"Dear David, no doubt you have spotted the sudden surge in the price of Atlantis New China Fortune Fund. Maybe a typo? Any thoughts?"

David Fuller's view Thanks for pointing this out. I had not seen it as I seldom look at fund prices in my personal portfolio more than once or twice a month. On seeing the jump in valuation I phoned Atlantis and spoke to their Marketing Manager, Sarah Allen. I think that you and other subscribers holding the Atlantis New China Fortune Fund will be interested in her answer, confirmed by email:

"As you will be aware, the Fund charges a performance fee. This is paid to the Fund Manager annually. A performance fee was paid for the period from inception to 31 December 2009, having accrued from the Fund during the year. However, the Fund was below the high watermark of the old Atlantis China Fortune Fund and therefore, while the payment of the fee was in line with the Fund's prospectus, the Fund Manager has decided to return that fee to investors. The fee was credited to the Fund as a lump sum on 3 August, resulting in a 14% increase in the NAV."

I am glad that Atlantis sorted this out, not least because one important reason why I stayed with the Fund following the 2008 problem with unlisted shares is that I knew, or thought I knew, that there would be no performance fee until a major recovery had not only occurred but also taken the valuation to a new all-time high. A "14% increase in the NAV" shows us just how materially performance fees can affect your investments.