Fees and Conditions

Fees (commissions) for the purchase and sale

Sale and purchase fees are meant to cover unit sale/issuance and redemption costs and are calculated into the issue price and the redemption price paid by the investor.

Depending on the sum invested, investors in the Fund shall pay the following unit purchase fees, calculated as a percentage of the Fund’s NAV per unit:

Invested amount	Purchase fee
Up to BGN 100,000 including	1.00%
From BGN 100,000.01 to BGN 500,000 including	0.50%
From BGN 500,000.01 to BGN 2,000,000 including	0.20%
Above BGN 2,000,000	0.00%

"Invested amount" is the sum total of the value of all orders made by an investor concerning the purchase of Fund units, a lower fee being charged once a fee bracket threshold is passed, including on the order taking the investor over the threshold to the next bracket. The amount invested does not include sums contributed by the investor for the purchase of units to be bought back by the Fund.

"An investor" stands for all pension funds, managed by the same pension insurance company, as well as all collective investment schemes and close-end investment companies managed by the same asset management vehicle.

Depending on the investment period, investors in the Fund are charged the following unit purhcase/redemption fee, calculated as a percentage of the Fund’s NAV per unit:

Investment period	Redemption fee
Up to 12 months	1.00%
Between 12 and 24 months	0.50%
More than 24 months	0.00%

The investment period is the period between the date on which the acquired units are credited to the investor's subaccount linked to Expat Asset Management account at the Central Depository and the date of submission of the unit redemption order.

Investors are charged the following fees for additional services provided by Expat Asset Management:

• Transfer of units from a unitholder's subaccount with Expat Asset Management to his/her sub account with an investment intermediary, depository bank or a custodian bank – BGN 6 per transfer
• Issuance of a depository receipt copy – BGN 6
• Document shipment (depository receipt, transaction confirmation, etc.) – fee covering shipment costs of up to BGN 5

Bank Account

UniCredit Bulbank
IBAN BG39UNCR7000100EXPAT01
BIC UNCRBGSF
Details: Purchase of shares of MF

Expenses covered by the Fund (indirect investor expenses)

Those expenses are subtracted from Expat New Europe Stocks’ assets and are hence indirectly covered by all unitholders. Those are expenses that investors have to be aware of, when they invest in the Mutual Fund.

According to the Fund Rules, the fee charged by Expat Asset Management has two components. One is a fixed fee equivalent to 1.90% of the Mutual Fund’s NAV on an annual basis.

The second component is a high water mark fee, charged only in case the NAV per share for the current day is higher than both:

• The NAV per share for the last preceding day on which NAV was calculated, and
• The highest NAV per share reached until the current moment over the current calendar year

Each year, on 1 January, the yields for the previous year shall be taken as the basis for calculating the yields for the new calendar year. Over the first year of the Fund’s functioning, the reference date which will serve as the basis for calculating the yields, shall be the date on which the offering of the Fund’s units was initiated.

If the NAV per share on a particular business day is as described above, a high water mark fee of 15% shall be charged on the positive difference between the NAV for the current day and the higher of the following two values:

• NAV according to the latest calculations (for the last preceding business day on which NAV was calculated), and
• The highest NAV reached until the current moment over the current calendar year

At its discretion, Expat Asset Management may decide that on certain days a fee may not accrue or may accrue at a rate lower than the established one. The daily fee having accrued in the course of a month shall be paid to Expat Asset Management as a lump sum at the beginning of the month to follow.

Besides the management fee, the Fund will cover the following other expenses:

• All expenses pertinent to the establishment of the Mutual Fund, including FSC fees for the issuance of the Fund's organization and management license, Central Depository fee for registration of the Fund’s units, Stock Exchange fee for admitting the Fund's units to trading, as well as consultant fees
• Depository Bank fee – in accordance with the contract with the Depository Bank
• Fees paid to investment intermediaries, banks, the Stock Exchange and the Central Depository, etc. pertinent to the investment of the Mutual Fund’s assets
• Auditors’ fee for auditing the Mutual Fund's annual financial statement, advertising and marketing expenses, expenses made in the process of keeping in touch with the investors, supervision, membership and other fees pertinent to the Fund's functioning, paid to the FSC, the Stock Exchange and the Central Depository and other public bodies and institutions
• Expenses pertinent to transactions completed with securities or other liquid financial assets as well as to re-valuation of investment in the said securities and assets, losses incurred as a result of currency exchange rate fluctuations, extraordinary expenses not incurred through officials' fault, and other expenses made provisions for in the legislation
• Other expenses, stipulated in the Fund Rules, covered by the Fund, legal and other expenses pertinent to the protection of unitholders' interests, as well as other extraordinary expenses related to the Fund’s functioning

The table below reveals the maximum operatining expenses of Expat New Europe Stocks, calculated as a percentage of the average annual NAV, as planned by Expat Asset Management:

Expense	% of the average annual NAV
Fixed management fee*	1.90%
High water mark fee*	% of the profit
Other operating expenses**	Up to 1.50%

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* According to Expat New Europe Stocks Rules, Expat Asset Management may decide against claiming part of the fee. Generally, the high water mark fee is equivalent to 15%, charged only on the realized positive profit on a daily basis of the yields. For example, if the estimated annual portfolio yields is 30% (thirty percent), the high water mark fee will equal 4.50% of the average annual NAV.
** The "Other operating expenses" heading includes major predictable operating expenses such as: Bank Depository fee equivalent to up to 0.50%*** of the Fund’s average annual NAV; fees paid to investment intermediaries, banks, the Stock Exchange and the Central Depository, etc. pertinent to the investment of the Mutual Fund’s assets equivalent to up to 0.75%***; auditors’ fee for auditing the Mutual Fund’s annual financial statement, advertising and marketing expenses, expenses made in the process of keeping in touch with the investors, licence fees, supervision, membership and other fees pertinent to the Fund's functioning, paid to the FSC, the Stock Exchange and the Central Depository and other public bodies and institutions equivalent to up to 0.20%; other expenses, stipulated in the Fund Rules, covered by the Fund, legal and other expenses pertinent to the protection of unitholders' interests, as well as other extraordinary expenses related to the Fund's functioning equivalent to up to 0.05%.
*** As the said expenses are fixed or have a fixed component, a conservative assumption was made that the average annual NAV of the Mutual Fund over the first year following its establishment will be BGN 4,000,000.