Assumption Fee with Recoupment Example

In the following assumption fee example, you set an Expense Limit/Cap of 0.0045 for Total Fund and you select Advisor/Management Fees as the expense to waive.

The Total Fund Net Asset amount of $100,000,000 is multiplied by the Expense Limit/Cap of 0.0045 and divided by 366 days in the year to produce an expense cap of $1,229.51. The daily gross expense amount of $2,866.12 is greater than the expense cap so a waiver for $1,636.61 is needed. Advisor/Management Fees fully waives its daily expense amount of $1,366.12, which leaves $270.49 to be waived. The system posts the remaining $270.49 as an Assumption Fee to meet the expense cap.

If the fund is set up for special waiver recoupment, the Total Fund Net Asset amount of $100,000,000 is multiplied by the Contract Cap of 0.0055 and divided by the 366 days in the year to produce a recoupment cap of $1,502.73. The daily gross expense amount of $2,866.12 is greater than the recoupment cap of $1,502.73, so the system saves the $1,363.39 amount over cap to the recoupment table for future use.

Total Fund NAV	100,000,000.00	Number of Days in Year	366

Total Fund Expenses
ADVISORY/MANAGEMENT FEES	1,366.12
OTHER EXPENSES	1,500.00
Gross Expenses	2,866.12

Expense Limit/Cap	0.0045	Contract Cap	0.0055
Expense Cap	1,229.51	Recoupment Cap	1,502.73
Expense Over Cap	1,636.61	Recoupment Over Cap	1,363.39

ADVISORY/MANAGEMENT FEES	1,366.12
Remaining Amount	270.49

ASSUMPTION FEE	270.49
Remaining Amount

ADVISORY/MANAGEMENT FEES	1,366.12
ASSUMPTION FEE	270.49
Total Waivers	1,636.61