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HIGH WATER MARK CALCULATION:
A clients may deposit, for example, $50,000 and the
performance fee is set at 30%. At the end of the first
month, the balance on the account is $52,000. First
month profit for Money Manger is $600 (30% of $2000)
-$50,000 is the high watermark. The beginning balance
for client becomes $51,400 (or $52,000 - $600) and this
becomes the new high water mark. On the second month,
the ending balance on the account is $49,000. No performance
fee is paid; the high water mark remains $51,400. This
example assumes that there were no new deposits (which
increase the high water mark) or new withdrawals (which
decrease the high water mark)
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