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What is a Variable Management Fee (VMF)?

The variable share classes are subject to a Variable Management Fee (VMF), in place of the investment management charge applied to other share classes. Only some investments have a variable share class.

The VMF is made up of a set base fee which is lower than the investment management charge of other share classes, together with a variable fee which is calculated daily to the nearest 0.01%. The variable fee is calculated based on performance of the investment relative to that of its market index over the same period. If the share class outperforms the market index, the VMF will increase over the base fee. If it under-performs the market index, the VMF will decrease under the base fee. This can only increase to a maximum (the cap) and decrease to a minimum (the collar).

For more information, please see the specific investment’s key information document and prospectus.