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The special waiver fund hierarchy rule has two expenses in this example:
Advisory/Management Fees
Administration Fees
The special waiver class hierarchy rule has four expenses in this example:
Administration Fees
Call Center Fees
Transfer Agent Fees
Sub-TA/Networking Fees
Share Class A
The system uses the NAV Component for share class A to retrieve the Total Net Asset amount of $94,820,273.70 and uses the Expense Limit/Cap of 0.013 to calculate the expense cap (94,820,273.70 x .013 / 366 = $3,367.93). The gross expense amount of $3,937.35 is over the expense cap and a waiver of $569.42 is needed. The sum of class hierarchy expenses ($51.82 + $2.97 + $16.42 + $74.57 = $145.78) is then virtually waived to determine if a total fund waiver is needed. Class A needs $423.64 from the total fund, so the system calculates the basis point impact (423.64 / 94,820,273.70 x 366) to compare against the other share classes. The system uses the amount with the highest impact to back into a total fund waiver. After the system waives total fund expenses according to the fund hierarchy, they will be allocated down to the share classes ($558.36) and deducted from the needed waiver amount ($569.42) to obtain the remaining amount ($11.06) for class hierarchy waivers. Share Class A only needs $11.06 after the fund waiver and the first class hierarchy expense (Administration Fees) posted $51.82 for daily expenses, so the system posts an Administration Fee Waiver for the $11.06 to complete special waiver processing.
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All three share classes did not have enough class hierarchy expenses to satisfy the waivers needed, so a total fund waiver is needed. The system uses the amount needed by Share Class B with the highest basis point impact to back into a total fund waiver amount (81.32 / .12168866322 = $668.26). The first fund hierarchy expense Advisory/Management Fees posted $3,558.97 for daily expenses, so the system posts a waiver for the $668.26 needed to complete total fund waiver processing.
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