To attract more investors the manager can set special investment terms on the PAMM account. This is an instrument that artificially raises the account balance (the level from which the manager's compensation is calculated), giving investors better conditions. While the balance of the investment account is raised, the equity isn't affected.
The manager decides to attract some investors to his PAMM Account, and so issues a bonus. An interested investor puts 1,000 USD into the PAMM Account. The balance of the account after the deposit is exactly 1,000 USD. The manager creates a bonus of 300 USD, the balance increases while the actual equity remains unchanged.
The manager doesn’t spend any funds, and the investor doesn’t receive any. However, the investor will now not have to pay any remuneration and will keep 100% of the profits made on the account until the equity reaches the new level set by the manager (1,300 USD).