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An analyst gathers the following information about a hedge fund:
| Beginning-of-year assets under management (AUM) | £200,000,000 |
|---|---|
| Management fee (based on end-of-year AUM before fees) | 2% |
| Incentive fee | 10% |
| Soft hurdle rate | 5% |
| Annual return before fees | 20% |
If the incentive fee is calculated independently of the management fee, total fees for the year are: