When the NAV (Net Asset Value), which is calculated daily, rises 5 % above the historically highest value, the Fund has the right to collect a 15 % performance fee for the percentages above that.
An example: If the investment had been made 1.1.2020 to class R, the investor would have made a net return of 10,4 %. If the Fund had not had the 5/15 performance fee, the investor would have made a net return of 11,4%. In other words, after the 5 % historically highest value hurdle rate, the fund collected a 15 % performance fee which has about 1 % (10,4%-5%=6,4%) (6,4%* 0,15=0,96%). The numbers are estimations.
To what is the performance fee tied?
The performance fee is bound to hurdle rate and to High Water Mark. What does that mean in practice? First, the NAV (Net Asset Value) must rise until its historically highest value (High Water Mark). After that, the fund NAV must increase by 5 % above that. In this case, we are talking about exceeding the hurdle rate.
When the NAV rises 5 % above the historically highest mark, the Fund has the right to collect 15 % of the exceeding percentages. For example, if the Fund grows 6 %, from the exceeding percent, the Fund gets 0,15 % and the investor 0,85%.
