​Management of Mutual Fund

18. Fees

Fees and expenses must be clearly specified in the scheme and prospectus. The total amount of all items combined must not exceed the maximum limits specified in the scheme and the prospectus of the offer for sale of the investment units.

​(1) For advertisement expenses that a mutual fund management company may collect from the mutual fund:

​(1.1) A maximum amount must be specified.

​(1.2) Collection of expenses for a sales promotion on the mutual fund is prohibited.

(2) Collection of management fees shall comply with either of the following rules:

​(2.1) A fixed rate or a percentage rate of the NAV or  net asset value of the mutual fund;

​(2.2) A performance based management fee rate.

​(3) Fees on each sales or redemption of investment units collect from the unitholders.

(4) The mutual fund management company wishes to collect fees or expenses at a higher rate than recent rate specified shall follow the rules as per the following details:

​​(a) Where the mutual fund management company wishes to collect fees or expenses at a higher rate within the ceiling rate specified in the scheme, the mutual fund management company shall inform the unitholders at least 3 business days before the effective date. .       

​(b) Where the mutual fund management company wishes to collect fees or expenses higher than the ceiling rate of the last 1year period from the day the company wishes to raise the rates:

​​(1) Higher than the ceiling rate for < 5%, the company shall notify the unitholders at least 60 days in advance of the collection before the effective date. 

​​(2) Higher than the ceiling rate for over 5%, the company shall obtain special resolution of the unitholders.    

(5) Where a mutual fund management company wishes to reduce fees or expenses, the company shall disclose the information to the unitholders widely through the appropriate method. At the minimum, the company shall publicize the information on its website and at every office of the company for the trading of the investment units and the office of the selling agents (if any).

​​(6) A maximum total amount of fees and all estimable expenses to be collected from a mutual fund must specified in the schemes and the prospectus of the mutual fund.