quick calc query

H

Hino

Guest
Can someone explain briefly

investment into a 2 year scheme IRR of 21% . Amount 100k

Charges: 20% of any return over 10% compound per annum

What are the charges and what is the return
 
Re: quic calc query

Hino, 0 is answer. 21% over 2 years is precisely the 10% p.a. hurdle rate so no performance bonus kicks in.
 
Thanks Harchibald,
last one


Can someone explain briefly

investment into a 2 year scheme IRR of 21% . Amount 100k

Charges: 20% of any return over 8% compound per annum

What are the charges and what is the return
 
Hino, I feel you are leading the witness here maybe;)

The excess return would be 4.4%

The bonus would be 20% of this, i.e. .09%

And the net return to the punter would be 20.01%
 
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