The associate receives a fee report at the end of the billing period |
An email will be sent to the associate for each fund they may be linked to with a fee report. Each report contains the following data: Incremental profit (if applicable) will return the following data:
If there is no incremental profit the report will return the following data:
|
Associate |
|
The PM changes the fee sharing conditions or disables fee-sharing for the fund while the associate is already linked to the fund Note: Only applicable to fee-sharing under the Fee Sharing tab. |
An email is sent to both the PM and the associate by the PIM Support team after any fee-sharing conditions are changed, or if a fee-sharing deletion request has been completed. This email contains the following data:
|
PM and associate |
We recommend reading more about performance fee reports for an in-depth look at all the data these provide.