Risk and Expenses regarding Mutual Funds
Risks relating to Mutual Funds
Mutual Funds mainly invest in marketable securities such as domestic and overseas equities and fixed incomes those are subject to price fluctuations of markets, and thus the unit prices of such funds may also fluctuate depending on changes in the market indices of such assets, and changes in foreign exchange rates in case of assets denominated in foreign currencies.
The price of the fund is therefore exposed to the risk of fluctuations in the price of marketable securities and/or foreign exchange rates, and so on. Accordingly, the client's investment principal amount is not guaranteed.
As each mutual fund has its own target asset class, investment restrictions, markets and countries to be invested, and so on, the degree and characterlistics of the risks entailed by each mutual fund vary. Prospective clients are therefore requested to read carefully the prospectus and the "Documents prior to conclusion of contract" of the relevant mutual funds.
Fees and expenses relating to Mutual Funds
Clients bear the following expenses;
Fees and expenses to be paid directly at the time of subscription:
Subscription fee: Maximum 3.5% (excluding tax)
Fees and expenses to be paid directly at the time of redemption or selling:
Redemption (cancellation) fee: Maximum 1.0%
Expenses to be paid indirectly during the holding period
Management fees: Maximum 1.9% (excluding tax)
The above schedule just refers to the basic and general fee structure. The fees and expense may exceed the above listed maximum limits in case the Mutual Fund charges the performance fee. Similarlly the Mutual Fund invests in other funds and/or performance linked notes (in general "Euro-Yen" denominated notes), additional fees and expenses may be charged indirectly.
The schedule and/or upper limit relating those fees and expenses can not be specified due to the fluctuation of market values and/or other relevant condition of those funds and/or notes.
Additionally, the expenses according to the holding period of Mutual Funds are paid by clients. As the "Other Expenses" items fluctuate according to the investment circumstance, the schedule and/or upper limit relating those expenses can not be provided in advance. Prospective clients are therefore requested to confirm the relevant items by reading carefully the prospectus and the "Documents prior to conclusion of contract" of the relevant mutual fund.
As the total costs vary according to the holding period of each investor, it can not be specified beforehand.
<NOTES> The above risks and costs pertain to investment trusts in general. As regards the Subscription fee and other fees, the rates listed above are the highest among all investment trusts managed by SNAM. Furthermore, as the risks and charges entailed by an investment trust can vary considerably in each investment trust, the client is requested to read carefully all relevant items within the investment trust prospectus and the "Documents prior to conclusion of contract" in advance.