Why Hasn't My Performance Fee Been Paid?

This fee is paid to the fund manager as a reward for their successful management of the fund. However, it is not uncommon for investors to find themselves asking, "Why hasn't my performance fee been paid?"

The answer to this question may be due to a concept known as the high water mark. This is a rule that states that the fund manager must first cover any losses incurred by the fund before they can receive their performance fee. In other words, if the fund has lost money since the last time the performance fee was paid, then the fund manager must first make up those losses before they can receive their fee.

In summary, if you are asking why your performance fee hasn't been paid, it may be because the fund manager must first cover any losses incurred by the fund before they can receive their fee. This is known as the high water mark and is a standard practice in the industry.