Friday, January 7, 2011

Management Fee

The management fee (sometimes referred to as investment management fee) is the charge that investors pay the fund manager for managing the fund. Depending on how the fee is specifically defined, the fee is generally used to compensate the fund manager for their services in research, strategy and implementation in order to try and achieve the fund's investment objectives. Management fees vary in nature (e.g. fixed vs variable/ performance fee) and quantum (e.g. 0.30% to 1.50%) from fund to fund.

Synonyms: Investment management fee, Management charge

If you have any further questions or would like to add to this fund management term, then please submit your thoughts below.

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