Economics · Banking and Finance
When a bank manages a client's portfolio under a Portfolio Management Services (PMS) arrangement, the performance-linked fee structure is often subject to which mechanism to protect investors from paying fees for recovered losses?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Guaranteed return clause
- 2Fixed discount rate
- 3High Water Mark (HWM)✓
- 4Zero-sum agreement
Correct answer
High Water Mark (HWM)
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