PAMM Allocation Method
For a pre-agreed Success Fee (%), the PersonalCapital PAMM Program allows Fund Managers to trade with the money of numerous PAMM Investor Accounts. Profits and losses on the PAMM Manager’s Account are automatically redistributed to each Investor’s Account depending on their investment amount.
Understanding how the PersonalCapital PAMM Program Works
You create a PersonalCapital PAMM Account and assign funds to your Manager Account, which is known as the Manager’s Capital, as a PersonalCapital PAMM Manager. When a PAMM Manager successfully manages an investor’s money and makes a profit, the Manager is paid a Success Fee, which is a predetermined proportion of the investor’s profit share.
Investors can study the PAMM Performance Rankings page to find PAMM Managers who are a good fit for their investing goals. By filtering results by active/inactive strategies, current ranking, PAMM strategy name, minimum deposit, gain, and maximum drawdown, it’s simple to locate a Manager using the customised PAMM Performance Table.
PAMM managers trade with their own money (Manager’s Capital) as well as the money of any other investors in the account. Simply expressed, any earnings or losses earned on the PAMM Manager’s account will be proportionally split among all accounts that have invested in the PAMM Manager.
Investment in PAMM
Manager Account
The Manager’s account is where the PAMM Manager and Investors are all invested. The quantity of equity they contribute determines their part of the overall investment and, as a result, their potential participation of any profit or loss.
Distribution of Profit/ Loss
When positions on the PAMM Manager account are closed and the account balance improves, if a Manager is profitable, the benefit will be divided among all Investors in the account depending on their participation.
