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Is there a dilution levy?

There is a dilution levy, in line with standard industry practice. This could be applied if considered
necessary to reduce trading costs where they may disadvantage existing shareholders, and to preserve
the value of the fund’s underlying assets. GAM does not apply the dilution levy systematically and we
expect this would be infrequently applied, purely on a case-by-case basis.
Where a fund buys or sells underlying investments in response to a request for the issue or redemption of
Shares, it will generally incur a cost, made up of dealing costs and any spread between the bid and offer
prices of the investments concerned, which is not reflected in the issue or redemption price paid by or to
the Shareholder. With a view to reducing this cost (which, if it is material, disadvantages existing
shareholders of the fund) and in order to preserve the value of the underlying assets of the relevant fund,
where disclosed in the relevant Supplement, the Directors are entitled to require payment of a dilution
levy, to be added to or deducted from the Net Asset Value per Share as appropriate. The Manager will
normally charge a dilution levy of up to 1%. of the Net Asset Value per Share in the event of receipt for
processing of net subscription or net redemption requests (including subscriptions and/or redemptions
which would be effected as a result of conversions from one fund into another fund). The need to charge a
dilution levy will depend on the volume of purchases, conversions or redemptions of Shares on any given
Dealing Day, and this will be evaluated by the Manager without prior notification to the relevant
Shareholder. Please refer to the funds’ prospectuses for further details.

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