Management Fees

Contents

Fees are usually Management Fees which are deducted from the Account Daily Cash Balance.

You can calculate rate of return Gross of Fees (Ignore the effect of fees) or Net of Fees.

Gross of fees will produce higher returns, but will reflect the quality of the investments without regard to different fees among different advisors.

If you ignore the effect of fees, you should include the following in your performance footnotes:

•That the results do not reflect the deduction of investment management fees;

•The return will be reduced by the management fees and other expenses incurred in the management of the account;

•The advisor's investment advisory fees are described in [state the name of the document or form].

You should also consult with any compliance officer in your organization.