Ready to take your money management to the next level? Our PAMM solution makes it easy to manage your trades for multiple clients, streamline your operations and focus on what matters most: your strategy and your clients.
Our managed account solutions allow clients to securely connect their accounts, giving you the tools to deliver a seamless, end-to-end service.
The UTO Capital PAMM (Percentage Allocation Module Manager) solution allows to a professional account manager to execute trades on behalf of clients. In this structure, the account manager performs as the Fund Manager, while the clients are considered as the Investors.
Clients can diversify their portfolio, covered by account manager’s management and professional expertise.
For example, if the PAMM account has a performance fee of 30% and an investor has an initial equity of $1,000, achieving a 100% return means that the account generates $1,000 in profit.
The Manager earns 30% of the generated profit, which is equivalent to $300. The remaining $700 of the profit belongs to the Investor.
Therefore, at the end of the trading activity, the Investor receives their initial investment of $1,000 plus $700 in net profit, resulting in a total of $1,700. The Manager receives $300 as the performance fee.
Profits and losses in a PAMM account are allocated proportionally according to each Investor’s share of the total equity in the pool.
For example, if Investor 1 has $2,000 and Investor 2 has $1,000, the total PAMM pool is $3,000. Investor 1 therefore holds 66.67% of the pool, while Investor 2 holds 33.33%.
If, at the end of the trading day, the PAMM realizes a total loss of $600, the loss will be allocated proportionally. Investor 1 will bear a loss of $400, while Investor 2 will bear a loss of $200.
Similarly, if the PAMM realizes a profit of $600, the profit will also be distributed proportionally. Investor 1 will receive $400 in profit, while Investor 2 will receive $200.
The performance fee is a percentage of the profit generated from the Investor’s investment. The fee is charged only on the profit and does not apply to the Investor’s initial capital. The remaining profit, after deduction of the performance fee, is allocated to the Investor.
The payout is calculated based on the Investor’s initial investment, the profit or loss generated, and the applicable performance fee.
Investor Payout = Initial Investment + Net Profit − Performance Fee
Where:
Net Profit = Gross Profit × Investor’s Share of the PAMM Pool
Performance Fee = Gross Profit × Applicable Performance Fee Percentage
In the case of a loss, the Investor’s account is reduced proportionally according to their share of the PAMM pool, and no performance fee is charged on the loss.
