Apexi7
Passed Away - Al Fatihah
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- Jul 26, 2010
- Messages
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ThinkForex PAMM Solution
The ThinkForex PAMM solution provides Money Managers every professional tool needed to successfully manage clients. �Our PAMM solution allows the trader on one trading platform to manage an unlimited number of accounts.� Managed accounts can be funded in different currencies and deposited via multiple funding methods.
ThinkForex provides dedicated PAMM support to customize an account that suits your needs.� Having a member of the ThinkForex team on your side for the backend items allows you to focus on managing successful trades and bringing in new clients.
How it Works
On a PAMM account, profits & losses are allocated based on each individual investor�s capital.� The Manager receives a fee as a percentage of the profits.� The Manager can also receive a management fee for managing client funds.
Example:
Money Manager XYZ - 30% Performance Fee, High Watermark
Investor A - $10,000 � 10%
Investor B - $20,000 � 20%
Investor C - $70,000 � 70%
Total Managed Equity: $100,000
Month 1:� Money Manager XYZ has a successful first month and trades his equity to $110,000 earning a profit of $10,000.� Money Manager XYZ earns 30% of the $10,000 profit, earning the Money Manager $3,000 in performance fees.� The remaining profit of $7,000 is allocated to the investors on a percentage basis:
Investor A - $10,000 plus $700 (10% of $7,000) = $10,700
Investor B - $20,000 plus $1,400 (20% of $7,000) = $21,400
Investor C - $70,000 plus $4,900 (70% of $7,000) = $74,900
New Total Managed Equity: $107,000
Month 2: Money Manager XYZ has a losing month and loses $2,000.� Money Manager XYZ does make any performance fees in a losing month (Money Manager�s discretion how to customize account and fees).� The losses are allocated to the investors on a percentage basis:
Investor A - $10,700 less $200 (10% of $2,000) = $10,500
Investor B - $21,400 less $400 (20% of $2,000) = $21,000
Investor C - $74,900 less $1,400 (70% of $2,000) = $73,500
New Total Managed Equity: $105,000
Month 3: Money Manager XYZ is back to his winning ways and earns $10,000, increasing the total equity to $115,000.� As the high watermark was set in month 1 at $107,000, the manager only earns a fee on amounts above that mark.� In this instance, the Money Manager would earn 30% of $8,000, earning $2,400 in performance fees.� The remaining profit of $7,600 is split up according to individual equity:
Investor A - $10,500 plus $760 (10% of $7,600) = $11,260
Investor B - $21,000 plus $1,520 (20% of $7,600) = $22,520
Investor C - $73,500 plus $5,320 (70% of $7,600) = $78,820
New Total Managed Equity: $112,600
The ThinkForex PAMM solution provides Money Managers every professional tool needed to successfully manage clients. �Our PAMM solution allows the trader on one trading platform to manage an unlimited number of accounts.� Managed accounts can be funded in different currencies and deposited via multiple funding methods.
ThinkForex provides dedicated PAMM support to customize an account that suits your needs.� Having a member of the ThinkForex team on your side for the backend items allows you to focus on managing successful trades and bringing in new clients.
How it Works
On a PAMM account, profits & losses are allocated based on each individual investor�s capital.� The Manager receives a fee as a percentage of the profits.� The Manager can also receive a management fee for managing client funds.
Example:
Money Manager XYZ - 30% Performance Fee, High Watermark
Investor A - $10,000 � 10%
Investor B - $20,000 � 20%
Investor C - $70,000 � 70%
Total Managed Equity: $100,000
Month 1:� Money Manager XYZ has a successful first month and trades his equity to $110,000 earning a profit of $10,000.� Money Manager XYZ earns 30% of the $10,000 profit, earning the Money Manager $3,000 in performance fees.� The remaining profit of $7,000 is allocated to the investors on a percentage basis:
Investor A - $10,000 plus $700 (10% of $7,000) = $10,700
Investor B - $20,000 plus $1,400 (20% of $7,000) = $21,400
Investor C - $70,000 plus $4,900 (70% of $7,000) = $74,900
New Total Managed Equity: $107,000
Month 2: Money Manager XYZ has a losing month and loses $2,000.� Money Manager XYZ does make any performance fees in a losing month (Money Manager�s discretion how to customize account and fees).� The losses are allocated to the investors on a percentage basis:
Investor A - $10,700 less $200 (10% of $2,000) = $10,500
Investor B - $21,400 less $400 (20% of $2,000) = $21,000
Investor C - $74,900 less $1,400 (70% of $2,000) = $73,500
New Total Managed Equity: $105,000
Month 3: Money Manager XYZ is back to his winning ways and earns $10,000, increasing the total equity to $115,000.� As the high watermark was set in month 1 at $107,000, the manager only earns a fee on amounts above that mark.� In this instance, the Money Manager would earn 30% of $8,000, earning $2,400 in performance fees.� The remaining profit of $7,600 is split up according to individual equity:
Investor A - $10,500 plus $760 (10% of $7,600) = $11,260
Investor B - $21,000 plus $1,520 (20% of $7,600) = $22,520
Investor C - $73,500 plus $5,320 (70% of $7,600) = $78,820
New Total Managed Equity: $112,600
