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The NII Expense Reimbursement Rule panels allow you to create and maintain expense reimbursement tier rules for use with net investment income distributions. The NII expense reimbursement tier rule allows a fund to waive expenses to separate waiver accounts if expenses exceed income in a fund that elects to fully distribute net income.

During NII daily distribution processing, the system calculates tier reimbursements for master fund entities that elect to absorb negative net income by reimbursing expenses and have an NII expense reimbursement tier rule set up. The system first posts the reimbursement balance to the expense waiver account specified for tier 1, then posts the reimbursement balance to the expense waiver account specified for tier 2, and so on. If all tier levels are exhausted, it books the remaining reimbursement balance to the default fund dividend expense reimbursement account.

After you create an NII expense reimbursement rule, you can assign it as the Expense Reimbursement Tier Rule for one or more master funds. For more information,

see Set Up

Master

Funds for

NII Distributions.