Fees, equalisation and high-water marks
For each fee record the legal basis, payee, fund/class, rate, base, tiers, minimum, taxes, start/end dates, settlement cycle, currency, approver and invoice status. NAV accruals should not wait for an invoice.
For management fees confirm whether the base is opening, closing or average NAV, commitment or invested cost; then test day count, leap year, flows, waiver periods, tiers and rebates. The reviewer reconstructs the terms from fund documents rather than merely checking that spreadsheet formulas run.
High-water mark
Control the inception reference, loss carry-forward, distributions, series or investor lots, crystallization, redemptions, pre/post-fee performance and FX. Do not apply a fund-level HWM to every investor without testing the fund's mechanism.
Equalisation
Series accounting and equalisation credit/deficit methods seek fair performance-fee allocation across entry dates. Test new and existing investors under the same economic outcome; subscriptions, partial/full redemptions and crystallization; and the tie between ledger expense, investor detail and manager payable.
Lock formulas and inputs, version the model, test known outcomes, independently reperform representative investors and report every manual override.