Management Fee

A charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise. It can also include other items such as investor relations expenses and the administration costs of the fund.

The management fee is the cost of having your assets professionally managed. The fee pays other people to select which securities your money (along with that of the other investors in the fund) is invested into, to do all the paperwork needed and to provide information about the fund's holdings and performance.

Management fee structures vary from fund to fund, but they are typically based on a percentage of assets under management. For example, a mutual fund's management fee could be stated as 0.5% of assets under management.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Management fee — In the investment advisory industry, a management fee is a periodic payment that is paid by investors in a pooled investment fund to the fund s investment adviser for investment and portfolio management services. Contents 1 Mutual funds 2 Private …   Wikipedia

  • management fee — An investment advisory fee charged by the financial adviser to a fund typically on the basis of the fund s average assets, but sometimes determined on a sliding scale that declines as the dollar amount of the fund increases. Bloomberg Financial… …   Financial and business terms

  • Management fee — An investment advisory fee charged by the financial advisor to a fund based on the fund s average assets, but sometimes determined on a sliding scale that declines as the dollar amount of the fund increases. The New York Times Financial Glossary… …   Financial and business terms

  • management fee — n. monthly fee paid to a bank for the handling of a bank account …   English contemporary dictionary

  • Management Fee — einmalige, vom Kreditnehmer an den bzw. die Kreditgeber (an ein Konsortium) und evtl. an weitere in die Kreditgewährung einbezogene Beteiligte (Vermittler etc.) zu zahlende Provision, die z.B. bei der Aufnahme von (langfristigen) ⇡… …   Lexikon der Economics

  • account management fee — money paid to someone in order to handle financial accounts …   English contemporary dictionary

  • annual management fee — /ˌænjuəl mænɪdʒmənt fi:/ noun an annual charge made for running a fund, usually calculated as a percentage of the amount invested …   Dictionary of banking and finance

  • fee — A fixed amount or a percentage of an underwriting or principal. Bloomberg Financial Dictionary * * * fee fee [fiː] noun 1. [countable] COMMERCE an amount of money paid to a professional person or organization for their services: • If you want… …   Financial and business terms

  • Management buyout — A management buyout (MBO) is a form of acquisition where a company s existing managers acquire a large part or all of the company. Contents 1 Overview 2 Purpose 3 Financing 3.1 Debt Financing …   Wikipedia

  • Management buy-in — A management buy in (MBI) occurs when a manager or a management team from outside the company raises the necessary finance, buys it, and becomes the company s new management. A management buy in team often competes with other purchasers in the… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.