Please refer to the below for the fees collection process.
- Investment advisory and management fees:
- Standard frequency for fee charging: Monthly
- Basis for fee charging: Daily average portfolio value as per the applicable fee structure for the period.
For instance, - The investment advisory and management fee computation formula is mentioned below:
(a) Base Value * 250 BPS * Days/365 as per client agreement
(b) Base Value = Average AUM excluding Cash & Cash Accruals
- Example:
(a) Average AUM = 100000, Elons = 10000, Cash = 10000, Cash Accruals = -12000 then the investment advisory and management fee will be computed for 110000 (AUM+ELONs)*250 BPS* Days/365
- Safekeeping fees:
- Standard frequency for fee charging: Monthly
- Basis for fee charging: Daily average portfolio value including cash for the period.
For instance, - The safe-keeping computation formula is mentioned below:
(a) Base Value * 0.15 BPS * Days/365 as per client agreement
(b) Base Value = Average AUM including Cash & Cash Accruals - Example:
(a) Average AUM = 100000, Elons = 10000, Cash = 10000, Cash Accruals = -12000 then the safekeeping fee will be computed for 120000 (AUM+ELONS+ CASH)*0.15 BPS* Days/365
- Collection Process Overview:
- All applicable fees will be debited to the client's Kristal account.
- If adequate cash balance is available, then the applicable fee amount will be deducted from the available cash. The details of the same can be validated from the cash ledger tab in the reports section.
- If adequate cash balance is not available, then the fee amount will be blocked in margin account (where margin is enabled)
- Applicable fee will be accrued and collected whenever fresh cash is added or maturity/redemption proceeds are received in the account.
- Please note that if a client deposits/realizes cash for any purpose in his/her Kristal account and there are pending fees to be collected, then the fees will be collected first. The available balance post fee debit/block will be available for placing the trade.
- When invoices are issued, clients will receive an email with instructions on how to download the invoice from the “Invoices” tab iin the Reports section. Both the invoice and supporting data will be available for download from there.
- Fees accrued will be available in the Reports section under “Fees Due.” This section will include a detailed breakdown of individual fees as well as the total fees due. All amounts will be in USD.
- Reminder emails for accrued fees will be sent at the beginning of March each year.
- Accrued applicable fee will be collected from the clients account by way of pro-rated liquidation from existing (liquid) assets at end of March of the following year for outstanding balances till December of the year.
- Please note that the pending fees will not attract penal interest for a period of 6 months from the date due. Post the same, a penal interest rate of 6% p.a. will be charged for the entire period.