Method of Computing the Expense Waiver Sample Clauses
The "Method of Computing the Expense Waiver" clause defines how and under what conditions a party, typically an investment manager or fund sponsor, will reduce or waive certain fees or expenses. This clause outlines the specific formula or calculation method used to determine the amount of expenses to be waived, such as referencing a percentage of assets under management or capping total fund expenses at a set level. By clearly specifying the computation method, this clause ensures transparency and predictability for both parties, helping to prevent disputes and ensuring that investors or clients benefit from agreed-upon cost reductions.
Method of Computing the Expense Waiver. Each day the Fund Operating Expenses shall be subtracted from the Fund Investment Income to produce the daily Net Investment Income. If the daily Net Investment Income is below zero for any day, the Investment Adviser shall first waive or reduce its advisory fee for such day by an amount sufficient to bring the Net Investment Income to zero. If the amount of the waived or reduced advisory fee for such day is insufficient to bring the Net Investment Income to zero, the Investment Adviser shall also pay Fund expenses or reimburse the Fund an amount that, together with the waived or reduced advisory fee, is sufficient to bring the Net Investment Income to zero.