Schedule 10 - Omitted

Amortisation of initial issue expenses requires load schemes to amortise costs over scheme life and adjust for redemptions.

The Schedule prescribes treatment of initial issue expenses for mutual fund schemes: AMCs, trustees or sponsors may launch load, no-load or mixed schemes; partial-loads are treated as load. For closed-ended load schemes initial issue expenses must be amortised weekly over the scheme life, with adjustments for partial redemptions. Unamortised amounts may be included in NAV but are excluded from calculations of the AMC's investment management and advisory fees and from regulatory expense limits. Distribution charges are borne by the scheme for load schemes and by the AMC for no-load schemes.