For Spectra Group

Investment 10,000,000.00
Setup fee 0.75%
Hurdle rate per quarter 2.41%
Hurdle rate per year 10.00%
Management fee 1.00% Charged Quarterly
Performance fee per quarter 10.00%
of returns over hurdle
with high watermark
Other fees and deductions Nil
Calculation for end of Quarter performance performance fee
q1 9% 87,275.00
q2 8% 89,922.18
q3 0% -
q4 -7% -
Calculation if performance fee
charged yearly 10% 100,000.00
Scenario 1
value of
investment post
performance fee all other fees
value of investment
post all fee performance performance fee
10,812,725.00 27,031.81 10,785,693.19 -7% -
11,558,626.46 28,896.57 11,529,729.90 0% -
11,529,729.90 28,824.32 11,500,905.57 8% -
10,695,842.18 26,739.61 10,669,102.58 9% 34,998.88
What we get post
performance fee
at end of year pre
tax 10,695,842.18
What we get post
all fees and
deductions at
end of year pre
tax 10,669,102.58
10,900,000.00 109,000.00 10,791,000.00 10% 100,000.00
What we get post
performance fee
at end of year pre
tax 10,900,000.00
What we get post
all fees and
deductions at
end of year pre
tax 10,791,000.00
Scenario 1 Scenario 2
value of investment
post performance
fee all other fees
value of
investment post
all fee performance performance fee
9,300,000.00 23,250.00 9,276,750.00 2% -
9,276,750.00 23,191.88 9,253,558.13 -3% -
9,993,842.78 24,984.61 9,968,858.17 20% 151,899.73
10,831,056.52 27,077.64 10,803,978.88 10% 131,561.48
What we get post
performance fee
at end of year pre
tax 10,831,056.52
What we get post
all fees and
deductions at
end of year pre
tax 10,803,978.88
10,900,000.00 109,000.00 10,791,000.00 29% 290,000.00
What we get post
performance fee
at end of year pre
tax 10,900,000.00
What we get post
all fees and
deductions at
end of year pre
tax 10,791,000.00
Scenario 2 Scenario 3
value of investment
post performance fee all other fees
value of investment
post all fee performance performance fee
10,200,000.00 25,500.00 10,174,500.00 10% 97,250.00
9,869,265.00 24,673.16 9,844,591.84 -15% -
11,661,610.47 29,154.03 11,632,456.45 7% -
12,664,140.61 31,660.35 12,632,480.26 7% -
What we get
post
performance fee
at end of year
pre tax 12,664,140.61
What we get
post all fees and
deductions at
end of year pre
tax 12,632,480.26
12,610,000.00 126,100.00 12,483,900.00 9% -
What we get
post
performance fee
at end of year
pre tax 12,610,000.00
What we get
post all fees and
deductions at
end of year pre
tax 12,483,900.00
Scenario 3 Scenario 4
value of
investment post
performance fee all other fees
value of investment
post all fee performance performance fee
10,902,750.00 27,256.88 10,875,493.13 5% 47,375.00
9,244,169.16 23,110.42 9,221,058.73 6% 62,345.49
9,866,532.84 24,666.33 9,841,866.51 -3% -
10,530,797.17 26,326.99 10,504,470.18 -1% -
What we get
post
performance
fee at end of
year pre tax 10,530,797.17
What we get
post all fees
and deductions
at end of year
pre tax 10,504,470.18
10,900,000.00 109,000.00 10,791,000.00 7% -
What we get
post
performance
fee at end of
year pre tax 10,900,000.00
What we get
post all fees
and deductions
at end of year
pre tax 10,791,000.00
Scenario 4 Scenario 5
value of
investment post
performance fee all other fees
value of investment
post all fee performance performance fee
10,452,625.00 26,131.56 10,426,493.44 3% 27,425.00
10,989,737.55 27,474.34 10,962,263.21 3% 28,795.74
10,633,395.31 26,583.49 10,606,811.83 3% 30,232.99
10,500,743.71 26,251.86 10,474,491.85 3% 31,739.84
What we get
post
performance
fee at end of
year pre tax 10,500,743.71
What we get
post all fees
and deductions
at end of year
pre tax 10,474,491.85
10,700,000.00 107,000.00 10,593,000.00 12% 120,000.00
What we get
post
performance
fee at end of
year pre tax 10,700,000.00
What we get
post all fees
and deductions
at end of year
pre tax 10,593,000.00
Stable Scenario Scenario 5
value of investment
post performance fee all other fees
value of investment
post all fee
10,272,575.00 25,681.44 10,246,893.56
10,525,504.63 26,313.76 10,499,190.87
10,783,933.61 26,959.83 10,756,973.77
11,047,943.15 27,619.86 11,020,323.29
What we get
post
performance
fee at end of
year pre tax 11,047,943.15
What we get
post all fees
and
deductions at
end of year pre
tax 11,020,323.29
11,080,000.00 110,800.00 10,969,200.00
Stable Scenario
Illustration: Performance Fee calculation with Hurdle rate & High Water Mark
Hurdle Rate: Quarterly 2.41%
Performance Fee % 10%
Management Fee 1%
Q1 Q2
A Opening NAV (Rs) 100.00 107.85
Gain/Loss (Rs) 9.00 8.63
% Gain/Loss 9.0% 8.0%
Management Fee (if any) (0.27) (0.29)
B Closing NAV (Rs) 108.73 116.19
C Opening High Water Mark (HWM) 100.00 110.45
D Quarterly Return (Absolute), (= "B"-"A") (Rs) 8.73 8.34
E Quarterly Return % (Absolute), (= "D"/"A") 8.73% 7.73%
F Is return "E" >2.41% Yes Yes
G Is Closing NAV in "B" > "C" (HWM) Yes Yes
H Performance Fee (only if F & G both are "Yes"),(= D*10%)/(= D*15%) (Rs) 0.87 0.83
I NAV Post Performance Fee, (="B" - "H") (Rs) 107.85 115.36
J Gain Post Performace fee (Rs) 7.85 7.50
K Closing High Water Mark (HWM), (if "H">0,then "I", else "C") (Rs) 107.85 115.36
L NAV for Performance Fee 100.00 115.36
The following points to be noted :
a) If an investor exits during a particular quarter, then also Performance Fee (pro-rata basis corresponding to 2.41% per quarter)
will be charged for the broken period return subject to Hurdle Rate (pro-rata) & High Water Mark
b) Please note for calculation purposes we have ignored the taxation impact.
c) Please note all the calculations in the above illustration are based on assumptions. This has no bearing or reference to what happens in the real scenario.
Scenario 1
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
115.36 115.07 100.00 92.77 92.54 99.69 100.00 101.75 98.45
- (8.05) (7.00) - 7.40 8.97 2.00 (3.05) 19.69
0.0% -7.0% -7.0% 0.0% 8.0% 9.0% 2.0% -3.0% 20.0%
(0.29) (0.27) (0.23) (0.23) (0.25) (0.27) (0.26) (0.25) (0.30)
115.07 106.75 92.77 92.54 99.69 108.39 101.75 98.45 117.84
118.14 120.99 100.00 102.41 104.88 107.41 100.00 102.41 104.88
(0.29) (8.32) (7.23) (0.23) 7.15 8.70 1.75 (3.30) 19.39
-0.2% -7.2% -7.23% -0.25% 7.7% 8.7% 1.75% -3.24% 19.7%
No No No No Yes Yes No No Yes
N.A. N.A. N.A. N.A. No Yes N.A. N.A. Yes
0.00 0.00 - 0.00 0.00 0.35 - 0.00 1.54
115.07 106.75 92.77 92.54 99.69 108.04 101.75 98.45 116.30
(0.29) (8.32) (7.23) (0.23) 7.15 8.35 1.75 (3.30) 17.85
118.14 120.99 100.00 102.41 104.88 108.04 100.00 102.41 116.30
115.36 115.36 100.00 100.00 100.00 108.04 100.00 100.00 116.30
a) If an investor exits during a particular quarter, then also Performance Fee (pro-rata basis corresponding to 2.41% per quarter)
c) Please note all the calculations in the above illustration are based on assumptions. This has no bearing or reference to what happens in the real scenario.
Scenario 1 Scenario 2 Scenario 3
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
116.30 100.00 108.75 92.21 98.42 100.00 104.26 109.65 106.09
11.63 10.00 (16.31) 6.45 6.89 5.00 6.26 (3.29) (1.06)
10.0% 10.0% -15.0% 7.0% 7.0% 5.0% 6.0% -3.0% -1.0%
(0.32) (0.28) (0.23) (0.25) (0.26) (0.26) (0.28) (0.27) (0.26)
127.61 109.73 92.21 98.42 105.04 104.74 110.24 106.09 104.77
119.10 100.00 111.37 114.06 116.81 100.00 106.78 112.29 114.99
11.31 9.72 (16.54) 6.21 6.63 4.74 5.98 (3.56) (1.32)
9.7% 9.72% -15.21% 6.7% 6.7% 4.74% 5.74% -3.2% -1.2%
Yes Yes No Yes Yes Yes Yes No No
Yes Yes N.A. No No Yes Yes N.A. N.A.
1.13 0.97 0.00 0.00 0.00 0.47 0.60 0.00 0.00
126.48 108.75 92.21 98.42 105.04 104.26 109.65 106.09 104.77
10.18 8.75 (16.54) 6.21 6.63 4.26 5.38 (3.56) (1.32)
126.48 108.75 111.37 114.06 116.81 104.26 109.65 112.29 114.99
126.48 100.00 100.00 100.00 100.00 100.00 109.65 109.65 109.65
Scenario 3 Scenario 4 Scenario 5
Q1 Q2 Q3 Q4
100.00 102.47 105.00 107.59
3.00 3.07 3.15 3.23
3.0% 3.0% 3.0% 3.0%
(0.26) (0.26) (0.27) (0.28)
102.74 105.28 107.88 110.54
100.00 104.94 107.53 110.18
2.74 2.81 2.88 2.95
2.74% 2.74% 2.7% 2.7%
Yes Yes Yes Yes
Yes Yes Yes Yes
0.27 0.28 0.29 0.30
102.47 105.00 107.59 110.24
2.47 2.53 2.59 2.66
102.47 105.00 107.59 110.24
100.00 105.00 107.59 110.24
Stable Scenario