Safekeeping FAQ
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
- Bond/Sukuks
- Perpetual
- Treasury Bills
- 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)
Safekeeping fees are calculated daily and then accumulated for each quarter of the year.
The following formula is generally applied:
a) Daily Safekeeping Fee = [(Day-end Quantity) x (Day-end Price) x (Safekeeping Fee Rate) x (Daily FX Rate to USD) (as applicable)] / 365
b) 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 (Bonds/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 |