Investors in funds Management (PAMM) only incur Performance Fees when their investment generates actual profits during a billing cycle.
When Performance Fees Are Deducted
The Performance Fee is automatically calculated and deducted from your investment profits at the conclusion of each billing period. If you choose to withdraw your investment before the billing period ends, the Performance Fee will be deducted immediately upon withdrawal. However, it's important to note that the funds Manager receives this fee only at the end of the regular billing period, not at the time of your early withdrawal.
High Water Mark Protection
If your investment experiences a loss during any billing period, you are protected by the High Water Mark mechanism. This means no Performance Fee will be charged until your investment recovers and generates new profits that exceed the previous highest value. You only pay Performance Fees on genuine gains beyond any prior losses.