Version date: 14 March 2018 - onwards
  Version 9 of 9    

xviii. Distributions out of and charging of fees and expenses to capital

1. The Retail Investor AIF may only make distributions out of capital where its prospectus has included the following disclosures:

(a) the rationale behind the policy;

(b) a prominent risk warning, at the front of the prospectus, which describes the effects of making distributions from capital. This warning must include the following:

that capital will be eroded;

that the distribution is achieved by forgoing the potential for future capital growth;

this cycle may continue until all capital is depleted; and

(c) highlight that distributions out of capital may have different tax implications to distributions of income and recommend that investors seek advice in this regard.

2. The Retail Investor AIF shall only charge fees and expenses, including management fees, to capital where its prospectus has included the following disclosures:

(a) indicate that fees and expenses, including management fees, or a portion thereof, may be charged to capital;

(b) a prominent risk warning in