In the following example, a fund has three share classes and each one is set up with an expense reimbursement. Share class A and B are below the expense cap, while share class C is above the expense cap. Below this table, some notes describe each share class scenario.
Fund | RC72 | ||
|---|---|---|---|
Date | 2/1/2016 | ||
CLASS | A | B | C |
Prior Night Net Assets | 225,000,000.00 | 150,000,000.00 | 125,000,000.00 |
EXPENSE CAP | 0.40 | 0.40 | 0.40 |
Recoupment Indicator | CLASS | CLASS | CLASS |
CONTRACTUAL CAP | 0.41 | 0.41 | 0.4250 |
Fee Limit | 245,901.64 | 163,934.43 | 136,612.02 |
Contractual Cap Limit | 252,049.18 | 168,032.79 | 145,150.27 |
GROSS EXPENSES $$ | (240,000.00) | (160,000.00) | (155,000.00) |
REIMBURSEMENT/RECOUPMENT | 5,901.64 | 3,934.43 | (18,387.98) |
Contractual Cap Value | (9,849.73) | ||
Recoupment THRESHOLD | 200,000,000.00 | 200,000,000.00 | 100,000,000.00 |
Above Recoupment Threshold? | YES | NO | YES |
Process Recoupment | TRUE | FALSE | FALSE |
Prior Year Recoupment Balances Before Processing | |||
Recoupment Processing, | |||
Year | |||
2016 | 0 | 0 | 0 |
2015 | 150,000.00 | 65,000.00 | 12,000.00 |
2014 | 125,000.00 | 75,000.00 | 8,500.00 |
Prior Year Recoupment Balances After Processing | |||
Year | |||
2016 | 9,849.73 | ||
2015 | 150,000.00 | 65,000.00 | 12,000.00 |
2014 | 119,098.36 | 75,000.00 | 8,500.00 |
Share Class A. This class has a recoupment amount of $5,901.64. (Gross expenses of $240,000.00 – Fee limit of $245,901.64). A contractual cap is not calculated because the gross expenses are below the fee limit. The NAV Component for this record is Prior Night Net Assets, which are 225,000,000.00. This amount is greater than the recoupment threshold value of 200,000,000.00, so the system processes the recoupment. The Prior Year Recoupment Recovery Order recoupment processing election is Target Prior Year Only/Oldest Year 1st, going back 2 years. The 5,901.64 is taken from the 2014 prior year balances, which leaves the remaining balance for 2014 as $119,098.36 (125,000.00 – 5,901.64)
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