Expense waivers represent the amount the fund waives or assumes in order to keep the funds actual expenses low. Waivers allow the fund to set a limit or cap on the amount of expenses charged to shareholders.
You can waive an expense whenever you set up a variable expense. At a minimum, you can specify an expense limit/cap, a waiver expiration date, and a waiver account when you create a variable expense. You can choose a percentage of a variable expense for the system to waive during the accrual process rather than accruing the full amount and reimbursing the fund if expenses over accrue during the accrual period.
In some instances, an expense waiver uses its own net asset tier to calculate the amount of variable expense to waive. To accommodate those instances, you can create waiver tiers. Then, when you set up a variable expense, you can select a net asset tier rule specifically for waivers. If an expense waiver is linked to a net asset tier rule, the system calculates the waiver using the net asset and basis points tier of the rule. The system processes waiver tiers like it processes normal expense waivers and processes them with expenses.
In addition, you can set up a waiver to allow for 100% of the associated variable expense to be waived. BASIC OR SPECIAL? HOW?
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