The performance fee for the LIC does have a high watermark...

  1. 1,117 Posts.
    lightbulb Created with Sketch. 14
    The performance fee for the LIC does have a high watermark structure. That said, the structure of the performance fee is poor, given it is charged against net absolute returns . The investment strategy generates equity return characteristics, so as it stands the hurdle for the performance fee is too low and out of step with the strategy.
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.