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:
“Tennis is more than just a sport. It’s an art, like the ballet. Or like a performance in the theater. When I step on the court I feel like Anna Pavlova. Or like Adelina Patti. Or even like Sarah Bernhardt. I see the footlights in front of me. I hear the whisperings of the audience. I feel an icy shudder. Win or die! Now or never! It’s the crisis of my life.”
—Bill Tilden (1893–1953)
“..for a prostitute’s fee is only a loaf of bread, but the wife of another stalks a man’s very life.”
—Bible: Hebrew, Proverbs 6:26.