Performance Fee

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:

    “Still be kind,
    And eke out our performance with your mind.”
    —William Shakespeare (1564–1616)

    “..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.