An annual performance fee of 10% is levied on any returns over 10% (net of fees) in a 12-month period ending 31st December. The return is measured from the higher of any previous year-end values or the initial investment. Should the investment drop in value, Albert E Sharp must bring the value back above the previous highest year-end value (a high-water mark) before we can receive a performance fee again. An example of the fee is shown below.
Example of Performance Fee
|12 Months Return Net of Fees||5.0%||10.0%||15.0%||20.0%|
|Return Over 10% Hurdle||0.0%||0.0%||5.0%||10.0%|
|Performance Fee (10% of Return Over Hurdle) as % of Portfolio Value||0.0%||0.0%||0.5%||1.0%|