📊High-Water Mark Evaluation Guidelines

• High-Water Mark The High-Water Mark is evaluated based on the highest asset value recorded at the previous settlement time.

• How the High-Water Mark Works The High-water mark is adjusted by comparing the asset value at the settlement time to the highest asset value recorded at the previous settlement time. If the current asset value surpasses the previous High-Water Mark, a new High-Water Mark is established, and the performance fee is then calculated based on this updated value.

• Example

  

  [Figure 1] Calculation of High Water Mark Updates and Settlement Amounts Based on Overall Asset Valuation

  A	update	-	start
  B	A maintained	0	A-B<0 Did not exceed
  C	A maintained	0	C-B=0 Did not exceed
  D	D updated	(D-C) * fee Rate	D-A > 0 Exceed
  E	E updated	(E-D) * fee Rate	E-D > 0 Exceed
  F	E maintained	0	F-E < 0 Did not exceed

  ⚠️ Important Notice: The update of the High Water Mark is determined based on the asset value at the settlement time. Therefore, even if the asset value temporarily exceeds the High-Water Mark during the settlement period, performance fees will not be charged unless the final asset value at the settlement date exceeds the High-Water Mark.

  • Performance Fee Calculation Method Performance fees will be charged on the gains when the asset value at the settlement time exceeds the previous High-Water Mark. The performance fee is calculated as follows:

  Performance Fee = (Value at Settlement - Previous High Water Mark) * Performance Fee Rate