Hurdle Rate

Hurdle rate is a minimum return or income threshold that must be met before a specified incentive fee begins to accrue.

Why this matters to income investors

The fee threshold determines when an adviser begins earning an incentive fee.

How to use hurdle rate in your research

Read the fee formula and its base in the latest filing. Calculate what the charge takes from assets or earnings, then check whether waivers are temporary and whether the remaining income supports distributions.

This material is general education and information, not individualized investment, tax, or legal advice.