Ch.7 · Total Expense Ratio Limits · medium
What does 'Total Liabilities' include in the NAV calculation?
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EXPLANATION
Total Liabilities in NAV calculation includes: accrued but unpaid expenses (TER components — management fees, custodian fees, RTA fees, audit fees), amounts payable for securities purchased but not yet settled, outstanding redemption payables, and other liabilities. These are deducted from total assets to arrive at net assets.
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