What is a ‘High-Water Mark’?

The performance fee is subject to a “high water mark” which is your initial investment to begin with, and then increases when any outperformance fee is paid – eg if your portfolio outperforms the benchmark by 2% and a 0.2% outperformance fee (10% of the 2%) is paid on that, the high watermark will adjust so that there will need to be further outperformance beyond that 2% before any further performance fee will be paid (so you don’t pay multiple performance fees on an individual period of performance).