Indexed Performance Charge

The "Indexed Performance Charge" is a fee associated with certain investment products, particularly those linked to the performance of a specific market index.

This charge is typically levied when the investment outperforms its benchmark index, and it's designed to compensate fund managers or financial institutions for delivering returns that exceed the index's performance.

The charge is often expressed as a percentage of the excess returns achieved above the benchmark.

For investors, the Indexed Performance Charge represents a cost tied to superior performance. In essence, it operates on a "pay-for-performance" principle: if the investment does not outperform the index, no charge is applied.