There will always be debate about the fairness of investment management fees. In the early days, when the industry was dominated by trust companies and private banks, investors would be charged a professional fee, usually through an hourly rate. This might have made sense if the client base was relatively uniform, say a couple of dozen dollar millionaires.
But in the more industrialised environment of the mutual fund it makes more sense to charge an ad valorem fee, which, in most jurisdictions, has settled at about 1% of assets every year.PremiumA subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.
United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
PODCAST | BUSINESS DAY SPOTLIGHT: New app to revolutionise SA agricultureFarmers will get some much-needed technology help from the award-winning Khula
Source: BDliveSA - 🏆 12. / 63 Read more »