Performance-related fee charged by the fund company in addition to the normal management fee. This fee is charged on the difference between the performance achieved and the performance of a benchmark index or a minimum return, and is only charged when this difference is in the investor’s favour.
Notice: The contents of this terminology collection Lawpedia® with a focus on business law (especially financial market law) have been researched with great care and compiled on the basis of an extensive flash card, training materials and literature. The various sources (as far as they could be found) can be found in the abbreviations and source references. References to other sources are welcome. Despite the care taken, the provider cannot accept any liability for the accuracy, completeness and topicality of the information provided. The information is of a general nature in particular and does not constitute legal advice in individual cases.