Does the High Water Market deduct the management fee and performance fee?
For example:
Initial NAV: 100
Incentive fee: 20%
Performance fee: 2%
After one year, the NAV up 10.
Is the high water market
1) 100 + 100*0.1 = 110 or
2) 100 + 100*0.1 - 100*0.02 (management fee) - 10*0.2 (Performance fee) = 106
Thanks!
For example:
Initial NAV: 100
Incentive fee: 20%
Performance fee: 2%
After one year, the NAV up 10.
Is the high water market
1) 100 + 100*0.1 = 110 or
2) 100 + 100*0.1 - 100*0.02 (management fee) - 10*0.2 (Performance fee) = 106
Thanks!