Are there funds that charge performance fees?

A performance fee is a fee the asset manager receives, calculated in a predetermined way linked to the fund's performance.

The FSCMA prohibits performance fees in principle but allows them for private funds, or for public funds in cases prescribed by law, such as where they pose no problem for investor protection. Funds that charge performance fees must state the calculation method and related details in the prospectus and the collective investment rules, so check these before investing.