Skip to main content

8  Fees, projections, submission

8.1 Fees

With the allocation set, the fund needs a fee: it pays the firm’s staff and earns its profit.

The fee of each fund is set on the Clients page, in percent a year, and charged per round (a quarter-round charges a quarter of it). Three facts from the game:

  • Higher fees turn clients away and raise revenue per client.
  • Clients tolerate a fee better when their risk-adjusted return is good.
  • Dynamic clients respond to marketing and accept higher fees; conservative clients want fees low and transparent.

A workable rule for the first rounds: a modest fee, differentiated by type (higher for the dynamic funds), unchanged until the results show how AuM responds. Fees are the one decision the game lets you revise every round with an immediate, visible effect in Projections; changing them every round, however, makes the attribution of AuM changes to your investment decisions impossible.

8.2 Projections

The Projections button on every decision page shows the projected AuM and fund performance (before and after fees), a recap of the strategy page and the industry allocation, updated as you type. Use it as a consistency check, not as a forecast: it runs on the analyst’s estimates and on your own, and the realised round will differ. Three things to look at before submitting:

  • Does each fund’s projected tracking error match what station 4 said, roughly?
  • Does any fund show cash that you did not intend (a filter leaving a segment unmatched, Chapter 7)?
  • Are the projected fees and AuM in the range you expect?

8.3 Decision checklist and the deadline

The Decision checklist shows every decision of every team member side by side. Decide in your own Student Decision Area, then either Copy as team’s decisions or edit the Team Decision Area directly. Copying overwrites without backup; agree on who copies and when. Only the Team Decision Area is scored at the deadline.

Round checklist before the deadline:

  1. Strategic allocation per fund: unchanged since round 1 (round 1: entered and checked, Chapter 4).
  2. Tactical allocation per fund: entered for this round, close to the guidance bands (Chapter 6).
  3. Automation preferences: ESG floor set for the ESG funds, Matches clean (Chapter 7).
  4. Asset-level automation: on, unless you decided otherwise and wrote down why.
  5. Fees: set.
  6. Projections: read.
  7. Team Decision Area: holds the version you mean to submit.
  8. The team forum holds this round’s record: views with confidence and justification, tactical matrices, tracking errors, fees.

8.4 Deliverable of this step

The round submitted from the Team Decision Area, and the record in the forum. Chapter 9 reads the results against that record.