There are four ways that management fees are typically calculated as follows.
Quarterly-in-advance – The manager collects a full quarter of fees calculated off an investor’s opening capital balance for the quarter.
Monthly-in-advance – The manager collects a month of fees calculated off an investor’s opening capital balance for the month.
Monthly-in-arrears – The manager collects a month of fees calculated off an investor’s ending capital account balance after allocating gains & losses for the month.
Quarterly-in-arrears – The manager collects a full quarter of fees at the end of the quarter calculated off an investor’s ending capital account balance after allocating gains & losses for the quarter.
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