Introduction

Wealth Managers usually earn two types of fees from their clients
(a) AUM based fee: Which is usually a function of assets under management (it can be gross assets i.e. loans are also counted and not just assets). Wealth Managers try and have the same flat fee for all their clients, but tend to have to negotiate these fees on a case by case basis

(b) Retrocession fee: This is a revenue share on any brokerage paid to the executing bank. Sometimes it is a fixed % of notional and sometimes it is negotiated on a per transaction basis

Canopy can help calculate the Fee earned by the wealth manager. The process is as follows
(a) Upload an Excel file containing all the calculation details to Documents on Manager Module and tag it as 'Fee Schedule'

(b) call the api/v1/calculate_wealth_manager_fee_earned end point - the only required inputs (apart from having uploaded the Excel file above) are from_date and to_date in dd-mm-yyyy format.

Fee Schedule Template

A template with all the necessary columns and tabs can be found here. There are 3 necessary tabs in this spreadsheet
(a) aum_based_fee_schedule: carries information on AuM based fee for each child_username. There is also a possibility of putting in a default value

(b) retrocession_fee_schedule: carries information on retrocession for each asset 

class/child_username combination (there is also the possibility of putting in default values)

(c) manual_values_for_retrocession: this contains retrocession for individual ticketrefs and overrides the retrocession_fee_schedule in (b) above

Output

The API call returns a fee calculation summary JSON. It is also returns a Excel Download link sample here

The Excel has 5 tabs in it

Output

• fee calculation summary

• fee calculation details

Input Data for reference

• aum_based_fee_schedule

• retrocession_fee_schedule

• manual_values_for_retrocession

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{
    "fee_calculation_summary": [
        {
            "parent_display_name": "Parent Display 1",
            "parent_username": "parent_username_1",
            "child_display_name": "Child Display 1",
            "child_username": "child_user_name_1",
            "fee_currency": "EUR",
            "aum_fee_amount": 29914.87096192023,
            "retrocession_fee_amount": 4987.453969292835,
            "report_run_at": "2022-05-05"
        },
        {
            "parent_display_name": "Parent Display 2",
            "parent_username": "parent_username_2",
            "child_display_name": "Child Display 2",
            "child_username": "",
            "fee_currency": "EUR",
            "aum_fee_amount": 63.38206099981953,
            "retrocession_fee_amount": null,
            "report_run_at": "2022-05-05"
        },
    ],
    "download_Url": "https://images.canopy.cloud/wealth-manager-fee-report/2022-05-05/xlUtGxXVXlBvOtydICLWurcqNoqNLeCaMYHyDSbnkvJRVhvvssaUFPkZHwjGyBPciOKSqoIRpBkk/wealth_manager_fee_report.xlsx"
}

Invoices

Invoices can be generated from this data. A sample invoice is enclosed here