Performance Fee
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
| Examples | A | B | C | D |
|---|---|---|---|---|
| 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% |
