Not exact matches
Note that the ETF MERs are likely to be slightly
higher because certain operating expenses such as brokerage commissions and harmonized sales taxes will be charged to the fund in addition to the
management fee.
Bernie Geiss of Cove Financial Planning in North Vancouver, B.C., argues against investing in seg funds,
because the
management fees are typically
higher than similar mutual funds.
That's
because, unlike many other financial innovations, they don't load you up with heavy
management fees, or tie you down with
high redemption charges if you decide to get out of... Read More
Assuming active investing expenses are 2 % (some may be more, some may be less, but certainly none will be less than the passive investing expenses
because of
management fees and
higher trading costs etc), then the active group would have made 10 % - 2 % = 8 % on average.
That's
because, unlike many other financial innovations, they don't load you up with heavy
management fees, or tie you down with
high redemption charges if you decide to get out of them.
I say «at best,»
because the demonstrated naivete and mistakes in personal investment
management of millions of individual investors, makes it likely that their involvement in the securities markets is already a slightly «negative sum» game even before they pay such
high investment
fees and costs.
Now I use index mutual funds: their
management fees are
higher, but my overall costs are lower,
because I can add money and rebalance the portfolio without paying commissions.
It has a reasonable
management fee, has a
high trailing dividend yield (which will inevitably come down
because of all the dividend cuts in the sector), and has been around since 2001.
TFR is not a fan of active mutual funds,
because of the sizable drag of
management fees on overall performance, their
high portfolio turnover, and their requirement to hold significant cash to cover drawdowns creating another performance drag.
We also received a D in regulation and taxation
because of «steep investment taxes» levied on fund
management fees and a
high tax bill on investment returns.
Both impose relatively
high management fees — 1.47 percent annually at Portfolio 21, 1.48 percent at Green Century —
because they are actively managed funds and they engage in useful, but costly, shareholder advocacy.
Now, if the PM company is saying that the asset needs a lot of hands - on
management, and they require someone to be on site daily
because it is in a Class D area for instance then maybe that would warrant such a
high fee.
They are strongly incentivized to charge
high management fees and have
high tenant turnover,
because hey... what recourse does the hapless buyer have, it's just mo» money in the pocket of the Turkey provider, after all (in other words - caveat emptor, mater frotteurs!