Pensions and Retirement Training Course on Performance Fee Structures

Module 1: Introduction to Investment Fees
Overview of investment costs and fee structures
Distinction between management fees and performance fees
Importance of fee transparency and governance
Case study: Fee impact on pension fund net returns

Module 2: Performance Fee Models
Common performance fee structures: high-water mark, hurdle rates, fulcrum fees
Multi-tiered incentive schemes and clawback mechanisms
Fee structures for alternative investments: hedge funds, private equity, real assets
Workshop: Comparing fee models and assessing suitability

Module 3: Fee Impact on Returns and Risk
Calculating net returns after fees
Impact on risk-adjusted performance metrics: Sharpe ratio, alpha, beta
Evaluating incentive alignment with fund objectives
Practical exercise: Modeling performance fee scenarios

Module 4: Negotiation, Benchmarking, and Oversight
Negotiating fee arrangements with fund managers
Benchmarking fees against industry standards and peer funds
Monitoring and reporting frameworks for trustees and boards
Workshop: Creating a fee monitoring dashboard

Module 5: Governance, Compliance, and Best Practices
Fiduciary responsibilities regarding performance fees
Regulatory and reporting requirements
Developing policies for fee negotiation, monitoring, and disclosure
Capstone exercise: Designing a performance fee oversight framework for a pension fund