Accrued fee debt is the amount of fees charged to an investor that couldn’t be deducted because of insufficient funds on the investment account. Debt is recorded separately for each fee type.
When Debt Is Deducted
When funds are added, the debt-deduction mechanism runs immediately after the standard fee calculation and deduction completes. That happens in these cases:
- The payment period specified in the fee plan is reached.
- Funds are withdrawn from an investment account that has active subscriptions.
- The account unsubscribes from a master account.
Deduction order
When a deposit cannot cover the full debt, debts are deducted starting from the most recently recorded one, across fee types.
Example 1 — Partial Deduction
The account has an accrued Management fee debt of 48 USD. The investor deposits 20 USD — not enough to clear it — so only part is deducted.
| Fee type | Debt before | Deducted | Debt after |
|---|---|---|---|
| Management fee | $48 | $20 | $28 |
Example 2 — Multiple Fee Types
The account carries debts across three fee types. The investor deposits 30 USD, which is applied to the most recently recorded debts first.
| Fee type | Debt before | Deducted | Debt after |
|---|---|---|---|
| Subscription fee | $10 | $10 | $0 |
| Performance fee | $2.30 | $2.30 | $0 |
| Management fee | $28 | $17.70 | $10.30 |
The 30 USD deposit fully clears the Subscription and Performance fee debts and reduces the Management fee debt, leaving 10.30 USD outstanding.
A debt collection can be identified by AD in its transaction comment.
