What is a highwater mark and how do you apply it to Arbidyne Managed Account Service?
A high-water mark is the highest peak in value that your Managed Account has reached. With a high-water mark in place, you pay a fee that only covers the amount the fund earned between the point of entry and its highest level.
Please refer to the following table for a highwater mark calculation:
|Item||Month 1||Month 2||Month 3||Month 4|
|High Water Mark||$0||$15,000||$25,000||$25,000|
|Performance fee payable?||Yes||Yes||No||No|
|Performance fee amount (33% for Australian clients inclusive of GST)||$4,950||$3,300||NA||NA|
|Performance fee amount (30% for international clients)||$4,500||$3,000||NA||NA|