Anti-dilution levy
Article 7
1. Anti-dilution levies shall include the estimated explicit transaction costs referred to in Article 4(3), first subparagraph. Where appropriate to the investment strategy of the AIF, anti-dilution levies shall also include the implicit transaction costs referred to in Article 4(3), second subparagraph, including any significant market impact of asset purchases or sales to meet those subscriptions or redemptions. Those implicit transaction costs shall be estimated on a best effort basis. 2. Anti-dilution levies shall be expressed as either of the following: (a) a percentage of the subscription or redemption orders; (b) a monetary value. 3. An AIFM may activate anti-dilution levies where on a given dealing date: (a) the aggregate amount of redemption orders exceeds that of subscription orders, resulting in net redemptions; (b) the aggregate amount of subscription orders exceeds that of redemption orders, resulting in net subscriptions. For the purposes of point (a), the anti-dilution levy shall be deducted from the amount paid to redeeming investors. For the purposes of point (b), the anti-dilution levy shall be charged to subscribing investors.