What does the accrual basis of performance reward mean?
Accrual of performance reward means that the manager of wealth management products accrues the part of the actual investment return rate of the product that is higher than the accrual benchmark according to a certain proportion, or calculates the annualized return rate of each subscription/subscription share of the wealth management plan holder and accrues it, based on the product description and the actual published product net value or the amount actually received by the customer.
Among them, this accrual basis is equivalent to the standard line of "excess return" of products. When the income does not exceed, this expense will not be incurred. Exceed, exceed the part according to the agreed proportion.
Under normal circumstances, most wealth management products take "performance comparison benchmark" as "performance reward accrual benchmark". Among them, this "performance comparison benchmark" is an important indicator to measure the relative return of fund performance, which is based on the past performance of products or the historical performance of similar products.
Simply put, it is equivalent to the "small goal" and "passing line" of the future income of wealth management products. If you exceed it, you are excellent. If you don't reach it, you need to continue to work hard. Therefore, people usually regard "performance comparison benchmark" as the "performance reward accrual benchmark" of managers. If you win, you can get more income and improve the enthusiasm of managers.
But not all products will take "performance comparison benchmark" as "performance reward accrual benchmark". Specifically, we should focus on the actual agreement, and we must see the product details and costs clearly before investing.