A performance fee is a fee that an investment fund may be charged by the investment manager that manages its assets, calculated by reference to the increase in the fund's net asset value (or "NAV"), which represents the value of the fund's investments. Performance fees are widely used by the investment managers of hedge funds, which typically charge a performance fee of 20% of the increase in the NAV of the fund.
Read more about Performance Fee: Worked Example, High Water Marks, Hurdles, Other Fees, Terminology, See Also
Famous quotes containing the words performance and/or fee:
“Nobody can misunderstand a boy like his own mother.... Mothers at present can bring children into the world, but this performance is apt to mark the end of their capacities. They can’t even attend to the elementary animal requirements of their offspring. It is quite surprising how many children survive in spite of their mothers.”
—Norman Douglas (1868–1952)
“As a general rule never take your whole fee in advance, nor any more than a small retainer. When fully paid beforehand, you are more than a common mortal if you can feel the same interest in the case, as if something was still in prospect for you, as well as for your client.”
—Abraham Lincoln (1809–1865)