HWM Enhancement

Release Note

Introduction

In performance fees calculation HWM calculated in current round after deduction and this is used for the calculation in the next round.

In current scenario HWM value is not editable. Now we are giving provision to edit the same. In case of the adjustment of the fees HWM can be edited and the performance fees can be calculated on the basis of the updated value.

In this document calculation for HWM are described in the detail.

Edit HWM

Edit HWM option is available in the allocations for the broker admin as shown below:

When broker admin clicks on the “Edit HWM” option then following screen gets open, where broker admin can update the value as shown below:

Current HWM is displayed, broker admin can enter updated value i.e. New HWM.

When New HWM is updated then following message is displayed:

View HWM

Changes made in the HWM values are maintained under View HWM option as shown below:

When broker admin clicks on the “View HWM” option then following page gets open in the new tab as shown below:

Details about the old value and updated value are displayed as shown in the figure.

Calculations after updating the HWM

Scenario 1: When HWM is updated from 0 to some new value:

Consider the following example for allocation ID 8529:

Allocation ID	Fees	Current Balance	HWM	HWM Date	Deductible	HWM After deduction
8529	0.04	31894.22	0	NA	1215.77	30678.45

Now we update the HWM value to 2000 then values calculated as follows:

Allocation ID	Fees	Current Balance	HWM	HWM Date	Deductible	HWM After deduction
8529	0.04	31894.22	2000	43885	1195.7688	30698.4512

Formulas used are as follows:

Deductible Performance fees after updating new HWM

= (Current Balance-HWM) * Performance fees percentage

In above case it is calculated as follows

= (31894.22-2000) *4%

= (29894.22) *4%

= 1195.22

HWM After deduction is calculated as follows:

= Current Balance-Performance fees calculated

=31894.22-1195.76

=30698.45

Scenario 2: Additional deposit to the allocation:

Allocation ID	Fees	Current Balance	HWM	HWM Date	Deductible	HWM After deduction
8346	0.11	168224.8	36371.38	43524	14250.88	153973.92

Now 2300 deposit is added and HWM is updated and HWM is updated to the 35000 then values are calculated as follows:

Allocation ID	Fees	Current Balance	HWM	HWM Date	Deductible	HWM After deduction
8346	0.11	165924.8	35000	43885	14401.728	151523.072

In this case current balance is calculated as follows

=Current Balance – Additional deposit to the allocation

=168224.8-2300

=165924.8

Other calculations are same as explained in the scenario 1

Scenario 3: Withdrawal from allocation

In case of withdrawal we are deducting performance fee first before withdrawing funds from the allocations. There is no change in the formula we are using same as explained above.