| Assumptions | |
|---|---|
| Capital Contribution (Rs.) | |
| Management Fee (%age per annum) |
% |
| Performance (%age per annum) | % |
| Hurdle Rate of Return (%age per annum) | % |
| Other Expenses (%age per annum) | % |
| Brokerage and Transaction Cost | % |
| Hybrid Fee Illustration | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Gain/Loss Scenario | % |
% |
% |
% |
% |
| Capital Contributed / Assets under Management | 5,000,000 | 5,578,941 | 5,950,407 | 5,950,407 | 6,639,394 |
| Gain / (Loss) on Investment based on the Scenario | 750,000 | 557,894 | -297,520 | 892,561 | 663,939 |
| Gross Value of the Portfolio at the end of the year | 5,750,000 | 6,136,835 | 5,652,887 | 6,842,969 | 7,303,333 |
| Daily Weighted Average assets under management computation** | 5,375,000 | 5,857,888 | 5,801,647 | 6,396,688 | 6,971,364 |
| Other Expense | -26,875 | -29,289 | -29,008 | -31,983 | -34,857 |
| Brokerage and Transaction Cost | -10,750 | -11,716 | -11,603 | -12,793 | -13,943 |
| Management Fees | -133,434 | -145,422 | -144,026 | -158,798 | -173,064 |
| Total Charges before Performance Fee | -171,059 | -186,427 | -184,637 | -203,575 | -221,864 |
| Gross Value of the Portfolio before Performance Fee | 5,578,941 | 5,950,407 | 5,468,250 | 6,639,394 | 7,081,470 |
| High Water Mark Value (HWM) *** | 5,000,000 | 5,578,941 | 5,950,407 | 5,950,407 | 6,639,394 |
| Hurdle Rate of return or as defined in the PMS agreement | 0 | 0 | 0 | 0 | 0 |
| Gross Value of the Portfolio before Performance fee is greater than High Water Mark Value + Hurdle rate of return | Yes | Yes | No Pfee | Yes | Yes |
| If Yes, proceed to performance fee calculation else 0 (zero) performance fee for the period) | |||||
| Portfolio return subject of Performance Fee | 578,941 | 371,467 | 0 | 688,987 | 442,076 |
| Performance Fee | 0 | 0 | 0 | 0 | 0 |
| Net value of the Portfolio at the end of the year after all fees and expenses | 5,578,941 | 5,950,407 | 5,468,250 | 6,639,394 | 7,081,470 |
| % Portfolio Return post fees and expenses | 11.58% | 6.66% | -8.10% | 11.58% | 6.66% |
| High Water Mark to be carried forward for next year. When performance fee is charged from the portfolio itself. | 5,578,941 | 5,950,407 | 5,950,407 | 6,639,394 | 7,081,470 |
Notes
- In the illustration, Management fee is assumed to be charged annually. However, the Portfolio Manager charges the Management fee on a quarterly basis, as defined in the PMS agreement and as permitted under SEBI regulations.
- **Portfolio Manager shall charge Management Fee on Average portfolio value for the management fee period as defined in the PMS agreement and permitted under SEBI regulations, as amended from time to time.
- Returns are assumed to be generated linearly through the year.
- Other Expenses includes Audit Fee/ Bank charges / Fund Accounting charges / Custody Fee / demat charges or other miscellaneous expense, to be charged at actual.
- Brokerage and transaction cost for the illustration purpose is charged on the Average AUM. However, Brokerage and Transaction cost are charged based on the actual trades.
- All Fees and charges are subject to GST.
- ***For this illustration, the High Water Mark for the 1st Year is the Capital invested. From the second year onwards, if the performance fee is charged, it’s the year-end closing value after all charges and fees; else it remains the same. However, in actual, the High Water Mark is defined in the PMS agreement and may differ from this illustration.
- For this illustration, the Hurdle rate is calculated on the Higher of (HWM or previous year closing NAV). However, in actual, the Hurdle Rate of return is defined in the PMS agreement and may differ from this illustration.
- The Hurdle rate is prorated in case the performance fee period is less than 1 year OR if there are inflow/outflows from the portfolio.
- The above illustration shows the High Water Mark to be carried forward in different scenarios for equal and fair treatment to the investor.