What is Sharing Rate? (Coronation Fees)

[VG008]

Hi

Can someone please explain what sharing rate is?
In coronation's fee FAQ (Found here), they mention sharing rate.

Thank you

 

[Totempole]

It's essentially a cut of the profits Coronation will deduct for themselves when they outperform their predetermined benchmark.

If they underperform the sharing rate is irrelevant.

 

[VG008]

Thank you.

For a very basic example;

1. Once off investment for R1000.00 on 1st January 2014 into investment Fund A
2. At the 31st December 2014, the benchmark performance is 10%
3. At the 31st December 2014, Fund A performance is 30%
4. Sharing rate is 20%

The profit at the end of the year is R300.00.
So the sharing rate (which goes to the investment firm) is R60.00.

Do I understand correctly?