- Two sets of management fees that are paid by an investor for the same group of assets. This practice is found in many types of investment vehicles such as wrap funds, variable annuities, registered investment advisor client accounts and even mutual funds.
Information about layered fees in an investment product should be stated in the prospectus. Layered fees should generally be avoided by an investor because paying money managers for assets they are not directing is wasteful.
However, layered fees should be considered if there is truly a case to be made for the primary manager to add value. There are several cases where paying a layered fee can be acceptable, such as:
1. Investments in foreign companies. This is because of the higher costs and complexities in investing in these companies directly.
2. A low cost ETF or other fund purchased to provide exposure to a commodity, such as gold or silver.
3. As a hedge, such as in the case of a short fund or interest rate instrument.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Sub-Advised Fund — An atypical fund structure in which a fund, such as a hedge fund or mutual fund, is managed by another management team or firm than where the assets are held. Sub advised funds are often found in wrap programs or variable annuities. Sub advised… … Investment dictionary
3G — is the third generation of mobile phone standards and technology, superseding 2.5G. It is based on the International Telecommunication Union (ITU) family of standards under the IMT 2000 [Clint Smith, Daniel Collins. 3G Wireless Networks , page… … Wikipedia
Australia — /aw strayl yeuh/, n. 1. a continent SE of Asia, between the Indian and the Pacific oceans. 18,438,824; 2,948,366 sq. mi. (7,636,270 sq. km). 2. Commonwealth of, a member of the Commonwealth of Nations, consisting of the federated states and… … Universalium
Examples of feudalism — are helpful to fully understand feudalism and feudal society. Feudalism was practiced in many different ways, depending on location and time period, thus a high level encompassing conceptual definition does not always provide a reader with the… … Wikipedia
Public education — is education mandated for or offered to the children of the general public by the government, whether national, regional, or local, provided by an institution of civil government, and paid for, in whole or in part, by taxes. The term is generally … Wikipedia
Network neutrality — This article is about the general principle of network neutrality. For its specific application to Canada, see Network neutrality in Canada. For its application to the U.S., see Network neutrality in the United States. Network Neutrality Related… … Wikipedia
Dublin City University — Ollscoil Chathair Bhaile Átha Cliath Latin: Universitas Urbis Dubliniae Established 1975 (University status from 1989) … Wikipedia
Chevrolet Volt — Manufacturer Chevrolet division of General Motors Also called Holden Volt Opel Ampera Vauxhall Ampera … Wikipedia
Equestrian Sports — ▪ 2009 Introduction Thoroughbred Racing. United States. A seemingly invincible three year old colt named Big Brown took American Thoroughbred racing by storm during the 2008 spring classic season. In the 134th Kentucky Derby on May 3, Big… … Universalium
OSI model — 7. Application layer NNTP · SIP · SSI · DNS · FTP · Gopher · … Wikipedia