HFCIP Fees

Advisors use this page to modify the fees they charge on the current value of the amount that their clients have invested in hedge funds who participate in our Hedge Fund Capital Introduction Program (HFCIP), which is part of our Investors’ Marketplace. When you invest funds for your client at the Hedge Fund Investor Site (available at the Marketplace), you will be able to enter the fees that you charge for that investment on the form that your client must approve and sign.

For each client who invests in a participating hedge fund, you can charge fees based on the Annualized Percentage of Net Liquidation Value of the current value of the client's investment in the Fund and/or the percentage of profit and loss of the client's investment in the Fund, as well as configure the fee posting frequency (monthly or quarterly). After you complete your entries on the page, you will be presented with a PDF form that your client must sign.

Fees entered for the first time in the middle of a period will be calculated and applied as of the date the fee agreement is approved and entered into the system. Fees changed during a period will take effect as of the beginning of the next monthly or quarterly period. If you change the frequency from monthly to quarterly, the change will take effect as of the next calendar quarter. If you change the frequency from quarterly to monthly, the change will take effect after the end of the current calendar quarter.

Hedge funds may offer advisor clients who invest in their funds a discount on the hedge fund’s standard management fee. Check the Hedge Fund's listing at the Hedge Fund Investor Site or contact the Fund directly to see if they offer such a discount.

To configure HFCIP fees for a client account

Click Fees > Configure Client Fees.

Click the configure (gear) icon to edit fees for the selected account and click the check box next to HFCIP Fees.

For each Fund in which the client has invested or plans to invest, click the Enroll check box, and then enter fees as follows:

In the Annualized Percentage of Net Liquidation Value field, enter a fee based on the Annualized Percentage of Net Liquidation Value (NLV) of the current value of the client's investment in the Fund. The percentage of equity fee must be between 0 and 1.
In the Percentage of P&L field, enter a fee based on the percentage of profit and loss of the client's investment in the Fund.
In the Applied column, select Monthly or Quarterly.

When you have completed entries for all applicable Funds, click Continue.
A summary of your fee entries appears. Click Generate PDF to print a PDF document that describes the new fee schedule, and then either keep it for your records or have your client sign the form. You can choose not to have your client sign the form because once you confirm the fees, the client receives a request to approve the fees under Pending Items. Depending on which method you choose, the client can either return the signed form to us or confirm the request in Account Management under Pending Requests. Instructions will be provided on the bottom of the PDF telling you where and how to send the form.