Performance Fee: Hurdle, High-Water Mark, Accrual & Crystallisation
This lesson is part of the course
In this lesson
You grow a fictional hurdle through the year, take the higher of hurdle and high-water mark as the threshold, accrue 15 % of the outperformance per unit across all units, and reset the high-water mark when the fee crystallises at year end.
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Lessons in this course
- Valuing the Portfolio: Price File, FX Rates & Unrealised Gains Locked
- From Assets to NAV: The Statement of Net Assets & NAV per Unit Locked
- Fee Accruals: Daily Management Fee, Fixed Expenses & the Accrued Balance Locked
- Dealing Day: Subscriptions, Redemptions & the Unit Register Locked
- Income: Dividends on the Ex-Date, Bond Interest & Distribution per Unit Locked
- Performance Fee: Hurdle, High-Water Mark, Accrual & Crystallisation Locked
- NAV Checks: Day-over-Day Moves, Price Tolerance Breaks & Stale Prices Locked
- Investor Statements & a NAV Dashboard Locked