Definition: Assets Under Management is the total value of the funds that are being managed by a leader. AUM is calculated by summing the value of each individual portfolio that is following the leader’s strategy.
Due to rapid fluctuations in the market, a single portfolio can experience a large change in value over the course of a month. As a result, Shrimpy will automatically track the value of each follower portfolio continuously. Throughout the month, countless balance data points will be stored and used to calculate the effective AUM for payments.
When viewing a leader, the AUM fee can be found in the top section of the leader profile. If there are no AUM fees specified, that means the leader does not charge any fees for Assets Under Management.
In the screenshot below, we can see the leader is charging a 2% AUM fee. That means every month, anyone who is following this leader will be charged 2% of the funds that are following the leader.
On a monthly basis, each follower will be charged based on the value of their portfolio that was under management by the leader. The subscription and follower charges will both be processed on the same day. The AUM fees are always charged as a percentage of the portfolio value.
Example: Let’s say you were following a leader who had a 1% AUM monthly charge. That means every month, you will pay the leader 1% of your portfolio's assets under management. Only the portfolio that is following the leader will be used to calculate the charge.
Calculation: Given a 30-day month.
If you started following the leader on the first day of the month and the value of your portfolio remained at exactly $100 until the 10th day of the month when it jumped to $200, and then you stopped following on the 20th day of the month (so you did not follow the leader between the 20th and 30th day of the month), then we can calculate how much you owe using the following formula
(($100 x 0.01) + ($200 x 0.01) + ($0 x 0.01)) / 3 = $1
For this month, you would owe exactly $1.
Your following fees can be found by navigating to the "Payment" tab inside "Settings".
Payment Date: When is the payment due?
Shrimpy will always charge based on the day that you subscribed. If you subscribed on May 15th, then your next payment will be processed on the 15th of June. On this same day, Shrimpy will also charge any fees that have been accrued throughout the last month that are due to leaders.
In the above “Calculation” example, if the renewal date for your subscription was on the 15th of the month, then the following fee for the first 15 days would be charged on that day, but the remaining 5 days (between the 15th and 20th of the month) would be charged the next month on the 15th.
Have questions, comments or concerns? Feel free to reach out to us via the blue "Support" button found in the bottom left corner of your Dashboard, or send an email to Support@Shrimpy.io.