# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
High-Water Mark

This is the highest net asset value (NAV) that a fund has reached and for which a performance fee was paid.

Using a high-water mark prevents the fund manager from receiving any performance fees on downside outperformance. It also means that investors do not end up paying performance fees more than once for the same increase in their fund's NAV (which is something that could otherwise happen in a fluctuating or sideways market).

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