The accrual basis of performance reward means that when the cumulative net value of fund shares reaches a new high on each accrual date, a certain proportion of the highest cumulative net value of fund shares beyond the historical accrual date is extracted as performance reward and deducted from the overall assets of the fund. Performance reward means that the fund manager extracts a certain percentage of income as performance reward according to the operation situation during the fund operation. Its purpose is to make the interests of fund managers and investors tend to be consistent. Generally speaking, only after investors get a certain income, managers have the opportunity to get additional returns.

The content of this article comes from: China Law Publishing House "General Knowledge Series of Legal Life"