How do you set up Stepped or Cumulative Admin Fees and what is the difference?
- 27 Jan 2023
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How do you set up Stepped or Cumulative Admin Fees and what is the difference?
- Updated on 27 Jan 2023
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A stepped administrative fee can cumulative or not cumulative, depending on how it is set up.
Answer:
A stepped fee can be cumulative or not cumulative. If you choose the stepped fee calculation without selecting the cumulative checkbox, the fee will be based on just one percentage that is based on the total value of assets that you are using for the calculation. For example, if the amount of the fund was 225,000 the fee would be .750 based on the below screenshot.
If, in this example, the Cumulative checkbox was selected ,the system would calculate the fee at 1.50% for the first 100,000 and 1.00 for the balance of the fund up to 200,000.
- Select the Cumulative checkbox if you want to assess a different fee factor to each Fund balance range (for example, 1% up to $50,000, and 5% from $50,000 to $100,000). Clear the checkbox if you want to assess a single fee factor to the entire Fund value depending on the highest value the Fund has reached.
- Enter the upper limit of the Fund balance range in the Value Amount field. Funds with balances less than or equal to this amount will be assessed the selected fee.
- Enter either % or $ to indicate whether you want to charge a flat fee or a percentage.
- In the Fee Factor field, enter the dollar amount or percentage that you want to charge.
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