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Management Fee Management fees represent that portion of a mutual fund's operating expenses that go to compensate the fund's investment adviser or manager. This individual is a financial professional who manages the day to day investment activities of the fund in concert with a staff of researchers and appropriate office personnel. In expressing the expense ratio of a fund (the percentage of the fund's assets used to administer the fund), the management fee is taken in concert with the 12B-1 Fee (marketing and advertising costs) and with administrative costs (relative to such items as record keeping and the maintenance of various customer service venues) to achieve a final expense ratio figure. Typically these fees will be higher on actively managed funds in which assets are bought and sold on a daily basis and the fund's manager is engaged in full-time research to keep the fund's dealings in line with its stated investment goals and strategies. More Terms Explained here |
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