Money Manager Fees explained

A money manager fee is a charge levied by a money manager for managing a client's assets. It can be structured in various ways and can be booked over different periods, such as monthly, quarterly, or yearly, and are detailed in the 'Money Manager Fee End of Day file at the end of each period

The article will explain the following items:

• Types of fees
• How to establish a new profile
• Updating a client’s Money Manager fee profile

Types of fees:

• A management fee is a percentage of the assets under management (AuM).
• A performance fee is a percentage of the profit made by the money manager for the client
• A flat fee is a fixed charge that a client pays to a service provider, rather than a fee that varies with the usage or performance. In the context of Saxo's services, a flat fee could be a set amount charged per month for managing an account.
• An advisor fee is a charge that financial advisors levy for providing investment management services. It can be a percentage of the assets under management (AuM), a flat fee, or a performance-based fee.
• A platform fee is typically a fixed charge that a trading platform or service provider levies for the use of their platform. This fee can be for various services, including trading, account maintenance, or as an inactivity fee.

How to establish a new profile

Please complete the Excel template and submit in a case via SaxoConnect to the Configurations department.

The Excel template can be retrieved by pressing here and below you will be able to view an example of a completed template.

Profile : 0.25 MF Monthly, 100 FF (EUR) Yearly
Fee Type	Management Fee	Performance Fee	Flat Fee	Advisor Fee	Platform Fee
Fee Booking Frequency	Monthly	N/A	Yearly	N/A	N/A
Fee Percentage per year booked as per the Fee booking frequency (If Flat fee please mention Amount instead of percentage)	0.25%	N/A	100	N/A	N/A
For Flat Fee, please specify the currency	EUR
Owner ID on which fee profile must be enabled/allowed	11111111

Please note 

If you wish to update your onboarding template with the new money manager fee profile, then please state so in the case submitted to the configuration department.

 

Updating a client’s Money Manager fee profile

If you change the money manager fee profile intramonth, the new profile will take effect from the day of the change. If the underlying customers account should stop paying money manager fees, then the money manager fee profile should be changed to ‘Not Applicable’ in SaxoTools. This will trigger the booking of the fees that have been calculated so far, and the Money Manager fees will be booked at the end of the business day and seen in the Account Statement the following day.

Please note 

Partners intending to move endclients between subowners should ensure to amend the Money Manager profile to "Not Applicable" before moving and re-establish the correct profile once moved to the new owner.