---
title: How is the Dynamic ETFs HWM (High Water Mark) calculated?
description: If the net asset value falls in some period, the success fee would not be charged
---

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# How is the Dynamic ETFs HWM (High Water Mark) calculated?

## 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:

![](https://lh4.googleusercontent.com/wm9-4KbpkHiWjpLnObPJFyivVzCQLhtfZeKKMnIRAP2x37dbO-1tJeVuQ5xdJG8jHYDTvcKnff0Db73SqeS_cHO9-_8HEax8NwzLQ-8XmvHUo4DYQt_J2BuYsxdM0izaxcgv-RP9dRg8jHOjNw0c7Lo)

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