For full details and examples please refer to the prospectus. The fund pays a performance Fee of 20% (calculated on a daily basis) of the outperformance of the current day NAV relative to the prior day’s NAV subject to the High Water Mark. A performance fee is paid (if due) once provision has been made for all other fees and expenses of the fund.
The performance fee accrues daily and is included in the daily calculation of the NAV. The performance fee crystallises at the end of each performance period (annually) and is paid to the Investment Manager annually in arrears.
There is no maximum monetary cap on the amount that may be charged to an absolute return fund in respect of the performance fee as this is determined by the rate of growth of the relevant absolute return fund.
Performance Fee Calculation Methodology
A performance fee is accrued where the current day NAV is above the high water mark. Where the current day NAV falls below the high water mark no performance fee is accrued within the NAV.
At the applicable valuation point, the performance fee accrual adjustment is calculated by comparing the prior day’s NAV with the current day NAV with reference to the high water mark multiplied by the number of shares in issue at that valuation point. If over the performance period the current day NAV is above the high water mark a performance fee may be accrued. If it falls below the high water mark, any performance fee accumulated during that performance period will be forfeited and no further performance fee will be accrued until (and if) the current day NAV rises above the high water mark.
The performance fee accrual will never fall below zero.
The cumulative performance fee accrued from the beginning of the performance period will be included in the calculation of the NAV of each share class on that day.
The Auditor of the fund will audit the calculations of any performance fee accrued or paid out as part of their annual audit.