Management fee

Management fee

An investment advisory fee charged by the financial adviser to a fund typically on the basis of the fund's average assets, but sometimes determined on a sliding scale that declines as the dollar amount of the fund increases.

Management Fee

A fee that an investment advisory firm charges for making investment decisions on behalf of a client. Asset management often opens up more potential investment vehicles to the client, and, theoretically, asset managers have more knowledge and experience in making appropriate investment decisions than the client. Managers charge fees for these services. Usually, the fee is a small percentage of the assets under management, but because asset management is often open only to institutional investors and high net-worth individuals, the management fee is usually a large dollar amount. It is also called an advisory fee.

management fee

The money paid to the managers of an investment company. The fee is generally based on a percentage of the net asset value of the fund, with the percentage becoming smaller as the fund's assets grow larger. Fees vary considerably among firms but average about one half of 1% of assets. A fund's management fee must be listed in its prospectus and can be found in a number of publications. Also called advisory fee.

Management fee.

A management fee is the percentage of your account value that an investment company or manager charges to handle your account.

Fees for passively managed index funds typically cost less than the fees for actively managed funds, though fees differ significantly from one fund company to another.

References in periodicals archive ?
Investment Management Fee The Board of Aberforth Geared Income Trust plc
ySTANBUL (CyHAN)- A question from a reader concerning site management fees shows how tricky an unpaid site management fee problem can become.
This lowers the firm's asset-weighted average management fee -- already at an industry-leading low -- to 0.
Eight new pension fund managers would be selected based on the lowest fund management fee quoted by them.
The Citi Prime Finance 2013 Business Expense Benchmark Survey, which questioned 124 hedge fund firms in North America, Europe and Asia, found the traditional "two and 20" model of investment manager compensation - 2% management fee and 20% of the profits - has declined to fee levels as low as 1.
ISLAMABAD, December 04, 2011 (Frontier Star): The SECP has allowed the modaraba management companies to charge the management fee out of the net annual profit of the modaraba.
The agreement should make the supplier responsible for the budget, with all costs assessed on a pass-through basis and a fixed management fee with a cap.
Dentists in the dental network provide services for union members, as well as existing patients, in exchange for an annual management fee.
But the letter signed by Peter Lloyd-Cooper states: 'There is a management agreement between Rudgewick Limited and the club, but the club has not been able to make payment of the management fee for some considerable time due to cash flow difficulties.
After paying the vendor, CERES consolidates all the invoices on a weekly basis and bills the facility or chain, plus also adding a management fee based on 6% of the cost of goods.
Lenders want to see a management fee of approximately 5 percent of revenues along with a reserve for repair and replacement of approximately $225 to $250 per unit annually.
The Tax Court recently gave the IRS a wake-up call by allowing an S corporation shareholder to offset passive management fee deductions against related nonpassive management fee income.

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