Manage Waivers for Expenses

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 or a group expense based on 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. You can set up a waiver to allow for the system to waive up to 100% of the associated variable expense. 

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 for variable expenses. Then, when you set up a variable expense, you can select a net asset tier rule specifically for waivers. When you link an expense waiver 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 Eagle's investment accounting solution, you can create expense level waivers to manage simple waiver processing scenarios. Alternately, you can use special waivers to process more complex waivers.