1. The so-called high water level method refers to that when the accumulated net value of fund shares reaches a new high on each performance reward accrual day, a certain proportion (generally 20%) of the highest accumulated net value of fund shares on the historical performance reward accrual day is accrued as performance reward and deducted from the fund assets. A very important point of the high water level method is that only when the performance of the fund exceeds the best level in the history of the fund can the fund manager extract the relevant remuneration according to the income.
To give a simple example, the best net performance of a fund in history is 1.4 yuan, and its net performance drops to 1.3 yuan in the second year. Although the fund made a profit of 30% compared with the issue price in the second year, the fund manager did not get the performance commission. Because the net fund value in the second year does not exceed the value of 1.4 yuan in the first year, only when the net fund value exceeds the high water level of 1.4 yuan, for example, the net fund value in the second year is 2.0, can the fund accrue performance compensation, but the high water level is correspondingly raised to 2.0.
There are two ways to calculate the rate of return of money funds, namely, "the rate of return per 10,000 funds in one period" and "the annualized rate of return in the last seven days". The former refers to the actual rate of return in this period, and the latter refers to the annualized rate of return in the last seven days. According to your example, your income today is 0.956 1 yuan, and tomorrow's income depends on tomorrow's specific operation. The money fund will settle the income every day, but it will be converted into shares to be transferred. The face value of the fund share is always 65,438+0 yuan, but generally after a period of time (about half a month), the fund manager will convert the accumulated share to be transferred into the fund share. Money market funds mainly invest in liquid money market instruments such as bank time deposits, certificates of deposit and short-term low-risk bonds. It is almost impossible to lose money by using performance calculation method as cost amortization method.