| 20110202454 | METHOD AND SYSTEM FOR MANAGING RESOURCES - A method of managing resources through optimising performance-based compensation is presented. The method is particularly applicable to fund management, and can provide a number of advantages in fund management including: asymmetric recourse against a fund manager's compensation, dynamically managed exposure and performance fees varied according to an agreement between an investor and the manager. The method comprises monitoring the value of the fund, calculating a performance fee that is due to the fund manager for managing the fund, adding, when the value of the fund increases, a first portion of the performance fee to a fund manager's account, and a second portion of the performance fee to a cushion account, and subtracting, when the value of the managed fund decreases over said time period, a compensation fee from the cushion account to compensate for at least some of the decreased value of the managed fund. | 08-18-2011 |
