Worked Example
An example might be as follows: An investor subscribes for shares worth $1,000,000 in a hedge fund. Over the next year the NAV of the fund increases by 10%, making the investor's shares worth $1,100,000. Of the $100,000 increase, 20% (i.e. $20,000) will be paid to the investment manager, thereby reducing the NAV of the fund by that amount and leaving the investor with shares worth $1,080,000, giving a return of 8% before deduction of any other fees.
Read more about this topic: Performance Fee
Famous quotes containing the word worked:
“I think it’s unfair for people to try to make successful blacks feel guilty for not feeling guilty.... We’re unique in that we’re not supposed to enjoy the things we’ve worked so hard for.”
—Patricia Grayson, African American administrator. As quoted in Time magazine, p. 59 (March 13, 1989)
“I have never worked for fame or praise, and shall not feel their loss as I otherwise would. I have never for a moment lost sight of the humble life I was born to, its small environments, and the consequently little right I had to expect much of myself, and shall have the less to censure, or upbraid myself with for the failures I must see myself make.”
—Clara Barton (1821–1912)