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	0.10%
From BGN 100,000.01 to BGN 500,000 including	0.05%
Above BGN 500,000	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 share:

Invested amount and investment period	Redemption fee
Up to 12 months and investment up to BGN 100,000	0.50%
Up to 12 months and investment between BGN 100,00 and 500,00	0.40%
Up to 12 months and investment over BGN 500,000	0.30%
More than 12 months and investment up to BGN 100,000	0.30%
More than 12 months and investment above BGN 100,00	0.20%

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 the Asset Management Vehicle:

• 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 BG90UNCR7000101EXPAT03
BIC UNCRBGSF
Details: Purchase of shares of MF

Expenses covered by the Fund (indirect investor expenses)

Those expenses are subtracted from Expat Bond's 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 shall amount to 0.90% of the Mutual Fund's average annual NAV. The daily fee having accrued in the course of a month shall be paid to Expat Asset Maanagement 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 operating expenses of Expat Bonds, calculated as a percentage of the average annual NAV, as planned by Expat Asset Management:

Expense	% of the average annual NAV
Fixed management fee*	0.90%
Other operating expenses**	Up to 3.00%
Total operating expenses	Up to 3.90%

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* According to Expat Bonds Rules, Expat Asset Management may decide against claiming part of the fee.
** The "Other operating expenses" heading includes major predictable operating expenses such as: Bank Depository fee equivalent to up to 0.15% 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 2.60%; 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%.