aktiivimiskäigusedele

Aktiivimiskäigusedele, often translated as "active trading dividend" or "active share dividend," is a concept related to investment funds and their management fees. It typically refers to a performance-based fee that is charged to investors in a fund, in addition to the standard management fee. This fee is triggered when the fund's performance exceeds a certain benchmark or hurdle rate.

The purpose of an aktiivimiskäigusedele is to incentivize fund managers to achieve superior returns for their investors. By linking a portion of the manager's compensation to actual performance, it aligns the interests of the fund manager with those of the investors. If the fund underperforms, no performance fee is charged.

The specific structure of an aktiivimiskäigusedele can vary significantly between funds. It often involves a high-water mark, meaning that a performance fee can only be charged on new profits that exceed the highest previous value of the investor's account. This prevents managers from repeatedly charging fees on the same gains after a period of underperformance. The calculation methodology, including the benchmark used and the percentage of outperformance that constitutes the fee, is detailed in the fund's prospectus. Investors should carefully review these details before investing.