Understand Assumption Fees

You can set up master funds to use a special waiver processing method of Assumption Fees with expenses.

When you use assumption fees, you set up a special waiver to process a second waiver, known as an assumption fee. The calculation of an assumption fee requires the completion of all expense processing, because the system checks the total fund gross expenses against a user defined expense cap that is also at the total fund level. If the total fund gross expenses exceeds the expense cap amount, then the system waives the user defined expense up to 100% of the net daily expense amount. If an amount remains after the first waiver, the system posts a second waiver as an assumption fee for the remaining amount.

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