If the net asset value falls in some period, the success fee would not be charged
The watermark or HWM (High Water Mark) is a term used in portfolios and investment funds to ensure that investors do not have to pay success fees after a fall in the markets.
This calculation only affects the inbestMe Dynamic ETF portfolio (dynamic management).
An HWM guarantees that if the net asset value of the fund (or a portfolio in this case) fell over during an investment period (a month, a quarter or a year, as defined in the fund's prospectus portfolio), the success fee would only be applied on any performance that exceeds the highest level that the fund or portfolio had reached in a previous investment period.
The industry usually defines this calculation as a “reset” period, which in the case of inbestMe, implies two years.
You can see the graphical calculation below:
