Expenses, incurred by clients are as follows.
Risk of Potential Loss
[Fees on Investment Advisory Services and Discretionary Investment Management Services]
In principle, fees are to be paid based on a calculation method, where the amount of assets is multiplied by a fee rate. Individual calculation methods cannot be provided in advance because they are determined according to the asset class, the investment management guidelines, and details of investment consultations with clients. Before signing an agreement, please make sure that you confirm the calculation methods for the fees on relevant investment services.
Under discretionary investment management agreements, trading commissions for invested assets, miscellaneous expenses for trust administration, and fees paid to overseas custodians who hold such assets, are deducted from the assets under management, according to the asset classes (in the case of investment in beneficiary certificates of investment trusts, trust fees, partial redemption charges, and other expenses related to such funds may be incurred) The specific amounts, ceilings, and calculation methods vary depending on the types and volume of assets to be actually invested in and managed, and therefore cannot be provided in advance.
[Early Termination Fee]
When terminating an agreement, an early termination fee may apply in accordance with the provisions of the agreement.
Taxes, Public Dues and Administrative Expenses
In addition to the above, under discretionary investment management agreements, various expenses, taxes and other public charges, and expenses necessary for handling taxes, other public charges, and administrative affairs related to invested asset classes are deducted from the assets under management or incurred by the clients. Under investment advisory agreements, when a client buys or sells securities. the tax systems related to securities purchased or sold apply. For example, a client is subject to taxes on profits from stock trading, dividends from securities and taxes on interest.