Those performance fees are normally for profits sometimes losses over a benchmark......
benchmark-Some low, some high.......if the fund is bench-marked to the asx200 which gained 11% for the period....and the fund produced a 15% return.....there would be a % of the 4% difference payable to the fund......for out-performance........
Some still pay on out performance on a negative return.....ie... asx200 returns -8% and fund returns -5% ....there would be a % of the 3% difference payable to the fund......for out-performance........a practise that should be outlawed imo........especially in a LIC/Fund with a shorting capacity......
