Wealth Solutions

Mashreq Bank uses multiple custodians to safekeep your securities for which we charge a nominal fee. We call this a safekeeping fee. Mashreq Gold safekeeping fees are applicable from the 1st of February 2023.

Safekeeping charges on Equities, Exchange Traded Funds and Fixed Income Securities will be 0.25% p.a. of the value of assets under custody calculated on the average balance of assets under custody, are accrued daily and charged quarterly. VAT applicable over and above these charges.

The following types of investments have safekeeping fees:

• Global Equities
• Sukuks
• Perpetual
• Mutual Funds
• Fixed Maturity Plans
• Structured Notes

(All the above, exclude securities purchased or traded via Mashreq’s TraderPro Trading Platform or Mashreq Securities)

Safekeeping fees are charged four times a year in:

• April (for January – March)
• July (for April – June)
• October (for July – September)
• January of the following year (for October – December)

Please be reminded to have enough funds in your account so that your account does not get overdrawn on the settlement date of the safekeeping fees.

Safekeeping fees are calculated daily and then accumulated for each quarter of the year. The following formula is generally applied:

• Daily Safekeeping Fee = [(Day-end Quantity) x (Day-end Price) x (Safekeeping Fee Rate) x (Daily FX Rate to USD) (as applicable)] / 365
• Add up the daily safekeeping fees in a quarter to get the total amount of safekeeping fees that is chargeable for the past 3 months.

Asset Class	Investment Amount (AUM, in USD equivalent)	Accrued Daily Fee	Charged Quarterly Fee (e.g. 90 days in a Quarter)
Equities	USD 500,000	500,000 x 0.25% / 365 = USD 3.42	3.42 x 90 = USD 308.22
Fixed Income (Sukuks)	USD 1,000,000	1,000,000 x 0.25% / 365 = USD 6.84	6.84 x 90 = USD 616.43
Total AUM	USD 1,500,000		USD 924.65

A fee of up to 2% of the Portfolio value of the securities that are being transferred out of Mashreq is charged. The portfolio value refers to monetary value of the applicable portfolio being transferred valued at the prevailing market values as determined by the bank. A fee of up to 2% of the portfolio value is applied to the securities being transferred out of Mashreq. The portfolio value refers to monetary value of the applicable portfolio being transferred at prevailing market values, determined by the bank.

We will collect the payments by debiting your account; or, if there is insufficient fund in your account, we will first redeem units from any Money Market mutual fund(s), and then, as necessary, redeem units of the mutual fund(s) with the highest market value in your account.

A portfolio transfer can take several weeks to be completed. However, to speed up the process, please ensure that the securities in your portfolio are accepted by your bank or broker for transfer. For all such transferable securities, as instructed by you, we will reach out to your bank or broker to commence the transfer. We would also request you to submit the requisite transfer instructions to your bank or broker to facilitate this process.

Yes, you may select the securities that you would like to transfer out to another bank or broker and inform us of the same by submitting the Portfolio transfer Form.

It is possible to transfer in Mutual Funds, Fixed Income, Equities positions. Please contact your relationship manager so that we can ensure that the securities that you intend to transfer in are internally approved and can be held with our custodian. It is also possible that your current bank or broker may also charge a fee for transferring your portfolio. It is not our policy to reimburse any costs imposed by your bank or broker.