Rebalancing Performance Fees

This article describes the act of Rebalancing Fees. The article is broken down into two sections:

• Overview
• Fee Balancing Logic
• Activating the Feature

Overview

On a contact's Enrollment Details page, you may need to adjust the payment schedule as the contact gets further into the program. This could be because the contact could not make a payment or missed a payment that would have been processed before an earned performance fee was scheduled to be processed.

Begin by going to the Enrollment Tab, select the particular contact from the search bar that needs their fees rebalanced.

Next, click on Rebalance Fees in the Navigation Bar (see the red highlighted area below) to automatically adjust the payment schedule so the performance fees are paid when there is money available.

The following page will then open.

This acts effectively the same way when you settle a debt on the negotiator's interface and earned performance fees are scheduled. The future payments are analyzed, and the earned performance fees are slotted in when there is a positive future balance.

IMPORTANT: Rebalancing actions initiated from the enrollment details page are captured in the system logs and contact history tab.

Fee Balancing Logic

The fee rebalancing logic splits fees more equitably among multiple payees. Instead of scheduling fees sequentially, the system now calculates the proportional share for each payee based on the total amount owed and distributes available funds accordingly. This ensures a more balanced and fair allocation of performance fees during rebalancing.

Activating the Feature

IMPORTANT: If you do not see the "Rebalance Performance Fees" option, contact support@setforth.com to have "Enable Performance Fee Rebalance" turned on for an Account so that the feature is available to activate.

Once Forth Support has enabled the Rebalance Fees button, your administrator can activate it by doing the following:

1. Go to the Admin tab > click Roles.
2. Scroll down to the Enrollments section.
3. Select the Rebalance Performance Fees checkbox > click Save.