This is a possible situation. When investing into a Portfolio, the total result for the trading period (month) may be zero or even positive, but since the Portfolio consists of several managers and the Investor pays a remuneration not to the whole Portfolio but to each Manager for profitable trading, provided that the first Manager trades positively and the second one - negatively, the Investor still needs to pay the remuneration to the first manager (for the profit he made). As a result, the Index will have a zero or positive result, and the investor, in turn, will be in the negative.
Let's review an illustrative example.
Suppose an investor has invested 3,000 USD into a Portfolio. At the end of the trading period (Friday, preceding the monthly rollover, 23:50 EET time) equity of the investor will also be 3 000 USD.
The Portfolio consists of 4 managed accounts, whose trading results for the investor for the period under consideration were 0 USD, 0 USD, +100 USD, -100 USD, respectively. Remuneration (Performance fee) of managers according to the offer is 12%.
On the day of the monthly rollover, there will be remuneration payout to the managers, who traded profitably at the end of the trading period. As a result, the investor's equity will be equal to 2,988 USD (3,000 + 100 * 0.88 - 100 = 2,988). The manager, who has brought a loss to the investor, will not receive the reward until he compensates the loss with profitable trading.